The role of risk management in operations management Name Institutional affiliation Tutor Date The role of risk management in operations management Every business faces a certain amount of risk in its daily operations and has to deal with the outcomes of such risk, whether positive or negative…
It is vital to define the term “risk” before embarking on a discussion about managing risk. Generally, risk can be termed as the uncertainty over possible future deviations from the objectives of a given organization. Such deviation may be caused by certain events or circumstances whose consequences may be positive or negative (Hopkin, 2012 pp.14). Simply put, risk is anything that can potentially cause negative or positive effects on the implementation of established business objectives (Longenecker et.al, 2006 pp.463). Since corporate objectives are diverse in nature, there are many types of risks that a business may be forced to tackle. Types of risks There are different types of risks facing an organization, depending on the operations of the specific organization. Nonetheless, the following are a number of general risks that each and every business has to deal with in its normal operations: Hazard 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 risks are deliberate and the business invests in such risks in order to gain in future. Although opportunity risks are intended to bring about positive results, there is no guarantee that such results will 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 mostly 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 tentative 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, while 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 operational uncertainties and losses (Steinberg, 2011 pp.75). Risk management aims to protect the business from liability by focusing on ...
Cite this document
(“Risk Management Research Paper Example | Topics and Well Written Essays - 1750 words”, n.d.)
Retrieved from https://studentshare.net/other/11944-risk-management
(Risk Management Research Paper Example | Topics and Well Written Essays - 1750 Words)
“Risk Management Research Paper Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.net/other/11944-risk-management.
Risk management activities in project life cycle are also identified. Potential risks to project management are also outlined. Risk Management Process Risk management is a managerial process of identifying, measuring and ensuring that uncertain events which will affect resources are minimized and avoided.
The current data based on losses caused by employee theft amount to 75 percent of any of the above businesses in their annual earnings (Ramsey and Ramsey 44). Cash drawers are risky ways of storing a business’ finances especially in places where the allocated place for drawer is accessible by multiple workers.
This paper aptly discusses and describes the risk management issue at a large teaching hospital, identifies the steps taken to address the issue, discusses how the organization is determined to solve the problem. Furthermore, this article identifies other facilities that have are adopted three sources in addressing the same problem and describes the comparison of the research and the process being developed at the organization.
7-Eleven is headquartered in Dallas, Texas and it has various subsidiaries in different locations which are operated by in excess of 45,000 of its employees. The organisation is further recognised as one of the
This case is about psychiatric emergencies, where care providers have to deal with crises relating to patient behavior. In this instance the emergency is of the nature that is non-medical. It is psychiatric, and the goal is to be able to up the
Risk management systems are important to organizations in that they make them aware of what certain risks are capable of doing to them, and by identifying such, give them the advantage of being ready for them in case they materialize. Concisely, risk management systems are meant to identify potential risks.