Importance of Risk Management System
1.Context for risk management: The term risk management system can be defined as process by which the management of an organization can measure the scope and intensity of a potential risk and determines methods to prevent or eradicate the risk (Poolsappasit, Dewri and Ray 2012). For developing an effective risk management strategy an organization should consider both internal and external set of circumstances within which the organization is operating.
Several techniques and tools are there in order to identify risk factor within an organization
The tools that are used for document evaluation ae as follows
- Delphi techniques
- Information gathering techniques
- Brainstorming
- Interviewing
- Checklist analysis
- Influential diagram
Delphi technique facilitates the allocation of appropriate responses and further re-circulates among the experts from relevant responses (Pritchard and PMP 2014). This technique helps the organization to attain proficient, skilled base as well as obtaining unbiased data.
Influence diagram can be defined as the graphical or digital representation of scenarios that reveals the impact or association among variables.
Governing polices like S/NZS ISO 31000:2009 Risk Management helps an organization to identify the process of risk management (Jha, Bloch and Lamond 2012). Comprehensive legislature provides an effective strategic vision to the management by distinguishing the degree of risk.
2.The role of stakeholders is highly crucial when it comes to risk assessment. The consultations with stakeholders are impacted by certain social as well as cultural association. Risk managers’ needs to be more rational and proficient in order to regulate strategies and evaluate risk factors. Four types are risks are generally faced by an organization namely, strategic risks, compliance risks, financial risks and operational risks (Sadgrove 2016).
|
Impact |
Rare |
Unlikely |
Possible |
Likely |
Almost certain |
|
Catastrophic |
Low |
Moderate |
High |
High |
High |
|
Major |
Low |
Moderate |
Moderate |
High |
High |
|
Moderate |
Low |
Low |
Moderate |
Moderate |
High |
|
Minor |
Low |
Low |
Moderate |
Moderate |
Moderate |
|
Insignificant |
Low |
Low |
Low |
Moderate |
Moderate |
Likelihood
Fire in workplace is a major hazard that needs to be addressed by the risk management team on a crucial basis. Fire risk situation involves fire from flammable liquids and vapor, waste and combustible material, objects that generate heat, dust build up and others.
During the work process the chief stakeholders includes the employees of HRM department, HRM managers, the facilities manager (Wallace and Webber 2017). Other stake holder includes all the employees who are given the responsibilities to report any fire related hazards, along with private as well as government emergency service providers also plays a crucial role in managing the hazard.
The legislative requirements associated with the fire related risks are covered by the new fire legislation known as the Regulatory Reform (fire safety). According to the legislation, all the organization needs to implement fire preventive measures like provision of fire extinguisher in room of the organization (Amezcua et al. 2013)
Give examples of outside parties a manager may consult in a contingency plan for removal of asbestos from their company.
Outsider parties to which the manager may consult in order o remove asbestos from their company includes the local suppliers, healthcare provides as well as the local government authorities.
Outline the areas a contingency plan should ideally cover.
A contingency plan must cover the following areas
- Natural disasters
- Risk of getting bankrupt
- Training key personnel for disaster management
- Physical disaster like an power outrage and loss of electrical power
- Alternative communication strategies (Sahebjamnia, Torabi and Mansouri 2015)
- Alternative site of operations
When recruiting a new employee, what considerations need to be made in justifying their addition to the staff.
While recruiting new employees, the following factors need to be considered:
- Skill and experience:
- Communication skills
- Creativity
- Attitude
- Integrity
- Personality
Tools and Techniques for Identifying Risk Factors
What is a Performance Management Plan used for and what may be the consequences of the results
The chief purpose of the performance management plan is plan, monitor and review the work objective swell as overall contribution of an employee to the organization. With the help of performance management plan, employers are able to access the skills of each employee.
The consequences of an effective performance management plan are highly positive. With the help of the plan the management is able to detect the employees who need to be provided with a training session for improvement (McKeever 2016). Along with that, a performance management plan also enable the management to detect the highly skilled employees who needs to be retained by the company.
What are three ways operational performance can be measured?
The three chief ways buy which operational performance can be measured are graphic rating scales, 360 degree feedback an self evolution.
What strategies can be used to improve productivity?
- Improving staffs by enhancing their knowledge, attitude an skills and by implementing better system of recruitment, training ad development.
- Introducing new systems and technology
- Creating an employee friendly workplace
- Effective consumer-company interaction
Which is more efficient in the longer term for a staff member: coaching or mentoring
Both coaching and mentoring has the capability to enhance the efficiency of the staffs. However, staffs trained through mentoring are found be have maintained their efficiency for a prolonged period of time (Macaulay 2018). Moreover, mentoring helps in developing the relationship between employees and employers, hence mentoring is more effective than coaching.
