Risk Assessment and Management Paper
I have question to be answer and I already put three different answers. All you need to do is paraphrase one good answer and include your thoughts and Opinions thank you
QUESTION
There is good content in the text directed toward identifying the basics of understanding the concept of Risk. Then, in this board, summarize the most important message that the author presents regarding Risk. You can accomplish this easily by mentally thinking: “What is the main message of Chapter 4?” Think of an example of your own that would help to formulate a logical working mental concept of Risk. Note: we have a separate course that addresses Risk. Therefore, any preliminary commentary would be appropriate.
answer 1
Chapter 4 is mainly focused on the risk assessment and management and showed how is that thing important for establishing a BC program. Risk management is a procedure of understanding, managing, and analyzing individual and overall risk events by reducing threats and maximizing opportunities. These threats or risks could come from a wide assortment of sources, including strategic management errors, natural disasters, and accidents. As a result, a risk management plan increasingly includes companies’ and government processes for identifying and controlling threats. Besides that, that’s chapter provides basic ideas about how to do risk mitigation for projects and businesses, such as
- Each risk is reviewed in the context of the mitigating controls that are in place as a preventative measure.
- Appropriate action is then determined based on the level of residual risk.
- These responses could be risk avoidance, risk sharing, risk acceptance or risk mitigation which mains actions to reduce the impact or likelihood of occurrence.
Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), 1-13.
Burtles, J. (2016). Principles and Practice of Business Continuity: Tools and Techniques Second Edition. Rothstein Publishing.
Answer 2
Every business faces threats and risks to its operations from time to time, and thus business continuity is vital while experiencing risks. Risks are different for every entity. There are two primary ways of managing risks; enterprise risk, which affects the business in terms of facilities, people, assets and information technology, and operational risk, which affects business operations. These vulnerabilities may include governance, analysis of downtime, and report-making processes. Assessment and management of risk in any business are as essential as the business operations are to the administration (Burtles, 2016).
The authors state that it is critical to develop a plan or set of strategies to deal with any situation that may arise, but in doing so, identify significant risks and threats and then plan accordingly. A business organization needs to have a risk management protocol to counter the risks when they emerge. Through Grid impact analysis, an organization can analyze complete systems to identify its critical components (Burtles, 2016). This approach will enable the business to assess the extent and quality of risk in any of the components. It also can be done by checking all the areas concerned, individually evaluating them, and coming up with the entire risk’s impression.
Therefore, risk can be explained as any factor that interferes with the normal operations of an organization and threatens to deter its functions. It can be indirect or direct, visible or invisible, and warrants an organization to develop a business continuity plan to safeguard it from the risks. Developing the business continuity plan will ensure that the organization or business survives the risks and mitigates the threats likely to be faced due to the risks.
Reference
Burtles, J. (2016). Principles and Practice of Business Continuity: Tools and Techniques (2nd ed). Brookfield, CT: Rothstein Publishing.
Answer 3
The overall concept of Chapter 4 is this idea of risk that results in loss. Burtles and Noakes-Fry (2016) emphasize that any of these situations would be made worse if you were either unaware of the loss or unable to access the situation through lack of information about the circumstance. Therefore, your risk assessment needs to be based on those risks which can lead to potential outcomes (Burtles and Noakes-Fry, 2016). It also went into detail about risk management and the effectiveness of a company. Having a risk management report will help with existing threats and using a methodical approach is found to be effective. The two approaches of Identifying risk and quantity, and having a general permission about risk and qualifying them both have their benefits, but according to Burtles and Noakes-Fry (2016) a qualitative approach is better. Burtles and Noakes-Fry (2016) say the quantitative method which seeks to put a numeric value against the risk usually depends on having reliable statistics from which to extrapolate the future. In practice these figures are not readily available and, in any event, the past my no longer reflect the future. Yesterday’s problems will have superseded as we improve our technology, and skills (Burtles and Noakes-Fry, 2016).
Although not the most important take away point but worth noting was the concept of the grid impact analysis which develops and delivers a solution to the problem, risk assessment and it being constant, regular risk, or irregular. Also, the cost of loss was discussed and how defensive measures have three types. Other important things noted in Chapter 4 was the cause of a business and its interruption which can result in natural, manmade, accidental, deliberate, or indirect. I also liked how Burtles and Noakes-Fry (2016) talked about which type of programs are used to develop risk through a group setting such as Qwik Risk, and the computer software of smart risk that identifies how high or low the risk is. A great take away point that was said well in the reading was when Burtles and Noakes-Fry (2016) compared loss and profit. According to Burtles and Noakes-Fry (2016) it is stated that if you can prevent the consequences of one outage the preventative measures are paid for. If you can prevent two you can show a profit. During a disruption the income is lost but the overhead continues unbated. This is a double whammy situation- a negative income combined with negative overhead amount to a large impact (Burtles and Noakes-Fry, 2016).
An example of risk that I can think of is the idea of calculating cost of loss in a healthcare setting. During this pandemic of Corona Virus there has been a shortage of PPE, and also employees. Labor or staffing costs, and the costs of materials for the PPE has resulted in a loss. Preventing this type of disaster from occurring again I think would be helpful if we used the Qwik Risk assessment tool that states according to Burtles and Noakes-Fry (2016) to plot our perceived risks against probably and impact, we can determine the severity for next time (Burtles and Noakes-Fry, 2016). Prevention is important when evaluating risk.
