Risk Management
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- Category: Politics: Economics
- Date Submitted: 05/09/2014 04:59 AM
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Risk Management
Melissa Loparo
Bus 401
Prof. Richard Burke
April 19th, 2014
Risk Management
All organizations face some kind of risk in general business operations all the time. The main objective of risk management is to increase owner’s and shareholder’s value now and into the future. While examining and comparing some common steps in risk management that can be helpful to many organizations, one will be able to see how business owners can increase wealth and make their companies run smoother and their investors happier.
First, according to (Ward & Humphries, 2009), executives that ignore threats from their competitors run the risk that their organizations could lag behind and end up losing market share. If a company starts to lose market share, then ultimately it ends up hurting all investors in the business and that is why risk management techniques are so important. In reviewing the articles by Dr. Kallman and Ward & Humphries, there were several similar things mentioned that organizations should do to maximize growth for their investors and stakeholders.
Some of those techniques were to develop a plan as to where the business is going, like a strategic plan with certain objectives defined with performance targets in place. By doing this it puts everyone in the organization on the same page. Projects are then considered according to the business plan. Also, a prioritized list of projects that have been weighted for strategic fit, business value, resources required and the complexity should be evaluated by management in order to determine what is in the best interest of the organization states (Ward & Humphries, 2009).
The some other techniques that (Kallman, 2008) states are important are first duplication which is to create a backup copy of assets at risk. Duplication can reduce the impact of the risk of loss, and help to reduce valuable time. Second, is diversification, and both articles suggest this because when a firm is...
Melissa Loparo
Bus 401
Prof. Richard Burke
April 19th, 2014
Risk Management
All organizations face some kind of risk in general business operations all the time. The main objective of risk management is to increase owner’s and shareholder’s value now and into the future. While examining and comparing some common steps in risk management that can be helpful to many organizations, one will be able to see how business owners can increase wealth and make their companies run smoother and their investors happier.
First, according to (Ward & Humphries, 2009), executives that ignore threats from their competitors run the risk that their organizations could lag behind and end up losing market share. If a company starts to lose market share, then ultimately it ends up hurting all investors in the business and that is why risk management techniques are so important. In reviewing the articles by Dr. Kallman and Ward & Humphries, there were several similar things mentioned that organizations should do to maximize growth for their investors and stakeholders.
Some of those techniques were to develop a plan as to where the business is going, like a strategic plan with certain objectives defined with performance targets in place. By doing this it puts everyone in the organization on the same page. Projects are then considered according to the business plan. Also, a prioritized list of projects that have been weighted for strategic fit, business value, resources required and the complexity should be evaluated by management in order to determine what is in the best interest of the organization states (Ward & Humphries, 2009).
The some other techniques that (Kallman, 2008) states are important are first duplication which is to create a backup copy of assets at risk. Duplication can reduce the impact of the risk of loss, and help to reduce valuable time. Second, is diversification, and both articles suggest this because when a firm is...