Fundamentals of Risk Management

Control of selected hazard risks 
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use public transport where this is feasible, as well as reducing the amount of travel 
that employees undertake.
For industrial operations, there are detailed standards, rules and regulations in 
place, with the enforcement agencies having considerable powers. As well as paying 
regard to the legislative requirements, these regulators will also pay regard to broader 
public opinion and seek to evaluate the following issues:
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What impacts to the environment may occur?
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How harmful are these impacts to the environment?
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How likely is it that these impacts will occur?
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How frequently and where will these impacts occur?
Control of marketplace risks
Technology developments
One of the main challenges facing organizations is keeping up with customer
expectations and demands. This challenge is made more difficult by continuing
developments in technology. Organizations supplying consumer goods that are
technology-based face a continuous challenge, which can be turned into a continuous 
set of opportunities.
Changes in the technology used to provide home and mobile communications
and entertainment have been considerable in recent times. Until relatively recently, 
home entertainment and mobile entertainment were based on CDs. Organizations 
operating in this area were confronted with the introduction of MP3 technology and 
had to make decisions about which technology to pursue. The investment required 
to change technology was considerable and the marketplace risks very significant. 
For the organizations that correctly identified (and influenced) the developments,
the rewards have proved to be enormous. In a rapidly changing marketplace,
technology advantages can be significant but the challenge of correctly identifying 
the most likely successful technology is always present and the investment required 
is huge.
Consumer decisions regarding new technology are led by convenience, quality, 
price and fashion. Another factor affecting consumer decisions and the availability 
of new technology is that significant developments in technology of this type occur 
on a worldwide basis. Therefore, only a very limited number of organizations have 
the resources to undertake the research required to develop products based on the 
new technology. Also, these are the same organizations that design, manufacture and 
supply goods that utilize the new technology.
In order to take advantage of these new technologies, many organizations have to 
enter into joint-venture partnerships, share expertise and share the cost of develop-
ing the new technologies. Selection of joint-venture partners can be difficult and 
correct decisions are essential. When developing a new entertainment technology that 
will be introduced across the world, attempts are sometimes made by competitors to 
agree the technology that will be adopted. This strategic approach has the advantage 

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