StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Most Appropriate Options for Treating Risks - Essay Example

Cite this document
Summary
The paper "The Most Appropriate Options for Treating Risks" is an outstanding example of a business essay. Risk Avoidance is the process of eliminating activities, exposures and hazards that have been deemed negative and can affect the processes in an organization. That is, it encompasses the set activities created by managers to avoid compromising events of an organization entirely…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.9% of users find it useful

Extract of sample "The Most Appropriate Options for Treating Risks"

The paper "The Most Appropriate Options for Treating Risks" is an outstanding example of a business essay. Risk Avoidance is the process of eliminating activities, exposures and hazards that have been deemed negative and can affect the processes in an organization. That is, it encompasses the set activities created by managers to avoid compromising events of an organization entirely.

Describe each of the following approaches to risk treatment and give one hypothetical example of their use

 

 

Risk Modification

This is a comprehensive plan laid out by organisations or managers that are intended to check or avert the severity of risks, hazards or challenges that organistions would have undertaken. The intention of these processes is to minimize the impact of risks on a given operation of business activity.

Consequence control

As already noted, businesses have inherent risks that have different consequences or effects on the operations of business activities. For instance, poor supply management is a risk associated with failure to mitigate key performance indicators. On that note, consequence control is the process of mitigating, minimizing or managing the impact of risks to the operations of businesses.

Accepting the Risk

The processes of accepting risks are tied to the understanding of risk management approaches in business operations. In that regard, accepting risk takes place in an organization when the cost of managing a given risk can be accepted, since the risk entailed may not be sufficient to warrant the additional cost that is needed to avoid the risk in question.

Hypothetical Example of their use

In the year 2003 one of the world's dairy food leaders, Parmalat group collapsed and entered into bankruptcy and this happened after management realized that billions of Euros were missing from the Company’s accounts. In such a case, risk avoidance would have been attained had the Parmalat group decided to create a channel where shareholders carried their oversight role in monitoring the Company’s progress. Risk modification on the other hand was the case where Parmalat group’s management structure was quite tight sealing loopholes that previously created risk. This way, the severity of risks was minimized. Thirdly, with regard to consequence control, the company the legal actions were extended to the bank officials who assisted the company to issue bonds and loans and investigation further established that the City group and Deutsche Bank were being pursued in relation to this fraud case. On the part of accepting risk, Parmalat had to use various wholly-owned entities among which included Bonlat in the Cayman Island subsidiary---which existed during the five final years and the holder of the Bank of America's false account.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Most Appropriate Options for Treating Risks Essay Example | Topics and Well Written Essays - 250 words, n.d.)
The Most Appropriate Options for Treating Risks Essay Example | Topics and Well Written Essays - 250 words. https://studentshare.org/business/2086337-risk-manage
(The Most Appropriate Options for Treating Risks Essay Example | Topics and Well Written Essays - 250 Words)
The Most Appropriate Options for Treating Risks Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/business/2086337-risk-manage.
“The Most Appropriate Options for Treating Risks Essay Example | Topics and Well Written Essays - 250 Words”. https://studentshare.org/business/2086337-risk-manage.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Most Appropriate Options for Treating Risks

Insurance as Risk Financing Strategy

While the multiple global locations present diverse business opportunities to organizations, they also come with their fair share of diverse financial risks.... It is such risks that most organizations choose to finance through insurance.... Due to the regional and cultural diversity of different business environments however, it is also evident that the financial risks are diverse and oftentimes call for different strategies of managing the same....
11 Pages (2750 words) Literature review

Strategy in the Public Sector - Kennedy School of Government and Harvard Business School

Before the plan was executed, there was no appropriate research which exposed the problem to the possibility of failure.... … The paper "Strategy in the Public Sector - Kennedy School of Government and Harvard Business School" is a great example of a management case study....
13 Pages (3250 words) Case Study

Sustainability Development for Accra Hotel

The risks have been identified, and contingency measures are in place to ensure the project objectives and aims are achieved.... Some of the risks include lack of enough resources, changes in scope, ineffective implementation of the proposal and challenges in obtaining feedback from other stakeholders....
8 Pages (2000 words) Case Study

The Insurance Market, Premiums and Loss Experience

This is through the creation of a general understanding of the most pertinent risks that the businesses face.... This helps in saving the company from losses that arise with the occurrence of the risks that had been insured against.... This article, therefore, focuses on the development of techniques to manage the risks.... This can be through such things as the transferring of the risks among other risk management processes....
12 Pages (3000 words) Coursework

Managing Contracts and Risk

… The paper "Managing Contracts and Risk" is a brilliant example of an assignment on management.... The first requirement for a valid contract is an agreement between two parties (Educate-Em Business School Pty Ltd and, John Dory and Anne Chovie).... The agreement is usually based on the rule of an offer and acceptance (Latimer 2011, p....
10 Pages (2500 words) Assignment

Strategy and Change as Essential Ingredients that Foster Enhanced Performance

most importantly, organizational leaders should learn to manage such new changes while creating a healthy environment to foster good performance.... … The paper 'Strategy and Change as Essential Ingredients that Foster Enhanced Performance' is a perfect example of a business term paper....
15 Pages (3750 words) Term Paper

Risk Management Plan for the Department of Education, Employment and Workplace Relations

Major issues like Security, OH&S and Changes to Legislation are an embedded part of the department which is the most significant section in all Government decisions and policies.... Risk management plan in any organization plays a significant role in managing the business-related risks.... Risk management plan in any organization plays a significant role in managing the business-related risks.... The Department is accountable to the Australian Government, Parliament and to the public for all issues including risks and the main objectives, such as the development of national economic potential, an increase of workforce participation, shareholders involvement and being innovative....
12 Pages (3000 words) Case Study

Appropriate Terms of Trade

The journey entailed whether over air, land, or sea may introduce particular risks and costs, which can be lessened by appropriate dispatch methods, insurance coverage, proper packaging instructions, and by considering the responsibilities and the roles of the involved parties in the transportation chain to final delivery.... … The paper "appropriate Terms of Trade" is an outstanding example of marketing coursework.... The paper "appropriate Terms of Trade" is an outstanding example of marketing coursework....
15 Pages (3750 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us