RISK MANAGEMENT
Security and Risk Management Essay
Introduction
Risk can be closely linked with the existence of humans on planet earth, as they continue to identify a number of sudden or in some instances unexpected events. These events can be classified as either natural or possibly even man made. The difficulty of avoiding the uncertainty of the consequence related to the risk, in the long term makes people risk adverse. Taking into consideration risk avoidance, risk transfer, risk retention and where appropriate the necessity of risk reduction, by reducing the impact of the event from initially occurring.
The risk management model has been around for many years and can be seen as one of the oldest human activities. Documented within the bible it identifies Noah, who built the ark and managed the crisis of the flood. This clearly shows how Noah can be expressed and be seen as one of the earliest contributors towards risk management. According to (Borodzicz, 2005 p2) the spoken words of Aristotle, “It must be expected that something unexpected must happen”, is another figure that can be identified as having an understanding in the importance of risk.
As there are four core strategies that fulfil the concept of risk management, it should be made aware and taken into consideration that risk management is a subject that is concerned with the overall management of a company’s activity. When selecting any risk management strategy to be used within the organisations environment, the management process should concentrate on initially identifying the risk that needs to be managed. This is then followed with the evaluation or assessment of the risk, to determine what extent in terms of impact the risk has on the organisation and the probability of the risk occurring. The business can then plan and manage the risk using the core strategies. Risk occurrences cannot be managed without identifying what the risk is and assessing the severity and likelihood of it occurring. The
Introduction
Risk can be closely linked with the existence of humans on planet earth, as they continue to identify a number of sudden or in some instances unexpected events. These events can be classified as either natural or possibly even man made. The difficulty of avoiding the uncertainty of the consequence related to the risk, in the long term makes people risk adverse. Taking into consideration risk avoidance, risk transfer, risk retention and where appropriate the necessity of risk reduction, by reducing the impact of the event from initially occurring.
The risk management model has been around for many years and can be seen as one of the oldest human activities. Documented within the bible it identifies Noah, who built the ark and managed the crisis of the flood. This clearly shows how Noah can be expressed and be seen as one of the earliest contributors towards risk management. According to (Borodzicz, 2005 p2) the spoken words of Aristotle, “It must be expected that something unexpected must happen”, is another figure that can be identified as having an understanding in the importance of risk.
As there are four core strategies that fulfil the concept of risk management, it should be made aware and taken into consideration that risk management is a subject that is concerned with the overall management of a company’s activity. When selecting any risk management strategy to be used within the organisations environment, the management process should concentrate on initially identifying the risk that needs to be managed. This is then followed with the evaluation or assessment of the risk, to determine what extent in terms of impact the risk has on the organisation and the probability of the risk occurring. The business can then plan and manage the risk using the core strategies. Risk occurrences cannot be managed without identifying what the risk is and assessing the severity and likelihood of it occurring. The
References: Borodzicz, E. P (2005) Risk, crisis and security management, West Sussex: John Wiley and Sons. Available from: http://books.google.co.uk (Accessed 14th October 2013) Conti (2013) The art of risk management (online). Available from: http://www.insurewise.bz/the-arrt-of-risk-management/ (Accessed 14th October 2013) Charrel, P. J and Galarreta D. (2007) Project management and risk management in complex projects: studies in organizational semiotics. Kluwer Academic Publishers: Dordrecht. Available from: http://scholar.google.co.uk (Accessed 14th October 2013) Hubbard. D (2009) The failure of risk management: Why it 's broken and how to fix it. John Wiley & Sons Available from: http://books.google.co.uk (Accessed 15th October 2013) Kingston. M and Behn.O (n.d) Risk transfer through hardening mentalities? (online). Available from: http://www.odihpn.org (Accessed 10th October 2013)