Risk Management Assignment - Free Essay Example

Risk Management The Task Introduction This task is involve all the point of risk management process. Identify the risks and potential effects in general, can help the local computer in starting the process of risk management or contract, auditors should recommend that agencies explore better ways of management in the region. Reducing the risk acceptable level of risk can not be eliminated. It includes the level of risk the organization can live, make sure that the right controls in place to keep the risk to an acceptable level. Transfer of risk to the insurer. i.e. to ensure the companys property theft or damage, such as wind or fire damage or transferring the risk to another organization (for example, using a third install network equipment vendor that sales are made responsible for plant success or failure). Examine and discuss each step below which forms part of the risk management process followed within an enterprise. Explain the reasons behind each step, what each step achieves for the enterprise and give examples. Determine the objectives of the organisation : Risk management and risk management purposes, the first step toward defining the goals of your organization to define a shared vision. A general view of the back, you have to define the objectives of the overall risk management purposes. In a statement, while the aspirational vision, goals and objectives as stated in simple terms what needs to be achieved in general. They should be in a real system. They are defined in the companys business strategy. For example, some common goals, risk management companies choose to design their ERM approach as follows: In order to manage the cost of risk-based business, multiple functions and business units to develop a general understanding of risk. Get a better understanding of the risks of competition. Creating a protection against financial surprises. Create and effectively limited possibilities, vital, improve opportunities to deal with disaster risk. Achieve lower costs through better management of local resources. Allocate capital more efficiently. Be consistent with the risk management objectives and strategies to support the business objectives and the company. Therefore, the companys business model and risk management provides an important context. identify exposures to loss : Identification of risk management is an important first step; If you know that it is quite possible loss of coverage as a truly strategic, cost-effective to deal with them will not be able to develop. Hundreds can not risk or hazard that may lead to an unexpected loss will be recognized. For example, if you had a fire, how can you fire losses do not realize that large. This includes building demolition and clear, but at the same time you should consider. Smoke and water damage. Destruction of personal property and the property of others experts to vacate the premises (for example, data processing equipment or property leasing customers for inspection or repair, youll leave). How much work is lost for the time it takes to return to normal business. The possibility of permanent loss of customers of competitors. In every detail of your business activities, risk identification process begins to look and what might cause a loss. exposure you can get some answers. You know, for each side, ask how big a loss. This focuses on the ability of weight on each side, for example, harm does it cost? The goal here replaced or repaired, but the total cost of losses is to find the source of funds. Many business owners as a list of insurance agents is available risk analysis survey or research use. In addition, agents can help you analyse your situation; expertise and experience, are less likely to forget any subject. Measure those same exposures : The risk of the effects of such a process. Events are exposed to so eliminate the possibility of not. However, information management and try to understand the risks and more effective crisis management in accordance with Council report: The objectives of the companies and organizations in and a result, development and protection of the environment in which the risk is transferred from the surface., There is no comprehensive evaluation of the sound system is regularly cited as evidence of the involvement of the company at risk. Nature and some success in the costs of the company to take risks, objective, fairness and risk management and to help him right The first crisis management, investing a little time and effort, and avoid many of the problems in the management can achieve great benefits. What action (dangerous) to initiate and to treat the symptoms (effect) is good medicine. Select alternatives : Risk management offers a number of different ways to different risk circumvention. Liberty International Underwriters Gaza rumours are: Customizing the frontman for all lines of insurance High quality claims handling Vaccines and under the most business Assessment / risk insurance global status Mortality risk and reinsurance programs Implement a solution : Improve the quality and effectiveness of risk management Risk assessment in collaboration with business users Automate and consolidate corporate communication of risk exposure Risk Management Department is responsible for assessing your organizations exposure to risk, ensuring that the risk is adequately controlled by all departments and verified that all business units are using the same method of risk assessment. Mega solution for enterprise risk management has been developed to support risk management and risk owners throughout the process of risk assessment and control, with a personalized interface for each user profile. Common workspace, workflows, and shared resources to help stakeholders to exchange information and knowledge, the use of existing standards, methods and documentation, and ensuring full of data. Graphical modelling capabilities the solution provides better readability risk mapping. Risks are mapped directly to the diagrams of business processes within the organization that can be adapted to the risk exposure. Facilitated cooperation with business processes helps managers to strengthen the culture on the basis of risk across the organization. Monitor and review the outcomes : Monitoring is an important aspect of continuous improvement. In order to constantly monitor and support is the overall activity of the tissue, in order to ensure the value the effectiveness, efficiency and, regular review of risk management policies and procedures necessary. They also, within government agencies, and to provide feedback both of the entire government, stakeholders and other administrators. Approach and risk management system and inspection, will help you determine whether or not to achieve the desired results, collected during an audit, potential gaps for improvement, views, suggestions and opinions, and opportunities gap it helps to identify. If necessary, monitoring and evaluation, methods and organization of risk management, communication request, the process of reporting of stakeholders internal and external and I will connect the members of the door. Examine and discuss a risk management frameworks standards model. Discuss the principles behind the model, the drivers and components involved in the process. A risk management framework is a description of a specific set of organizational and functional Activities and related definitions which define the risk management system in an organization. Organizational system and the relationship to risk management. Risk management Framework defines the processes and procedures and timing of processes that will be used to Risk management. Good risk management framework should enhance and improve risk. Management by: 1 making it more transparent and understandable to stakeholders, 2 by making their processes more efficient and 3 by allowing for cross fertilization of risk controls, risk estimation, risk