Essays on Managing Change by Managing Risk Literature review

Download full paperFile format: .doc, available for editing

The paper “ Managing Change by Managing Risk” is an earnest example of the literature review on management. The change process is a choice, but not so are risks. Notably, when an organization chooses to change, it also chooses (sometimes unknowingly) to undertake the management of risks that occur in the change process (Bernstein 1996, p. 383). As many organizational leaders would agree, the change process is often volatile and unpredictable, hence necessitating an organization to have the skills needed to keep the volatility under control while making the change process clearer. As indicated by Kutzavitch (2010, p.

3), change-related risks depend on the complexity of the change; the perception that the organization (and individuals therein) have regarding their contribution to the change outcome; and the willingness or preparedness of individuals and the organization to change. A complex change process is likely to present more risks to the organization, while a detached attitude by employees or the management may also present additional risks to the organization (Vidal & Marle 2008, p. 1108). The attitude that employees or other stakeholders show towards the proposed change is largely influenced by their perceptions regarding potential gains or losses.

In cases where the workforce is not ready for change either because they are unwilling or not fully prepared, the risks are even more pronounced. For change to be successful therefore, it becomes imperative for the managerial and/or leadership functions in organizations to identify ways through which they can manage risks effectively. DeLoach (2004, p. 29) for example observes that amidst changing circumstances in organizations, leaders must simultaneously be in a position to confidently assure investors, directors, and other stakeholders’ about their capacity to handle risks.

Similar sentiments are expressed by Kennedy (2008, n. pag. ) who observe that much as audit firms may be contracted to determine the risks that a firm faces both internally and externally, it remains the management’ s prerogative to keep pace with emerging enterprise risk management practices and utilize them to manage change in their respective organizations. Following DeLoach’ s (2004, p. 29) argument, it is therefore arguable that an organization’ s capabilities in handling change can be gauged by how well it manages risks.

References

Bernstein, P L 1996, Against the gods: The remarkable story of risk, John Wiley & Sons, New York.

Clausewitz, C 1976, On War, In Howard, M., & Paret, P (Eds.), Princeton University Press: Princeton, NJ.

Committee for Sponsoring Organisations 2004, ‘Enterprise risk management framework’, Committee of Sponsoring Organizations of the Tread way Commission, American Institute of Certified Public Accountants, NY.

Crawford, M, & Stein, W 2004, ‘Risk management in UK local authorities: the effectiveness of current guidance and practice’, International Journal of Public Sector Management, vol.17, no.6, pp. 498-512.

DeLoach, J 2004, ‘The new-risk imperative- an enterprise –wide approach’, Handbook of Business Strategy, vol. 5, no.1, pp. 29-34.

Emblemsvåg, J, & Kjølstad, L E 2002, ‘Strategic risk analysis- a field version’, Management Decision, vol. 40, no. 9, pp. 842-852.

European Foundation for Quality Management 2005, EFQM Framework for Risk Management, European Foundation for Quality Management, Brussels.

Hillson, D, &Murray-Webster, R 2007, Understanding and managing risk attitude, Gower Publishing, Burlington, Vermont.

Holcomb, J F 2004, ‘Managing strategic risk’, chapter 9, viewed 06 Dec. 2012,

Holtz, N 2007, Managing strategic risk in China’s unpredictable automotive market- the saga of Tian River Motors, Deloitte Touche Tohmatsu, pp. 1-16.

Jaafari, A 2001, ‘Management of risks, uncertainties and opportunities on projects: time for a fundamental shift’, International Journal of Project Management, vol. 19, pp. 89-101.

Kaplan, R S, & Mikes, A 2012, ‘Managing risks: a new framework’, Harvard Business Review-The Magazine, viewed 06 Dec. 2012

Kennedy, P 2008, ‘Enterprise risk management: effective ERM practices’, Strategy & Leadership, vol.36, no. 3, viewed 06 Dec. 2012

Kubitscheck, V 2001, ‘Business discontinuity - a risk too far’, Balance Sheet, vol.9, no.3, pp. 33-38.

Kutzavitch, K 2010, ‘change management issues and risk mitigation strategies for the enterprise’, Mastech White Paper, viewed 06 Dec. 2012

March, JG & Shapira, Z 1987, ‘Managerial perceptions on risk and risk taking’, Management Science, vol. 33, no. 11, pp. 1404-18.

Narayanan, V K, Douglas, F L, Guernsey, B, & Charnes, J 2002, ‘How top management steers fast cycle teams to success’, Strategy & Leadership, vol. 30, no. 3, pp. 19 – 27.

Olsson, R 2008, ‘Risk management in a multi-project environment: An approach to manage portfolio risks’, International Journal of Quality & Reliability Management, vol. 25, no. 1, pp. 60 – 71.

PMBOK 2004, A Guide to the Project Management Body of Knowledge, Project Management Institute, Newtown Square, PA.

Scarborough, M S 2011, ‘understanding and managing the risk of change’, Global Knowlegde White Paper, viewed 06 Dec. 2012

Scott, J 2002, ‘Economic capital: at the heart of managing risk and value’, Balance Sheet, vol.10, no.3, pp. 10-13.

Scott, J 2002, ‘Economic capital: at the heart of managing risk and value’, Balance Sheet, vol. 10, no.3, pp. 10-13.

Simon, R 1999, ‘How risky is your company?’ Harvard Business Review, vol. 77, no. 3, pp. 85-94.

Strange, W 2012, ‘Interview with Rupert Merson, author of Guide to Managing Growth’, Strategic Direction, vol. 28, no.1, pp. 35-36.

Tummala, V MR, & Burchett, J F 1999, ‘Applying a risk management process (RMP) to manage cost risk for an EHV transmission line project’, International Journal of Project Management, vol. 17, no. 4, pp. 223-35.

Vidal, L, & Marle, F 2008, ‘Understanding project complexity: implications on project management’, Kynernetes, vol.37, no.8, pp. 1094-1110.

Ward, S, & Chapman, C 2003, ‘Transforming project risk management into project uncertainty management’, International Journal of Project Management, vol. 21, pp. 97-105.

Weller, N 2008,’ strategic and operational risks’, Student Accountant, September, pp. 34-35.

Williams, R, Bertsch, B D, van der Wiele, T, van Iwaarden, J, Smith, M, Visser, R 2006, ’Quality and risk management: what are the key issues?’ The TQM Magazine, vol. 18, no. 1, pp. 67 – 86.

Zinn, J O 2008, ‘Everyday strategies for managing risk and uncertainty’, viewed 06 Dec. 2012

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