Risk Management Plan Part A: Reflection - Assignment Solution

Part. A.  Student’s learning based on the presentations of other students.  

Risk can be termed as a potential obstacle which could affect the performance of the organization or an individual. Risks are always associated with any level and type of operational procedures. Going through the provided presentations I have perceived that mismanagement of risk or ignorance of risk factors may not only results in financial losses but also affects the organization’s status in the long run. Also based on the type of the operational procedures and stakeholders involved varied risk management strategies must be implemented and followed. 

Risk identification and risk appetite are the main components that need to be analysed for the implementation of an effective risk management strategy. Main theme of risk identification is to identify and classify the risk that could affect the performance or the outcome of any operational procedure (Molenaar, Anderson, Schexnayder 2010). Risk identification enables the organization to visualize the obstacle it might counter during its operational procedures and to adopt precautionary measures to overcome the effects of the potential risk. Risk identification is actually a process to acquire information about risk events, risk factors, loss exposure, harm and losses (Cao 2018). 

As stated by Tho (2005) that the tolerance for risk or risk appetite for uncertainty varies from one organization to another, every individual organization has its own risk tolerance level, it may ignore some of the risks considering them as least threatening or likely to interfere in the operational procedures. Most of the organizations have high risk appetite owing to their aggressive operational procedures due to their urge of more profits or influence of the market competition. Moreover, Risk appetite or tolerance is influenced by multiple internal and external factors for instance the workforce, management, government policies, weather and competitors.

The provided presentations also illustrates that as an effective risk management strategy is vital for the seamless operational procedures of an organization, and risk identification being the major component to be considered for the risk management strategy varied techniques are adopted to identify the level of possible risks.  Consumer’s feedbacks, competitor’s actions, regular check on government policies, weather forecasts and changes in global economies are some of the factors which are commonly considered for determining the potential risks.