The paper "Principal Steps in Risk Management" is a great example of management coursework. Risk management entails assessment, examination and the initiation and mitigation of uncertain hazards in investment decisions. When an investor foresees possible losses from an investment, then he ought to take the necessary action at any time. Poor risk management practices in a company lead to adverse consequences for the companies and individuals collectively. For instance, the recession in the year 2008 was because of poor credit risk management practices by the existing financial firms (Talbot 2013). To review this, risk management is a two-sided process that determines the risks that exist in certain investment and how best these risks can be mitigated per the objectives of the investment.
Risk management is prevalent in the financial world. For example, it can occur when an investor gets low-risk government bonds over a more risky corporate debt. When a finance manager hedges the currency exposure with currency derivatives and when a bank carries out a credit check on a party before giving them an individual line of credit (Talbot 2013). Assessment of the risk is a crucial step in ensuring the workers are protected in the workplace as well as the business.
This helps the employer in ensuring the laws governing customer and employees are adhered to. The risk management process assists the employers to focus and deal with the risks that can cause real harm in the workplace and the various ways in which the risks can be mitigated. The management can adopt sometimes straightforward procedures. This is to ensure workers and customers are safe, for instance, spillages can be cleaned up immediately to avoid slipping, closing of cupboards and drawers to be done to ensure people do not trip.
These procedures do not require many resources to adopt and will ensure that the workers are protected (Bonham 2008). The law notes not necessarily expect the employer to do away with all the risks since this is impossible. But the employer should protect the employees and all the other parties in the premises as reasonably practicable as possible. Assessment of risk is trying to assess what, in the work environment, can harm people so that you as the employer can see whether you have taken the necessary procedures to prevent harm.
Workers in the work environment have the right to be protected from the risk of harm due to the failure of the managers not adopting the control procedures that are reasonable. The risks of accidents and illness can lead to loss of output for the business and can ruin lives, machines in the workplace are damaged and increase in insurance costs due to court processes. As the CEO of a company, you need to know the risks that are prevalent in the workplace and establish the correct procedures on how to mitigate them (Epstein 2014). As the CEO of a company, you need to take various steps in order to ensure safety in the workplace.
The steps include: Identification of the risk Firstly, find out how people can be harmed in the workplace if you are the CEO of the company it's simple to identify some of the hazards by some means. This is by moving and walking around the workplace, Asking employees, or their representatives about the safety in the workplace, observation of manufacturer's instructions regarding and the use of some equipment in the workplace.
Also, remember to think of the long-term risks to towards better health for the workers. For instance, if you expose your workers to excessive noise of harmful substances, they will lead to long-term illnesses in the future Bonham 2008)
Bonham, S. S. (2008). Actionable strategies through integrated performance, process, project, and risk management. Boston: Artech House.
Coleman, L. (2009). Risk strategies: Dialling up optimum firm risk. Farnham: Gower.
Epstein, M. J., & Rejc, B. A. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. San Francisco: Berrett-Koehler Publishers.
Hopwood, D., & Thompson, S. (2006). Workplace safety: A guide for small and midsized companies. Hoboken, NJ: Wiley.
Pardy, W. G., & Andrews, T. (2010). Integrated management systems: Leading strategies and solutions. Lanham: Government Institutes.
Reuvid, J. (2010). Managing business risk: A practical guide to protecting your business. Philadelphia, PA: Kogan Page.
Talbot, J., & Jake man, M. (2013). The security risk management body of knowledge. Hoboken, N.J: Wiley.