Workshops Would Allow Risk Environmental Resource
Respond to two students and total required word cunt is 250 words. Please use scholarly sources and total required sources 3. Cite source and make sure response is original.
Original question: In Box 24.1 in the chapter, a list of risk identification techniques appeared subdivided by three categories. Please choose three of them and tell us why you chose them for analyzing your organization. Use your current organization as a context.
Describe some key value lessons about ERM that appealed to you from Box 24.2. End your post with your own value lessons that you take away from studying ERM
Student 1 Fatina,
As many of us have seen by now, there are many risks that can affect a company negatively. With ERM it allows us to assess these risk. As I viewed over the list from box 24.1, the three risk identification, I felt when analyzing my organization was questionnaires, discussion with peers, and a checklist. In the Army being so far dispersed, we use questionnaires to see if there are problems occurring that are potentially unidentified risks. They are beneficial in some ways, especially if they are anonymous and allow employees to speak freely about what is on their mind and what is bothering them. The next was a discussion with peers. When possible, I think the face to face interaction is so vital in any organization to determine problems and risk — also figuring out how to mitigate them as well. Lastly, a checklist. I know that it may not sound like it is important, but in the Army, following tasks and guidelines exactly how they should be via a checklist is the best way to avoid as well as mitigate risk. In box 24.2, one lesson I found meaningful was, “although some risk can be measured with sophisticated tools, these measurements must be understandable by management.” To me, this simply rings true in all aspects as you can have the fancy equipment that is designed to prevent risk, but if it’s not learned and understood by management, it still won’t be as effective as possible. An example can be a new plane. They may be designed not to crash but, if not understood by pilots in can still crash.
As stated by Fraser and Simkins (2010), enterprise risk management (ERM) is an “iterative and disciplined process,” and typically includes the following key steps: clarifying strategies and objectives, identification of risks, risk assessments, implementing risk strategies, and monitoring. As we have learned, there is more than one approach to identifying risks. For my organization, I would select self-assessment and other facilitated, SWOT analysis, and value chain analysis. A self-assessment is a way in which the organization can take inventory of their risks. To accomplish this, an internal and/or external audit would be beneficial in identifying any inherent risks that could negatively impact the organization, as well as changes and emerging risks (Baker, 2014).
Student 2 Juanita
Also, a SWOT (strengths, weaknesses, opportunities, and threats) analysis would be a useful tool, as it will allow the organization to construct a list of inherent risks, which are subsequently categorized accordingly (Rice, 2010). Once the audit is complete, workshops would allow risk management teams to discuss the changing and emerging risks, as well as prioritize the inherent risks, which were identified in the audit or SWOT analysis. Moreover, the team would be able to assess how to mitigate their risks and appropriately allocate resources.
Lastly, as stated by Rice (2010), a value chain analysis, is comprised of “functions performed to create a product or service” (p. 385). This analysis would be useful in identifying alternative methods that would mitigate risk exposures and determine which method has the best value.
Some key-value lessons about ERM that appeal to me are that there is more than one way to manage risk. Therefore, an organization must establish a risk management process that will give them the best value. As such, it is beneficial to establish a team whose primary responsibility is to assess an organization’s potential risks and develop strategies to mitigate risk exposure. Although, I have also learned that ERM is the responsibility of all those within the organization. Moreover, I recognize that ERM is an ongoing process, given this, organizations must continuously monitor its risks and adjust their strategy as warranted.