Risk management as a shared or centralized activity must accomplish the following tasks: identity concerns; identify risks & risk owners ? evaluate the risks as to likelihood and consequences; assess the options for accommodating the risks; prioritize the risk management efforts; develop risk management plans; authorize the implementation of the risk management plans; track the risk management efforts and manage accordingly. It is possibilities that are being accommodated. It is management's job to do the planning that will accommodate the possibilities. The customer is the final judge, but internal goals should be to a higher level than customer expectations.
The key words in risk management are: proactive; management; accommodate; acceptably; professional; possibility. The need for new risk assessment and management techniques is required to continuously track down potential and critical risks, and to develop strategies for handling these risks, for example: during product development. It is obvious that without a strong risk management plan as part of the process, a company will waste time, money, and resources, and will fail to manage the projects correctly.
Risk management is the sum of all proactive management-directed activities within a program that are intended to acceptably accommodate the possibility of failures in the elements of a program. From an organization's perspective a failure is anything accomplished in less than a professional manner and/or with a less-than-adequate result.
Risk Management Options
Risk management options are usually cited as risk handling options subdivided as: avoidance, control, assumption, risk transfer, and knowledge and research. Generally, the assessment of management options is a hip shot since the necessary decisions must occur early in a program when things are still fuzzy. However, if experienced personnel are given the facts, one can expect very good decisions since there is seldom any real mystery about the practicality of options available. (The practicality of any option is usually just an issue of schedule and funding.)
Avoidance: Use an alternate approach that does not have the risk. This mode is not always an option. There are programs that deliberately involve high risks in the expectation of high gains. However, this is the most effective risk management technique if it can be applied.
Control: Controlling risks involves the development of a risk reduction plan and then tracking to the plan. The key aspect is the planning by experienced persons. The plan itself may involve parallel development programs, etc.
Assumption: Simply accepting the risk and proceeding. However, there can be a tendency within organizations to gradually let the assumption of a risk take on the aura of a controlled risk.
Risk Transfer: Means causing another party to accept the risk, typically by contract or by hedging. Liability among construction or other contractors is often transferred this way.
Knowledge & Research: This mode is not "true" risk handling, but rather a technique for strengthening other techniques. This approach can best be viewed as an adaptation of the approach used by a student writing a thesis: intensive study with specialized testing ? in other words doing your homework.
Never expect initial risk management plans to be perfect. Practice, experience, and actual loss results will dictate changes in the plan to allow different decisions to be made in dealing with the risks being faced. In order for companies to succeed in the twenty-first century, they need to excel in all aspects of their business, which includes risk management, so they can fulfill their own and their customer's goals.
Conclusion
Risk management is an on-going process, and is a combination of proactive management-directed activities within a program that are intended to accommodate the possibility of failures.
Generally, risk management is understanding risks and doing something to circumvent or reduce the same. Thus, an expert rider knows his all the physical, environmental and vehicular limits. Risk management comes in the form of having the appropriate safety gears, motorcycle apparel, parts and proper training. This may also result to lesser risk of liability in an accident. The rider who appreciates the worth of risk management is the rider who experiences fewer collisions and is enjoying the most.
There are few steps to consider in risk management. These steps are:
1.Acknowledging the existence of risk. The fist step is to admit that there is a risk in riding. By this reason, the rider rides accordingly because risk to people and property may be at stake. 2.Risk Assessment. This is a learnt skill. Those who are newbies are somewhat groping when it comes to assessment skills. Thus, they must exert more effort and take advantage of time to increase their skill. The lack of protective gears while riding is a clear manifestation that the rider has poor risk assessment skills. 3.Risk Recognition. One cannot manage risks if he does not recognize them. There are two forms of risks – the subjective and the objective. The subjective risk is that which is inherent in a rider's attitude. Objective risk, on the other hand, is created by environmental, vehicular and roading conditions.
Risk management should be a natural effect of riding. It includes lots of factor like weather, motorcycle condition, road conditions, rider's health and more. Sometimes riders are unaware that they are already implementing it. This is subconscious application. It is something innate that even if you do not think about it, it just comes out as a constructive defense against probable road dilemma. External factors like rider's philosophies and attitude may affect his risk management skill. Thus, it will be better if he has this possitive outlook and the urge to desist trouble and injuries.
Both Paul Bower & Maricon Williams are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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