Free Risk Management Essay Sample
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One of the main distinct characteristic of entrepreneurs is that they are risk takers when it comes to implementation of various business related strategies. This is because some business strategies implemented might not go down well with consumers and other stakeholders and in the end this might affect the growth and profitability of the business. There are thirteen (13) different categories of risk management; however they can be grouped into four main categories namely contractor risk, dealing with business change, scheduling and technology integration. The purpose of this research paper is focus on two of the four categories and find out two major risks under the two categories. It will identify the specific action that can be taken to contain or avoid the risks, when the actions can be taken and the persons responsible for managing and containing the risks. In addition to that it will explain the new probability level of each risk and in conclusion, the paper will give a brief summary of the key points discussed in the paper.
The rapid growth of the information and communication technologies sectors in the recent past has changed the way organizations conduct business; however some of the decisions that organizations take in relation to technology integration in an organization may interfere with the organization's normal day to day activities. It is therefore important for organization to come up with a well laid down plan can help to contain technology integration risks. According to Stoneburner et al, there are two main technology integrations risks; hardware and software integration (Stoneburner et al, 2002a). There are three main steps that information technology experts used to contain risk in an organization (risk management processes) and they are risk assessment, risk mitigation, and risk evaluation and assessment (Stoneburner et al, 2002b).
The risk assessment involves identifying and evaluation the risk and the impact (both negative and positive) it can have on the organization. In addition to that recommendations are also given on how to minimize these risks when they arise. The second stage which is risk mitigation stage that ensures the recommendations given in the first step are implemented and these risk management programs are put under check to ensure that they (risks) don't recur. As indicated in the paper, the last step of technological integration risk management is the risk evaluation and assessment; under this the organization conducts regular evaluation to determine as to whether the security measures are at acceptable level or no needs to be done (Stoneburner et al, 2002c). according to Moran, there are different types of computer hardware and software specialists and each of them plays a vital role in ensuring that risks related to technological integration are minimized (Moran, 2009). They however must work hand in hand with the organization executives to ensure that they (executives) are aware of the risks and ways in which they are planning to deal with them.
Dealing with Business Change
It is the dream of any investor to witness their businesses experience positive changes and expand; however this is not easy since the entrepreneur must make some tough investment decisions. According to Lynch, the main purpose of risk management in an organization is to reduce exposing the organization's weaknesses during low seasons and ensure that the business runs smoothly (Lynch, 2009a). For any business that is undergoing change, there are two things that the management has to deal with; the consumer behavior, supplier's behavior and the implementation of the new policies and infrastructure. In addition to that Lynch has stated that before any organization roles out new changes, the management and board of directors should critically examine the organizations performance to determine as to whether its worthwhile investment or not (Lynch, 2009b).
As indicated in the previous section of this paper, any changes in a business affects the organizations consumers, suppliers and the organization itself, this is when it comes to the change of hardware and operating systems. In addition to that there are different stages that are involved in the process of risk management when a business is undergoing change and they are preparedness, mitigation and response. Before a business takes the risk of rolling out new changes, it should first conduct market study to determine how the people will respond to its new look, other stakeholders like suppliers should also be notified of the looming new changes. During the mitigation stage, most departments of the organization are bound to be affected and therefore it is important for the organization to have a backup plan on how to avoid making losses or loosing clients.
The final step is the response; under this the organization / business gets response for the new changes it has implemented and this will reflect of the performance of the business as compared to its competitors. Unlike in technology integration where the main players are computer specialists, in business all departments play a role. The human resource department, the I.T (computer), sales and marketing department as well as the executive, each of them have a pivotal role to play and a slip up in one department will directly affect the outcome of the other department. One of the challenges that faces business when it comes to rolling out new information technology infrastructure, it is therefore important for any organization that wishes to implement changes in its information technology department to consult with specialists in order to be provided the correct hardware and software.
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