Fundamentals of Risk Management
Download 3.45 Mb. Pdf ko'rish
|
Fundamentals of Risk Management
- Bu sahifa navigatsiya:
- Introduction to risk management 64
Achieving benefits
These reward enhancement options can be discussed at strategy meetings and some options may be adopted, including the introduction of bonus and incentive schemes for staff and management. Clearly, in light of the lessons learnt from the global financial crisis, these incentive schemes should be balanced and should not reward excessive risk taking. This chapter has considered the principles of risk management that describe what risk management should be and what it should deliver. Although organizations may realize that there are benefits from implementing risk management, the successful implementation has to be undertaken as an initiative or project. Appendix C sets out a detailed consideration of the stages involved in successful enterprise-wide risk management. Introduction to risk management 64 There is a popular question amongst risk managers: ‘why do cars have brakes?’ The answer offered is that they enable the car to go faster. This implies that risk management should be viewed as the brakes on the activities of the organization. This is a wholly negative view that presents risk management in an unfavourable light. Risk management is also an enabler of operations, tactics and strategy. Therefore, it is worth revisiting the above question. To continue the metaphor, risk management should, in fact, be seen as all three pedals in a car. Risk management as the brakes mitigates operational hazards and helps the organization avoid disruption, thereby enhancing operational efficiency. The clutch pedal is concerned with changing gear in a car in the same way as projects implement the tactics in an organization. Therefore, risk management is also the clutch pedal in that it helps assist with the successful management of tactical change and the reduction of the associated uncertainty, so that the organization can achieve successful change. Finally, the accelerator helps the car go faster and risk management fulfils this function by helping the organization embrace strategic opportunities and seek rewards – thereby ensuring that the organization designs and successfully implements a strategy that delivers exactly what is required. risk management is not just the brakes There is a more detailed consideration of the barriers to and enablers for implementation of risk management in Chapter 24. The most important point to make is that the support of senior management and (ideally) the sponsorship of a board member are essential. Also, an implementation plan to address the concerns of employees and other stakeholders is needed. Although risk management is vital to the success of an organization, many managers may need to be persuaded that the suggested implementation approach is correct. It is important to note that not all activities and functions undertaken by managers should be claimed by the risk manager as being undertaken in the name of risk management. Not all activities in the organization will be driven by risk manage- ment, even if all decisions, processes, procedures and activities have risks embedded within them. Much of this book is concerned with risk management input in operations. It is likely that operations will be impacted by hazard risks and so the focus of risk management in relation to operations is on hazard management. In order to achieve the maximum benefit from risk management input in operations, organizations need instead, however, to focus on loss control. Loss control is a combination of loss prevention, damage limitation and cost containment. Projects should be completed on time, to budget and to specification, performance or quality. Inevitably, there will be a considerable amount of uncertainty associated with |
Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©fayllar.org 2024
ma'muriyatiga murojaat qiling
ma'muriyatiga murojaat qiling