Methods of Risk Management in Anti-Terrorism - Case Study Example

FUTURE TRENDS IN RISK MANAGEMENT . by Course Professor Institution City and state Date Future Trends in Risk Management Introduction Risk management is the process which integrates identification of risks, assessment of risk, and formulation of strategies to manage them and risk mitigation using the available managerial resources. Risk management notably focuses on risks ranging from legal and physical causes such as natural disasters, accidents and death (Chew 2013). Risk management aim to minimize different risks to a domain pre-selected to an acceptable level. Threats related to risk is mainly caused by the environment, humans, technology, politics and organizations. Recently, risk management has become applicable in all the aspects of business and corporate world incorporated into planning, safety, finance and project risk management. According to @ risk management are the assessment and the mitigation of potential factors that are perceived to pose threat to an organization, institution or business emerging from whatever origin. Background In the current corporate world, it is notable that all environments have become competitive and dynamic. Therefore, correct strategic decisions are required to ensure that appropriate direction is taken. In human situations, private and public sectors and daily activities, it is apparently that risk present and unavoidable. Risk is in these contexts varies depending on outcome characteristics mainly neutral or adverse. It is basically the uncertainty surrounding future events and its outcomes (Frenkel, Hommel, Rudolf, & Duffey 2005) . In addition it entails consequences, impacts of specific events that have the potential of determining or influencing accomplishment of certain targets or objectives. Globally, organizations in the context of risk management are useful in projects and considerations predetermined which may result into unwanted consequences. It is now a current trend that organizations have shifted focus on the effective use of information to achieve their mission and objectives. Thus information system of any organization play important role in effective and smooth running of operations. Regarding protection and sharing of information, national security, public and private sectors are now focusing on establishing risk management for terrorism. It is notable that terrorism is an evolving risk, thus governments have established anti-terrorism agencies to asses and mitigate risks resulting from terrorism activities. Terrorism evolution has been attributed to technology advancement and increased capabilities of terrorism groups. Terrorism groups are familiar with the existing anti-terrorism strategies as well as their operation methods thus complicating further effectiveness of antiterrorism strategies. These constant changes have complicated corresponding approaches and tool that anti-terrorism agencies use in addressing terrorism risks. Methods of risk management in anti-terrorism In regard to anti-terrorism, security of information in any government, organization or institution plays vital role when it comes to risk management. Security information is important for protection of these entities from terrorism attacks that can adversely affect them. According to Frenkel et al (2005), an effective risk management process should have a successful information security program embedded in the underlying programs and strategies (Frenkel et al. 2005). Information technology as a tool needs to be incorporated in the organizational risk management process. Incorporation of information technology (IT) in organizational risk management should be regarded as a vital management function for its management teams and the organization at large. The corresponding methods to risk management in anti-terrorism concerning protection of information through effective information technology systems entail reactive and proactive approaches. Reactive approach is suitable for terrorism risks that have already occurred. This method enables organizations to analyze causes of terrorism and security breaches to avoid repetition and coming up with the possible causes of the underlying terrorism risk (Crouhy, Galai, & Mark 2000). Further, according to the U.S Government Accountability Office (2013), anti-terrorism agencies and organizations respond to these risks rationally applying information technologies and communication to determine their causes. This approach facilitates fast responds to such risks in the future. Risk management proactive approach is more effective in anti-terrorism with the incorporation of technology. Integration of information technology measures for enhancing security is put in place before any terror risk occurs. This approach is cheaper and effective in minimizing the likelihood of terror attack (Chew 2013). Organizational and agency managers should have these measures put in place from the beginning. Information is safeguarded to protect key assets through implementation of measures and controls aiming to minimize risks. This approach using advanced information technology is significant in reducing terrorism risks occurring in the future. Technology adoption rationale for risk management in anti-terrorism According to Crouhy et al. (2000), use of technology in risk management for anti-terrorism facilitates protection of human life and safety. It is argued that advance technologies incorporated in the established protection measures to prevent terrorism occurrence are notably effective. Computerization has increased vulnerability to terrorism risks thus effective IT measures should be introduced into information systems to enhance information security and effective implementation of reactive and proactive risk management approaches. Due to increase use of sophisticated technologies by terrorist groups, it is important for anti-terrorism agencies to control cyber damage by adopting technological tools to counter cyber-attacks. Therefore, it can be argued that risk management in anti-terrorism to control damage and minimize cyber-attack terrorism risks need to use technology to protect classified information and essential hardware components. Risk management studies provide that technology is vital in anti-terrorism risk management in the determination of risks and damage cause (Hopkin 2012, p. 58). With effective information technology communication systems, organizations or a state’s assets that are vulnerable to terrorism risks