Different Perspectives for Risk Management

Different Perspectives for take a chance precaution1 Purpose essay this is defined as the combination of the probability of an event and its consequences. In all types of undertaking, there is the potential for events and consequences that constitute opportunities for benefit (upside) or threats to success (downside). Risk Management is increasingly recognised as being matter toed with both positive and negative aspects of risk. Therefore this policy considers risk from both perspectives.Risk management is a central part of the B W deeds Hire and Sales Ltd st sum upgical management. It is the process whereby we methodically address the risks attaching to their activities with the goal of achieving sustained benefit at heart each activity and across the portfolio of all activities. The focus of good risk management is the identification and treatment of these risks. Its objective is to add maximum sustainable observe to all the activities of the organisation. It marshals the u nderstanding of the potential upside and downside of all those factors which can affect the organisation. It increases the probability of success, and reduces both the probability of failure and the uncertainty of achieving our overall objectives.2 ProcessThe risks facing an organisation and its operations can result from factors both external and internal to the organisation. Risk identification is the process whereby B W Plant Hire and Sales Ltd sets out to identify its exposure to uncertainty. Risk identification is approached in a methodical way as part of the annual strategic refreshen process to ensure that all significant activities within the organisation have been identified and all the risks flowing from these activities also defined. All associated volatility think to these activities is identified and categorised. Business activities and decisions are classified asStrategic These concern the long-term strategic objectives of the organisation. They can be affected by such areas as capital availability, sovereign and political risks, legal and regulatory changes, reputation and changes in the physical environment.Operational These concern the day-today issues that the organisation is confronted with as it strives to deliver its strategic objectives. pecuniary These concern the effective management and control of the finances of the organisation and the effects of external factors such as availability of credit, foreign exchange rates, interest rate movement and other market exposures.Knowledge Based These concern the effective management and control of the knowledge resources, the production, protection and communication thereof. External factors might complicate the unauthorised use or abuse of intellectual property, area power failures, and competitive technology. Internal factors might be system malfunction or injustice of key staff.Compliance These concern such issues as health safety, environmental, trade descriptions, consumer protec tion, data protection, employment practices and regulatory issues.As part of the annual strategic review each identified risk is described in a structured format is necessary to ensure a comprehensive risk identification, description and estimate process. Risk estimation is assessed as high, medium or low using the guidelines shown in the tables below.Risk identification Categorisation1. Name of Risk2. Impact of RiskQualitative description of the events, their size, type number and dependencies3. Quantification of RiskProbability and Significance4. Potential Action for ImprovementRecommendations to reduce riskRisk Consequences Threats and OpportunitiesHigh monetary impact on the organisation is likely to exceed 250,000Significant impact on the organisations strategy or operational activitiesSignificant stakeholder concernMedium financial impact on the organisation likely to be between 150,000 and 350,000Moderate impact on the organisations strategy or operational activitiesModera te stakeholder concern grimFinancial impact on the organisation likely to be less that 150,000Low impact on the organisations strategy or operational activitiesLow stakeholder concern