List five qualities that are required of a successful mentor or coach and give a brief reason why you consider base qualities important.
- Ability to communicate with the employees
- Availability, approachability and ability to listen
- Honesty along with diplomacy
- Compassion and genuineness
- Objectivity and fairness
Where and how should sensitive information be kept?
Sensitive information should always be encrypted and the security software should always be kept up to date. Hard to guess passwords should be used.
What are the purposes of the Key performance Indicators?
The purpose of the key performance indicator is to demonstrate how effectively a company is able to achieve its key business objectives.
2.Why is it important for managers to plan in advance?
Manager should plan earlier in order gain the ability to become assertive in taking risks and thus prevent failure of the business (Macaulay 2018). Not only that, preplanning also helps the manager to define their goal and objective and thus it become easier for them to achieve the same.
Outline the ways an Operational Plan can be implemented.
- Implementing regular team meeting
- Allocating the responsibility
- Revising position description
- Providing effective training to the employees
- Proving mentoring and coaching
- Measuring and monitoring the system
What factors may assist in the achievement of Key Performance Indicators?
The factors that has the ability to assist the achievement of KPI are minimization of web traffic, and availability of consumer data, business related information and product information.
What situations may arise that highlight the need for a contingency plan?
Situations like natural disasters or sudden crisis in the company highlights the need for contingency plan in a company.
Imagine you have been asked to put together a proposal to senior management. Where would you source your information?
I will source the information from the ground level employees by enquiring them about the issues faced by them. Along with that, I will also gather information from the Human resource department.
Stakeholders’ Roles in Risk Assessment
What areas should you not ask questions about when interviewing potential employees (in accordance with diversity policies and anti-discrimination legislation)?
While interviewing an employee, no question should be asked about his or her race, color, gender or sexual orientation. Any personal question related to his or her religion should not be asked.
What should new employees be informed of during a new employee induction?
During an induction, a new employee should be informed about all the anti discrimination and zero tolerance policies and procedure of the company along with his specific job role, annul wages and organizational structure of the company (McKeever 2016).
Suggest at Least one way that you could monitor your department’s budget.
I will like to use the reserve system for monitoring the budget of my department. A department’s total reserves should reflect expenditure plans for future years and any movement into the reserves can only be performed in the end of the year.
What factors may result in a decreased budget
Inappropriate planning of budget along with more expenditure than costs can result into a decreased budget.
If an employee was struggling with a particular task, what strategy would you use to help them?
I will personally provide assistance to the employee and will learn about the particular difficulties faced by him. This will help me to determine whether he needs to be trained for development of his skills or not. In order to develop his skills I will provide him with effective training session if needed.
What circumstances would require you to alter an Operational Plan?
Operational structure are changed in cases where the organizational structure has been changed or the current operational plan proves to be highly ineffective resulting in high employee attrition or enhanced loss of revenues
What could be the possible outcomes if company records were inaccurate?
Inaccuracy in financial report results in issues with the regulatory authorities, banking institution as well as investors (Amezcua et al. 2013). Moreover, penalties, tax fee and audits are also the result of inaccurate company record. Thus inaccurate company record results in loss of revenue of any business organization.
Reference list
Amezcua, A.S., Grimes, M.G., Bradley, S.W. and Wiklund, J., 2013. Organizational sponsorship and founding environments: a contingency view on the survival of business-incubated firms, 1994–2007. Academy of Management Journal, 56(6), pp.1628-1654.
Jha, A.K., Bloch, R. and Lamond, J., 2012. Cities and flooding: a guide to integrated urban flood risk management for the 21st century. The World Bank.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and Society Canon pp. 155-167
McKeever, M., 2016. How to write a business plan. Nolo.
Poolsappasit, N., Dewri, R. and Ray, I., 2012. Dynamic security risk management using bayesian attack graphs. IEEE Transactions on Dependable and Secure Computing, 9(1), pp.61-74.
Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. Auerbach Publications.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Sahebjamnia, N., Torabi, S.A. and Mansouri, S.A., 2015. Integrated business continuity and disaster recovery planning: Towards organizational resilience. European Journal of Operational Research, 242(1), pp.261-273.
Wallace, M. and Webber, L., 2017. The disaster recovery handbook: A step-by-step plan to ensure business continuity and protect vital operations, facilities, and assets. Amacom.
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