RISK ASSESSMENT
Running head: RISK ASSESSMENT 1
RISK ASSESSMENT 2
Risk Management
Risk measurement plays a crucial role in the determination of efficient loss control. It is measured by projecting the expected amount of loss and the chances of the contingencies striking the organization. The management identifies and evaluates the magnitude of loss associated with a certain incentive. This is done for each of risk that is likely to happen in an organization. The management makes rational decisions on the most suitable approach to adopt. The management should always opt for high yielding plants that have low risks chances and also the costs of eh risks are manageable (Crouhy, Galai & Ebrary, 2000).
Woodman Company has several challenges that are diverse in nature. Management of any given organization should remain flexible and dynamic to suit changing global challenges. This is not exhibited in Woodman Company. The company should recruit a new workforce by first weighing the options. Replacement of inefficient staffs and recruit more dynamic younger employees who will steer changes in the Company. Some of the top management should be retained. This is because they have the much required skill required for development of Woodman Company.
Recruiting of new employees and development of new workforce will incur some risks in the organization. The management of the company will weigh the most appropriate option. Firstly, the cost of replacing the workforce should be considered. The workforce should be restructured as per labor regulations. This is to avoid the chances of breaking the laws that may lead to massive loss through fines. Recruitment of employees may take along. Management should ensure there are enough laborers before taking the option.
This option can lead to massive losses due to breakdown in labor supply and also the cost associated with the hiring inexperienced laborers. There are also various risks associated with the retaining of old managerial staffs in the company. They pose a threat of rigidity in the management structure of the company that may hamper innovation and growth in the company (Cosh, Fu & Hughes, 2005). Woodman Company is therefore exposed to the risk of lacking innovation if the work force is to be replaced and the top management of the organization to remain the same. Also the new workforce could expose the company for lack of efficiency that may hinder the productivity of the company.
The company lacks good relationship with the external environment. A good relationship between the suppliers and the managers is not in existence. The management of Woodman Company should be replaced to meet the demand of the entire stakeholders of the company. This could act as a way of improving the company simply because they will introduce better and cheaper ideas of producing and marketing their products (Frenkel, Hommel, Rudolf, & Dufey, 2005).
In conclusion, the management of the company has an option of recruiting new workforce for the company. This will assists to steer the dynamic leadership in the management that is much needed. Although the decision is vital it may not succeed on its operation. This is because the top management is still required and the new workforce would need adequate training before they can be fully efficient. The management should take the most appropriate action to avoid the impact of the loss that may strike the organization by hiring and training in batches, this should be an on-going process in order to attract fresh, new talents.
References
Cooke, P., Roper, S. (2003). The Regional Management studies
Cosh, A., Fu, X., and Hughes, A. (2005). Management Characteristics, Collaboration and Innovative Efficiency: Evidence From UK Survey Data: Centre for Business Research, University of Cambridge Working Paper No. 311
Crouhy, M., Galai, D & Ebrary (2000). Risk Management. New York: McGraw Hill.
Frenkel, M., Hommel, U., Rudolf, M., & Dufey, G. (2005). Risk management: Challenge and opportunity.