Essays on Relationship between Power and Risk Management in Organizational Context Case Study

Download full paperFile format: .doc, available for editing

The paper “ Rеlаtiоnshiр bеtwееn Роwеr аnd Risk Mаnаgеmеnt in Оrgаnisаtiоnаl Соntехt” is an impressive example of the case study on management. Organizations will always be exposed to risk because of the dynamic environment in which they are operating. This means that the management of organizations must be prepared to deal with any kind of risk; in fact, everyone in the organization must be aware of the kind of risk that their organization is likely to encounter in order to identify the risk and deal with it. But how effective this will be achieved depends on the distribution of power within the organization to deal with the perceived risks.

Different organizations have different organizational structures and these structures determine how power is spread among different departments or individuals and hence how prepared the different organs or individuals are to deal with risk. If the structure of the organization is such that every organ or individual is empowered to identify the risk areas, then it will generally be easier for such an organization to perceive the various risk areas and find ways to deal with the specific risks.

On the other hand, organizations in which power is located in a central area seem to be biased since the identification of risks will always be a province of a particular organ or department – meaning that some risks may not be noticed in time to avert them or deal with them effectively. Such distribution of power also implies that staff in other departments will be hesitant to report any risks they perceive since it will always be deemed that identifying risks is not within their line of duty.

In recognition of such differences, this essay discusses the relationship between power and risk management in the context of organizational settings. DEFINITION OF TERMSPowerPower is a term used to describe the potential capacity of a person or a department to persuade other people or other departments to act as they are directed (Daft 2009, p. 497). It can also be defined as the capability to accomplish objectives or outcomes that holders of power wish to meet (Daft 2009, p. 497).


Appelbaum, S H & Fewster, B M 2004, ‘Human resource management strategy in the global air line industry – a focus on organisational development’, Business briefing: Aviation strategies: Challenges and opportunities of liberalization, pp. 70-75, viewed 05 December 2012

Bal, V, Campbell, M, Steed, J & Meddings, K 2008, ‘The role of power in effective leadership’, A CCL Research White Paper, viewed 05 December 2012

Barclays 2012, ‘Risk’, viewed 06 December 2012

Buchanan, L 2006, ‘A brief history of decision making’, Harvard Business Review, January 2006, viewed 06 December 2012

Daft, R L 2009, Organization theory and design, 10th edn, Cengage Learning, Stamford, Connecticut.

Dickson, T J & Terwiel, A 2011, ‘The organisational context of risk management’, in T J Dickson & T L Gray, Risk management in the outdoors: A whole-of-organisation approach for education, sport and Recreation, Cambridge University Press, Cambridge, chapter 4, pp. 69-90.

Epstein, M J & Buhovac, A R 2006, ‘The Reporting of Organizational Risks for Internal and External Decision-Making,’ Management Accounting Guideline, viewed 06 December 2012

Fairholm, G W 2009, Organizational power politics: Tactics in organizational leadership, 2nd edn, ABC-CLIO, Santa Barbara, California.

GSK 2012, ‘Risk management and compliance’, viewed 06 December 2012

Jain, N K 2005, Organisational behaviour, volume 1, Atlantic Publishers & Distributors, New Delhi.

Kavaler, F & Spiegel, A D 2003, Risk management in health care institutions: A strategic approach, 2nd edn, Jones & Bartlett Learning, Burlington, Massachusetts.

Kwon, W, Clarke, I & Wodak, R 2009, ‘Organizational decision-making, discourse, and power: integrating across contexts and scales’, Discourse & Communication, Vol. 3, No. 3, pp. 273-302, viewed 06 December 2012

Longenecker, J G, Moore, C W, Palich, L E & Petty, J W 2006, Small business management: An entrepreneurial emphasis, volume 1, 13th edn, Cengage Learning, Stamford, Connecticut.

Murray, P, Poole, D & Jones, G 2006, Contemporary issues in management and organisational behaviour, Cengage Learning Australia, Melbourne.

Robbins, S P 2009, Organisational behaviour in Southern Africa, 2nd edn, Pearson South Africa, Johannesburg.

Talent Intelligence n.d, ‘Leadership risk management’, viewed 05 December 2012

Vallabhaneni, D 2009, What's your MBA IQ: A manager's career development tool, New York.

Wang, C 2011, Managerial decision making leadership: The essential pocket strategy book, John Wiley & Sons, New Jersey.

Waring, A E & Glendon, A I 1998, Managing risk: Critical issues for survival and success into the 21st century, Cengage Learning EMEA, Stamford, Connecticut.

Waters, C D J 2007, Supply chain risk management: Vulnerability and resilience in logistics Kogan Page Publishers, London.

Download full paperFile format: .doc, available for editing
Contact Us