Wiki Question

The phenomenon of risk management has been a more significant issue in most of the upcoming and growing organizations. Visibly, an organization has several risks that it has to critically manage to boost its performance in the industry (Annamalah, 2018). However, most of the organization employ the use of enterprise risk management program which entails the planning, organizing and controlling the risks within an organization to minimize them to lower the effect they may have to the capital and earning of the organization.

To come up with such a program, an organization is tasked with the identification of the necessary and most essential tasks that the organization majors in and gives the critical analysis as to what extent the risks have on the organizational performance. Similarly, an adoption and implementation plan should be put in place to ensure that through the continued and strict observance of the steps the organization would be in a position to adapt and move value within its operations (Annamalah, 2018).

The implementation steps would include;

Identification of the risks

Analysis of organization operations, and the projects at hand and the underlying dangers that might affect its performance shortly.

Analyze the risk

Understand to what extent would the risk affect the performance of a given project to know the weight to put in its management.

Evaluate and rank the risks

Giving the risks the maximum effect allows an organization to priorities on the needs to manage first and that which can be adopted in the processes.

Treat the risk

Give the required reaction towards the minimization of the risk, either eliminate the uncertainties of suppressing their effect.

Monitor and review the risks

The final step in implementing a risk management program is by looking at what point to improve shortly to cater to the expected uncertainty in the organization.

References

Annamalah, S., Raman, M., Marthandan, G., & Logeswaran, A. (2018). Implementation of enterprise risk management (ERM) framework in enhancing business performances in the oil and gas sector. Economies, 6(1), 4.