The Chronicle Gazette

Topics: Risk management, Management, Risk Pages: 9 (3200 words) Published: January 23, 2013
Critical evaluation of a Risk Management Framework

Critical evaluation of a Risk Management Framework
Proficiency and effectiveness in business organization are determined by several operational factors that must be considered, and well evaluated to improve and sustain high performance in the organization. One of these issues that play a great role in business management is the risk management, which has various principles and operational approaches that enable the managers and the stakeholders to make wise decisions towards the organization. There are several benefits that are accrued by organizations that have effectively integrated sufficient risk management strategies in their operations. However, these merits are associated with the internal and external context that affects risk management in an organization (Waring & Glendon, 1998: 27). Some of the factors that are included in the internal context, that should be considered by an organization when defining the effects of risk management are such as the culture of the organization, the various roles of the internal stakeholders, the structure of the organization with inclusion of the resources and capabilities of the organization and the outcomes or objectives that the organization targets at achieving. On the other hand, the external factors that need to be considered when defining the risks associated with an organization are such as the regulatory requirements, cultural environment, the political factors, socio-economic factors and the market where the organization operates its businesses (Keefer, 2007: 24). In addition, the identification of the external stakeholders is a factor that is very essential in defining the issues that affect the risk management of an organization and those which help in defining the risk management framework that influences the operations of a business organization when considering risks associated with the organization. This paper aims at ascertaining the risk management framework of an organization with reflection on the Game Investment Pty Ltd. It will also rely on the organization to assess the effectiveness of the framework in relation to risk management. An evaluation will be done to confirm whether the risk management framework discussed will have fully addressed the elements of risk management model by describing the effectiveness and appropriateness of the framework and considering the effectiveness of the framework in addressing factors like management systems, culture, power and organizational environment identified by Waring and Glendon (Waring & Glendon, 1998: 27). Risk Management Framework

The understanding of the risk management framework can be best reached at after a clear comprehension of the importance of the risk management in any business organization. People have different perception on the meaning of risk and this creates the difference in the views they have towards risk management. Some individuals view risk as a tool that should be minimised or avoided at all cost for a business to be successful. However, avoiding risks is not the solution that would make an organization to be successful in increasing its sales, or in reducing operational costs to increase the profits. The best solution and the critical issue thus is risk management (Wolosky & Heifetz, 2002: 1). How should organizations manage risks so as to increase the output at fewer inputs? The strategies and approaches that the management of an organization uses to improve the operations and performance of an organization are similar to those that are applied in managing risks in an organization. This is true with consideration of the operational strategies and the decision strategies which are the two main management strategies employed by organizations to improve effectiveness and efficiency in the organization (Coffin, 2004: 80). Thus, effective management consisting of clear...

References: Brigham, E. F., & Houston, J. F. 2007. Fundamentals of financial management. Melbourne: Thomson, p. 16-24
Catanach, A
Coffin, B. 2004. Italy Risk. Risk Management, p. 80.
Fajardo, C. L. 2007. The move towards convergence of accounting Standards worldwide. The journal of American academy of business, vol. 12(1), p. 57.
Ghemawat, P. 2007. Why the world isn’t flat. Foreign Policy, p. 57.
Keefer, W. J. 2007. Follow the Money: The Insurance Industry and the Patriot Act. Risk Management, p. 24
Madura, J
Marshall, J. 2006. Business and Finance Go Global. Financial Executive, p. 18.
Mody, A. 2004. What is an Emerging Market. Georgetown Journal of International Law, vol. 35, p. 641.
Nollenberger, K. 2006. Combining Leadership & Management Skills. Government Finance Review, vol. 22(4), p. 28.
O’Callaghan, I., & Caufield, E. 2006. Reinventing the CFO: How financial managers can transform their roles and add greater value. Accountancy Ireland, vol. 38(6), p. 77
Risk Management, 2005
Shimpi, P. A. 2001. Integrating corporate risk management, New York: Texere, p. 45
The Economist, 2007
The Economist, 2007. International: how to be Islamic in business; United Arab Emirates. The Economist, vol. 383(8532), p. 68.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Strategy of Chronicle Gazette Essay
  • The Chronicle Gazette Essay
  • The Chronicle Gazette Research Paper
  • Strategic Planning at the Chronicle Gazette Essay
  • Essay on Strategic Planning at the Chronicle Gazette
  • Essay about Strategic Planning at the Chronicle Gazette
  • Term Paper: Strategic Planning at the Chronicle Gazette
  • Martian Chronicles Essay

Become a StudyMode Member

Sign Up - It's Free