The paper “ Modern Risk Management” is an actual example of a finance & accounting coursework. This essay portrays the components of modern risk management and delves into details about how these requirements can be implemented in an organization in preparation to combat risk and safeguarding the operations of an organization should an incident that can potentially cause a disruption in the normal activities of an organization to occur. Risk management in the modern world has taken equal if not more important in the running of organizations that finance and resources management have enjoyed for many many years. The essay briefly describes what a risk management program is and in-depth explains how security risk management, crisis management, and contingency planning can be developed and implemented in a modern risk management program.
The essay also examines who in an organization is vital in the formulation of a risk management team and outlines what their roles in the team are and why it is important to include them. Risk management can be defined as an attempt to identify and then manage the threats that could have a severe impact or potentially bring down an organization.
In general terms risk management generally involves reviewing the operations of an organization, identifying the potential threats to an organization and assessing the likelihood of those threat occurring, and lastly taking appropriate action to address threats which are the most likely to occur (Bateman, 2006). The world has quickly moved from the old times when risk management was merely thought of as a matter of securing the most appropriate or right insurance. Traditionally, insurance coverage normally came in quite standard packages, so people had a tendency to not give risk management the serious attention it needed.
As the world has developed over time, that kind of impression about risk management has undergone a dramatic change. Recent times have seen a major increase in rules and regulations in organizations, lawsuits from employees, and more reliance on key resources, hence risk management is rapidly becoming a management practice that has the same kind of importance given to areas such as financial and resources management (Myers, 2002).
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