Risk Management

Topics: Risk management, Risk, Security Pages: 5 (1588 words) Published: August 27, 2013
Risk Management

AJS/562 Management of Institutional Risk and Critical Incident Management

Angelika L. Arnold

August 19, 2013

Erik Burks

Risk Management

Risks are a part of everyday living and each and every job no matter how big or small the organization or company. As petty as it sounds, when waking up in the morning there is a risk of tripping on a shoe or a pair of pants that were taken off the night before. When cooking breakfast there is a risk of burning the bacon, or forgetting to set the alarm before exiting the house. While at work there is a risk of saying something funny but may be deemed inappropriate to a co-worker. Every day individuals come in contact with minor situations that are often over looked until the situation goes array and left wondering what could have been done to prevent this from happening. Risk management is the thought process of how to deal with the storm before the flood comes. This paper will discuss the role and nature of organizational risk and the importance of risk management. Planning, identifying, cost, and the consequences of managing risk are all things considered when dealing with risk factors and organization risk management. Risk Management

Risk management is the identification, assessment, and prioritization of a risk (“Risk Management”, n.d.). Risk management is a well-ordered, detailed process to consider the probability that a hazard will harm an asset or individual and to identify possible actions that can reduce the risk. Risk management is a way to identify weakness in a business or operation and provide a backup plan to mitigate the fallout of the threat. It is set up to acknowledge that while risk generally cannot be eliminated, evaluating and setting a plan for known or possible threats can severely reduce the risk. An effective risk management approach can have three elements: assessment of a threat, pin pointing the vulnerabilities, and a plan of action to succeed. Risk assessment is a systematic examination of risk using disciplined processes, methods, and tools. It provides an environment for decision making to continuously evaluate and prioritize risks and recommend strategies to remediate or mitigate those risks (“Assistant Secretary of Defense for Homeland Defense and Americas' Security Affairs”, n.d.). Several federal government organizations apply some formal threat assessment process in their operation of the process to begin implantation. For example, the Department of Defense uses threat assessments everyday for its antiterrorism program. The antiterrorism program was designed to protect military installations and the occupants on the base. The Department of Defense evaluates threats on the basis of several factors, including possible suspects, accessibility to the military installation, possible damage and recovery. By first acknowledging that with several guards on 24 hour watch; security can always be breached by one individual’s lack of discipline, integrity or attention to detail. It only takes one second for a small situation to turn into a major fiasco due to lack of risk management. The military particularly specializes in operation risk management. Operation risk management is a step-by-step training class designed to educated, practice and applies risk management. One way the military identifies possible suspects of threat are by tracking who is allowed on base. Only authorized personnel or visitors with a clear background check may enter the gates. The main vulnerability is an inside attack on the installation. An inside attack is when an authorized person becomes the threat. The plan of action is a giant voice speaker that announces to everyone on the installation at the exact same time that a threat has occurred. By using operation risk management everyone on the installation is able to safely and efficiently ensure the threat is identified and secured. By having a risk management plan the Department of Defense is able...

References: Assistant Secretary of Defense for Homeland Defense and America 's Security Affairs. (n.d.). Retrieved from http://policy.defense.gov
Borum, R., Fein, R., & Vossekuil, B. & Berglund, J., (1999). Threat Assessment. Behavioral
Sciences and the Law, 17(3), 323-337.
Risk Management. (n.d.). Retrieved from http://www.princeton.edu
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