The paper “ Risk Management Process – Planning, Hazard Identification, Risk Analysis Assessment, Risk Control, Monitoring and Review, Brainstorming” is an excellent variant of coursework on management. Each activity embarked by the organization entails a certain level of risk and hence organizations must take steps to manage the risk through anticipation, understanding and deciding on whether and how to manage it. Risk management is the methodical application of administrative strategies, practices, and measures in a bid to establish the framework, identification, scrutiny, assessment, treatment, evaluation and communication of risk. According to Michael, (2010), the process involves communication and consultation with stakeholders, monitoring and review and setting up controls against risk.
This paper describes the ideal risk management process that every organization should adopt in order to effectively manage risk and hence help it to be more efficient hence increasing its likelihood of achieving its objectives. The paper will also describe the various risk identification tools with the aim of helping organizations become better risk managers. 2.0 The risk management processIn order to prevent undesirable occurrences in the organization and hence help the organization achieve its objectives in a timely manner, it is essential that organizations adopt an effective risk management process and strategy (Sa. gov. au).
Management of risk entails a number of steps that are depicted in figure 1.2.1 Step 1: PlanningIn order for risk management to be effective, there should be careful selection of the people to be involved in the process. Barton, (2001) states that the team so constituted should then gather relevant information pertaining to the process and establish the risk criteria / the acceptable level of risk for the workplace.
The team should agree on the risk criteria before commencing the process and set the acceptable level within which to assess risk and determine the kind of actions to be taken in controlling risks. The team also needs to determine the potential likelihood of risk and its magnitude of consequences and hence enable the organization to always be prepared in terms of cost and means of controlling the risk. Example: A mining company’ s risk management team could consist of department heads, production supervisor and a miners’ representative and should gather all information legal or technical regarding workers’ health and safety.
The team should then agree on the risk context and criteria (the accepted level of exposure) before proceeding to identify risks. 2.2 Step 2: Hazard identificationIn relation to all the hazards identified, the risk management team needs to identify what is likely to happen, how and why it could happen according to Keizer, (2002). This calls for the team to review all the relevant information gathered in the planning stage and also conducts an actual visit to the workplace to observe what is happening and for risk clues and talk to employees on what risks they might be exposed to.
This will enable the team to come up with an all-inclusive listing of hazards that each section of the organization could be exposed to. It would be advisable for the team to have a checklist that will ensure the identification and documentation of every hazard. Example: The team could identify the following as the hazards faced by workers in a mining company; mine wall failures, vehicle collisions, suffocation, gas poisoning, collapsing roofs and gas explosions.
ACITIA (2009). AS/NZS ISO 31000:2009, Retrieved from; http://www.treasury.act.gov.au/actia/RMISO.htm
Ana, M. (2012).Modern methods of risk identification in risk management, International Journal of Academic Research in Economics and Management Sciences, 1 (6), 67-70.
Barton, T. (2001). Risk Management, London, Rutledge.
Keizer, N. (2002). Project risk management in the engineering construction industry. International Journal of project management, 22(1),15-61.
Michael, U. (2010). Risk management: Strategies for Reaction and response, Oxford, Oxford University Press.
Sa.gov.au (2013). Risk management, Retrieved from; http://sa.gov.au/subject/Community+support/Volunteering/Information+for+or ganisations+that+involve+volunteers/Managing+volunteers/Risk+management