assessment of Others because standardize terminology, processes, equipment, etc. components of Risk management Frameworks Risk management consists of eight items related companies. it comes About the way management runs a business and will be integrated with the management process. The elements are: à ¢Ã¢â€š ¬Ã‚ ¢ Internal Environment The internal environment includes tons Organization and establishes the basis for how we see the risk assumed by People, including risk management philosophy and risk appetite, integrity and ethical Values ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¹ÃƒÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¹and the environment in which they operate. à ¢Ã¢â€š ¬Ã‚ ¢ Set targets targets must exist before management can identify potential Events affecting the results. Enterprise risk management ensures that management has established a process to set objectives and that the chosen objectives Support and fits with the mission of the unit and is consistent with its risk appetite. à ¢Ã¢â€š ¬Ã‚ ¢ Event Identification Internal entity affecting achievement and external event s The objectives must be identified, distinguishing between risks and opportunities. Opportunities will come back to the control strategy and goal setting Processes. à ¢Ã¢â€š ¬Ã‚ ¢ Risk Assessment Risks are analyzed, considering likelihood and impact, as a basis To determine how they should be managed. Risk will be assessed indigenous Residual base. à ¢Ã¢â€š ¬Ã‚ ¢ Risk Response The Board selects risk responses avoiding, accepting, reducing, Or sharing risk developing a set of actions to align risks with the entitys risk Tolerances and risk appetite. à ¢Ã¢â€š ¬Ã‚ ¢ Control Activities Policies and procedures implemented to help To make sure that the risks are being effectively implemented. à ¢Ã¢â€š ¬Ã‚ ¢ Information and Communication relevant information is captured and Press the manner and the conditions that enable people to achieve their Obligations. Effective communication also occurs in a broader sense, flowing To the other s ide, or even people. à ¢Ã¢â€š ¬Ã‚ ¢ Monitoring Global enterprise risk management is monitored and Changes made in case of Poland. Monitoring is carried out under management activities, separate evaluations, or both. Risk management in the company is not entirely a serial process, in which only one component affects further. It is a multi-iterative process, where almost all the components can not interact. Examine and discuss each step below which forms part of the risk assessment process followed within an enterprise. Explain the reasons behind each step, what each step achieves for the enterprise and give examples Identification of relevant business objectives : It is possible to account for the risk assessment and vulnerability to a number of objectives. Some of these objectives may be the result of matching the requirements of the new rules, orders and regulations related to information security. Safety as a process for IT infrastructure and assets relating primarily to prevent, detect and comprehensive process safety and security architecture and a powerful framework to help IT organizations to ensure the safety of infrastructure and property in accordance with the minimum level of acceptable risk or exposure. Identifying events that could affect the achievement of objectives : Measuring the success of your event in many ways, one of which is security. As part of any good plan. The process should identify hazards and assess risks and controls to minimize the risk of injury or Damage. Events in size, nature and character is different, but all events require assessment, monitoring and risk control. While most of us understand this, we find it difficult to document the event, such as risk Register or application of risk control. Start with something simple to remember and build on it. It will be Valuable tool that you can use to assess the security event from the planning stage through to the overall. Evaluation of the event. Determining risk tolerance : Your Risk tolerance measures how comfortably you can handle declines in the value of your investment both emotionally and financially. Build a retirement portfolio tailored to your risk tolerance is crucial. In addition to providing peace of mind, it enables you to avoid making rash decisions when emotions investment market volatility. Investors who do not risk more than they can genuinely bear often end up leaving their investments at the worst possible time, Incurring losses that could have otherwise been avoided by investing in risk their comfort zone. your risk tolerance is determined by several factors, some of that combine and your ability to take risks and others that relate to your attitude to risk-taking. Your ability to take risk may depend on your age when you expect to retire, how much properties are already saved up, and your current strength and future access. Your attitude to risk depends largely on your personality and investment experience. Assessing the inherent likelihood and impact of risks : For internal Auditor, Risk analysis is important because it provides information on the priorities in the audit universe. Auditor looking at all he has the right to audit (audit universe) and wondered where his career, giving the point, is better executed. You need to think this through: not in areas where management knows they have issues. If she inspections there, hell find ways to respond to management resounding So what, we knew that already added value insurance directly. That the auditor should consider are the areas where the risk is great, but according to the management appropriately mitigated. Chemical residues reviews do him no good, because the colour management will be sufficiently mitigated the risk as the residual risk. It gets confused and states the primary risk or low risk normal residual value. Thus, the internal Auditor wants to review natural hazards. Evaluating the portfolio of risks and determining risk responses : By taking a portfolio approach to risk management, companies can optimize, rather than reduce, natural hazards. However, as the inherent risk of failure to align with the business of risk appetite, risk responses should be applied. Response options include accepting the risk, in order to avoid risks and reduce risk. Reduce the cost of operations should be considered along with the benefits to fully determine the actual benefit of all responses. Estimated net profit is important to determine what is the most appropriate response (s) risk. One such activity is the reduction of business process management (BPM), which is also important for effective enterprise risk management (ERM). By linking performance specification for the process to strategic objectives, BPM can be a useful tool to efficiently manage risk from a portfolio perspective tool. Assessing residual likelihood and impact of risks : Risks commonly accepted definition is: information security threats usually are divided into three categories of natural, plant or human Possibility that the threat (or threat agent) to exploit vulnerability is due multiplied by the impact of business they use. and the effects will be assessed on the confidentiality, integrity and availability of information assets. The organizations have been carrying out this procedure successfully to assess the risk for many years. What organizations are struggling with is that when you do this type of assessment and how to use the results to make decisions to implement the time, money and resources to reduce the risk. In terms of information assets, risk assessment methods. Conclusion We learn here how risk management process is important. Risk assessment and frameworks standard are very effective in risk management process. Risk management is relevant to everything you do, not just the advice you give the client but yourself and the way you run your office. Risk assessment consider the risk quality and quantity. Jignesh Raval 1