Risk Management

           

Introduction

The organizational risk management refers to the process that encompasses the identification of risks that an organization faces, assessment of the risks as well as the steps that are to be implemented to reduce these risks to the level that can be said to be acceptable. The rationale behind the issue of risk management is to ensure that the organization establishes the evident problems before they take place and adopts the necessary risk management activities to mitigate the adverse impacts of the risk to the organization (Hopkin, 2014). The risk management practice is normally an uninterrupted and futuristic process that is a significant component of the business as well as technical management processes. It is imperative that risk management addresses all the issues that can jeopardize the realization of the organization’s essential objectives. The effective risk management strategies are adopted as a means of efficiently anticipating and mitigating the possible risks that an organization could face, adversely impacting their critical projects.

Scope

The effectiveness of an organization’s risk management efforts is informed by the aggressive and early establishment of the risks through the collaboration and involvement of the relevant stakeholders. It is additionally clear that the existence of strong leadership is essential to the development of effective risk management efforts encompassing an environment that promotes free and open communication channels on all the issues relating to the risk. It additionally follows that although technical attributes are the chief concern in both the initial and the course of project execution, it is imperative that the risk management addresses both the internal as well as external sources for schedule, cost and technical risks. The early, as well as aggressive detection of risk is vital as it is normally easier, less disruptive and less costly to institute changes moreover correct work efforts early rather than later phases of the project.

Compliance Issues in Risk Management

In this age of increased uncertainties regarding the operations of business, one of the prevailing assertions is that compliance is an essential component of successful execution of businesses. The diverse compliance requirements are meant to ensure that businesses and the individuals tasked with the role of executing the operations do the right thing to realize the business objectives. Some of the laws that are seen to enhance organization compliance to the risk management requirements include the subjection of organizations to section 404 of the Sarbanes-Oxley Act of the year 2002. The act demands that the US publicly traded organization to implement regular internal control evaluations.

In the year 2007, the Securities and Exchange Commission (SEC) which has the additional role of governing public companies increased the emphasis on the issue of corporate risk evaluation (Bessis & O'Kelly, 2015). The SEC requires that entities implement risk assessment as fraud review entailing the estimation of the probable cases of the organization being exposed to the risk of fraud and the necessary mitigation efforts. The SEC further issues the rules that are meant to guide the disclosures of the extent of the role of the board in the oversight (Sadgrove, 2016). Through the laws and regulations, organizations can better identify the risks and minimize the surprises, beef up their controls along with risk mitigation strategies, realize cost savings along with efficiencies and improve their capital planning processes.

Key Roles and Responsibilities

Role	Responsibilities
Senior risk manager	He is responsible for guiding the identifying moreover determining the framework, significance, impact, timing, as well as the priority of the risk.  Manager offering the necessary methodology to aid in the identification as well as analysis of the impacts the risks have to the organization.
Project Manager	The Risk Manager establishes whether the Risk is distinctive identifies risk linkage in the different departments of the organization; he validates whether the risk is internal or external to the organization and allocates risk cataloging and tracking serials.  In  implements regular assessment of the possible risks the organization faces
Organization Team  leader	He is responsible for recognizing the risks, the degrees of the risk of the organization, the perspective, and outcome of the risk.  He is additionally accountable for the determination of the impact, timing, furthermore priority of the risk
Key Stakeholders	The key stakeholders aid in the identification as well as establishing the context, outcome, impact, timing, the moreover precedence of the risk.

Risk Management Schedule

The table below encompasses the procedure to be followed in the assessment of the risks that are associated with this construction company.

Method	Date	Outcome
Brainstorming	6/12/2016	All the stakeholders are invited to take part in the assessment of the possible risks that the organization faces
Interviewing	20/12/2016	Once a risk is identified, the specific individuals working in the areas identified are interviewed to establish the degree of the risk as well as the likelihood of its occurrence
SWOT analysis	02/01/2017	There is the assessment of the strengths, weaknesses, opportunities and threats of each  of the established risk assessing the cost effectiveness of the diverse intervention strategies to be adopted in their mitigation
Assigning duties	09/01/2016	The last step encompasses assigning specific individuals to each of the specific risks regarding assessing the effectiveness of the mitigating factors and reporting any challenges that may come up

References

Bessis, J., & O'Kelly, B. (2015). Risk management in banking. John Wiley & Sons.

Hopkin, P. (2014). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.

Sadgrove, K. (2016). The complete guide to business risk management. Routledge.

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in college research paper services if you need a similar paper you can place your order for best essay services online.