Case StudyInformation Assurance Systems And Risk Assessment ModelThe Social ContextIntroductionRisk Assessment ModelRisk, in case of varied operational decisions, is seen as a focus of single determinants of behaviour arising from risk theories. (Stephenson, 2004) Various unresolved contradictions can be reconciled by examining the usefulness of placing risk propensity and risk proportion in a more central role than has been previously recognised through effective risk assessment programs. Based on such analysis, it is believed that the propensity of risk dominates both the actual and perceived characteristics of the situation as a determinant of risk behaviour.
(Stephenson, 2004) Such an observation can safely justify the finding that suggests that apart from being central to any and every business or organisation, risk is something that entrepreneurs in general, are averse to. This can be attributed to the fact that at the end of the day, any loss of information has far reaching implications of its own and is deeply rooted in the genesis of risk taking and management. Coming back to the issue of the risk averse nature of businesses in context of the XYZ organisation, the one question we need to ask before proceeding any further is whether mere risk assessment is enough to act as a strong foundation for resolving all those difficulties arising out of risk management in case of information management and assurance systems.
The answer is, no. And more and more organisations in the health care arena are beginning to recognise this basic premise, which has led to creativity in the sphere of risk management strategies. It has become necessary therefore, to keep reinventing the methods and strategies to be used in order to overcome the perils enumerated above, in a timely and cost effective manner.
(Brussin, 2006)Another creative aspect attributed to the entire gamut of activities concerning risk management in this sphere adheres to the notion of utmost good faith that has been lately used to expand the protection for the insurer from pre-contractual fraud to include post-contractual fraud as well. This works in the benefit of the insured, who is saved from the abyss of financial loss, as well as the insurer, who is saved from parting with the sum assured upon occurrence of such a loss, therefore subjugating both parties to complete protection in an aspect that was earlier a matter of great confusion as well as debate. The mechanism of creative risk management extends to preliminary planning as well.
To be prepared and organised for the contingencies in advance will help the managers cope with them more easily. This can be further propagated by the use of timeliness and efficiency in the response stage with a reliable communication system, logistics and flawless coordination to boot. (Stephenson, 2004)For this purpose, in the XYZ organisation damage assessment and reporting should constitute of the preliminaries of restoration and restructuring apart from playing an important role in the formulation of a crisis management plan.
Since crises threaten the strategic objectives of the XYZ organisation, crisis management has been structured so as to work under the foresight of strategic management. This is one of the major trends that are seen to be emerging in the field of prioritising control of crisis to facilitate eventual risk management.