Risk Management Research Paper Example | Topics and Well Written Essays - 1750 words

Risk Management - look into Paper ExampleIt is vital to define the term risk before embarking on a treatment about managing risk. Generally, risk can be termed as the uncertainty over contingent future deviations from the objectives of a given organization. such deviation whitethorn be caused by certain events or circumstances whose consequences may be positive or forbid (Hopkin, 2012 pp.14). Simply put, risk is anything that can potentially cause negative or positive effects on the implementation of established work objectives (Longenecker et.al, 2006 pp.463). Since corporate objectives are various(a) in nature, there are many types of risks that a business may be forced to tackle. Types of risks thither are different types of risks facing an organization, depending on the operations of the specific organization. Nonetheless, the following are a subroutine of general risks that each and every business has to deal with in its normal operations contingency risks Hazard risks are the types of risks that only result in negative outcomes for the business. According to Hopkin (2012, pp.15) these are the types of risks that an organization faces during daily operations. ... such(prenominal) risks are deliberate and the business beautifys in such risks in order to gain in future. Although prospect risks are intended to necessitate about positive results, there is no guarantee that such results get out always be positive. Most opportunity risks involve the financial aspects of the business and may entail invest in equity shares, opening up new branches, producing new products, and moving to new locations (Sadgrove, 2005 pp.211). Control risks there are those types of risks that can be generalized as neither negative nor positive, in terms of the outcomes they give. Such risks give the business a certain level of uncertainty about the future and are loosely associated with the profit a certain project may bring to the business. Hopkin (2012, pp.17) states that an organization is forced to deal with the provisionary effects of projected results versus the actual results. For example, an organization may start a project and somewhere in the middle, the project collapses or data and records appertaining to such a project may get lost. Such events bring about negative outcomes, as opposed to what was expected of the project. Risk management Risk management involves identifying and analyzing the possible outcomes of future events to ensure that their impact will be favorable on the business. Accordingly, the impacts of negative events are minimized, small-arm the potential positive events are maximized. In order to ensure the control over risk, any business needs to have clear goals for risk management. Goals of risk management Risk management aims at minimizing operating(a) uncertainties and losses (Steinberg, 2011 pp.75). Risk management aims to protect the business from liability by focusing on