The paper 'Main Elements of the Hazard Identification and Risk Management Process" is a good example of management coursework. The business world is full of uncertainties. These uncertainties greatly predetermine business stability. Businesses should have continuity planning so that in an event of unforeseen hazard they can be able to rise up. This then calls for hazard/ risk identification and risk management process. The risks and uncertainties that business phase can originate from natural factor or manmade factors. Moreover, they can be tied to environmental factors, economic factors and socio-political factors. The aviation industry has various associated hazards such as noise and air pollution as a result of the extreme noise and fossil fuel combustion.
The next hazard is the possibility of being grounded due to political instability and economic recession. Other risks/ hazards are the possibility of failures and thus causing death in extreme conditions which translates to huge compensation. This paper lists and describes the main elements of the hazard identification and risk management process. In addition, it includes consideration of how the effectiveness of risk management controls can be measured in an airline. 2.0 Hazard Identification There are various risks associated with the aviation industry.
The key obstacles are how to conceptualize model and visualize risks, define and monitor the risks’ impacts, analyze the probability of risk occurrence and mitigate the negative impact of risks (Stewart and Melchers1997, p. 1, 6 and 7). One key component of risk management is business continuity planning. Risks management entails the protection of the firm’ s valuable components from a threat. The protection can be in term of physical security, back up of data, and insurance.
Risk management help in mitigating of operational risks associated with a certain business (Smith, 2003, p. 49). The assessment is a great deal helps firms detect areas of concern so as to prioritize the use of resource in order to maximize response and recovery efforts. The process exposes operations that are subject to a single point of failure. Risk assessment is one of the key components in risk management. Risk assessment entails the predetermination of the qualitative and quantitative value of risks connected to a situation and a likely threat or hazard.
A qualitative approach to risk assessment entails calculations of two components of risks, the magnitude of the potential loss and the probability for loss occurring. In the engineering field assessments are done especially in relation to the threat to life, social impacts, a threat to the environment or machine functionality. Risk assessment can also be carried out in relation to financial stability and business recovery plan, and information system vulnerability/ security (Hurst, 1998, p. 42 and 43). An organization can estimate possible loss as a result risks, threats or vulnerability of an asset.
This kind of estimation can be achieved through a quantitative risk assessment of calculating annualized loss expectancy. The results from the assessment can then be used by an organization to justify its expenditure to implement measures of protecting that asset (LaGoy, 1994, p. 2). One key component of risk management is business continuity planning. For the realization of business continuity in an event of adverse situations, there is a need for business continuity policy/plan (Hiles, 2004, p. 2, 3, 4 and 5). Thus, within the context of project management, risk assessment can be applied to guarantee continuity in the event of uncertainties occurring.
The key objective of business continuity planning is to guarantee a competitive advantage and value system integrity in the event of these threats. These adverse conditions include vandalism, theft, fire, earthquakes and floods. In more detailed and precautionary approach, any instance that might curtail or threaten organisations operation should be treated as adverse condition worth planning for. The adverse effects can be felt in supply chain interruption (Blyth, 2009, p. 39). Safety management or risk and hazard identification can be understood in two paradigms.
The first is the risk that is posed to that industry or the risk it poses to other sectors.
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