can be determined and appropriate measures put in place. This method for risk management is essential in the review of responses and states or anti-terrorism agency policies and strategies. This is important since terrorism is dynamic and keeps evolving. Other justification of using technology as a tool for anti-terrorism risk management is its capability to enhance special training to anti-terrorism staff equipping them with suitable and appropriate knowledge and skills in executing anti-terrorism operations (Hor, Ramraj, & Roach 2012). Technology enhances risk management establishment of effective internal control systems as well as easy periodic risk management evaluation measures. Flood Risk Basically, flood risk is ground water flooding, surface water flooding and ordinary watercourses flooding. It is notable that research on water flooding focuses on water quality issues, aspects of water quality problems, functional operations and the network of sewage. In the context of flood risk, notable flood risk aspects include: surface water flooding resulting into water pooling in low land areas. Groundwater flooding occurs when water found in underground rocks and soil flows above the surface and ordinary watercourse flooding. Sewer flooding occurs due to overflow of rain and sewage attributed to blockage or collapse of sewerage system (Schanze 2007, p. 64). Flood risk research provides an insight on the innovative new ways that facilitate planning, managing and overall understanding of flood risk. Risk management agencies and organizations have mainly focus their flood risk research on Flood and Coastal Erosion Risk Management. These researches notably benefit from wide scientific knowledge and use of current risk management tools and good practice. Flood risk researches seek to provide a guiding framework of managing flood risk adopting risk-based approach. Scholars notably articulate for involving local authority and rational decision making where necessary. Flood risk researches provide advice and recommend policies to government based on reliable information and data thus useful to flood risk management authorities. In addition, flood risk researches provide importance of collaborations support, good practice sharing benefits and knowledge-building in both local and national levels to empower local delivery in the context of flood risk management. Risk evaluation and analysis method Risk analysis is the identification of risk source, effect or consequence and the possible estimation of the consequence if no controls are put in place (Hopkin 2012). Risk evaluation involves comparison of the analyzed risk with the documented tolerable approved risks. The used risk matrices the tolerable risk is usually documented in risk matrix. The next step of evaluation is the determination of the protected risk if it is greater than the tolerable risk. In this scenario it is important to establish additional improvements and control measures (McNeil 2010, p.37). Risk management managers make decision on whether the risk is acceptable or unacceptable. Acceptable risks are risks that are sufficiently low and it is not considered cost effective. Secondly is when there exist an opportunity that surpasses the existing threat level. Risk is also acceptable if any consideration is unavailable. Risk evaluation also involves monitoring of accepted risks and periodically reviewed to ascertain the risk level of acceptability. Risk analysis methods Risk analysis methods facilitate in the identification of risk protection controls, estimating their effectiveness and the risk still existing with these controls in place. Risk analysis methods entail quantitative, qualitative and semi-quantitative methods. These methods are adopted depending on the risk, risk analysis purpose and the available information for analysis (McNeil 2010). It is notable that qualitative and semi-quantitative methods are mainly used for risk screening. Quantitative methods are used when making analysis for high risks. Quantitative and semi-quantitative methods make use of tools such as risk graphs, risk matrices and monographs in its analysis. It is notable that analysis of complex risks requires sophisticated methodologies and approaches. Conclusion In conclusion, risk management has becomes a key area of focus in the current corporate world. Organizations and agencies are able to recognize existence of risk, risk assessment, need to develop strategies to manage and minimize risk and mitigation of these risks. Risk management is essential in anti-terrorism as the risk involve are highly dynamic and evolve. Information technology integration is identified to be an important tool in the implementation of risk management in the context of anti-terrorism. Reactive and proactive approaches are suitable tools in the incorporation of technology in risk management. Flood risk research has been laid focus in the recent time focusing on the provision of risk management approached regarding flood risk management. Risk evaluation and analysis are important aspects in the risk management process in organizations. It is important to have suitable and appropriate methods for risk analysis and evaluation to ensure that risk management process is successful. References Chew, DH 2013, Corporate risk management. Columbia University Press, Columbia. Crouhy, M., Galai, D., & Mark, R 2000, Risk management, McGraw Hill Professional, London. Federal Emergency Management Agency 2003, Risk management series: Reference manual - to mitigate potential terrorist attacks against buildings. FEMA, New York. Frenkel, M., Hommel, U., Rudolf, M., & Dufey, G 2005, Risk management: Challenge and opportunity, Springer Science & Business Media, New York. Hopkin, P 2012, Fundamentals of risk management: Understanding, evaluating and implementing effective risk management. Kogan Page Publishers, New York. Hor, M., Ramraj, VV., & Roach, K 2012, Global anti-terrorism law and policy. Cambridge University Press, Cambridge. James, AD, 2006, Science and technology policies for the Anti-terrorism Era. IOS Press, Boston. McNeil, AJ 2010, Quantitative risk management: Concepts, techniques, and tools. Princeton University Press, Princeton. Schanze, J 2007, Flood risk management: Hazards, vulnerability and mitigation measures, Springer Science & Business Media, New York. U.S Government Acountability Office 2013, Combating terrorism actions needed to guide services' antiterrorism efforts at installations. Diane Publishing, New York. Read More