The Chronicle Gazette
Critical evaluation of a Risk Management Framework
Name
Professor
Institution
Course
Date
Critical evaluation of a Risk Management Framework
Introduction
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
Name
Professor
Institution
Course
Date
Critical evaluation of a Risk Management Framework
Introduction
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
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.