5530 Final Project Please Read The Attached Document

Running Head: TRANSFORMING INFORMATION 1

TRANSFORMING INFORMATION 4

Transforming Information.

Tommy T Bush

University of North Texas

12/15/2021

Basically, in any project, there has to be a continuous process that should be implemented from inception to the completion of the respective project. In most cases, risk management becomes effective at the early stages of the project. It is worth noting that risk is any unforeseen condition or event that has a negative or a positive impact on the respective project when it occurs (Ray, 2021). However, there is a need to apply laws and legal concepts when developing strategic decisions in the risk management process. Regulations play a significant role in the risk management process where they define and manage the actual approaches to risk within and outside the respective organization. This paper aims at discussing how the laws apply in managing risks in a recreational facility.

Risk management in a recreational facility helps provide high-level information about the risk. According to Moorhead & Vaughan (2015), the risk management process plays several roles in the organization that it is being applied. One of the most influential roles is the balancing of the risk and the profit made by the organization. Through this role, the risk management factor develops a facilitative role in the respective organization (Ray, 2021). On the other hand, the risk management process controls risk occurrences through decision-making processes, assessment, and control. There is a need to have legal concepts to identify the natural source of the risk.

Risk management in recreational facilities helps to control and avoid cases of injuries to guests and also the employees within the recreational facility. It is the moral responsibility of the operators within the recreational facility to ensure that every person within that recreational facility is safe. Some of the laws that guide recreational facilities in managing risk include the provisions on reducing any unforeseen hazard, reducing consequences of the event, and providing cost-effective and comprehensive insurance. However, many initiatives are enforced by government agencies and are required by law. Therefore, without laws and legal concepts, risk management could be a difficult task to perform.

Risk is generally categorized into three different levels, which include real risk, perceived risk, and inherent risk. The real risk is a justified likelihood of an incident by analyzing statistics and the relevant data (O'Conno, 2021). On the other hand, perceived risk is the perception of the people involved in evaluating and undertaking different roles within the organization. Lastly, inherent risk is the type of risk that occurs through the existence of certain activities in an organization. These are the common types of risk that are considered during the risk management process.

The recreational facility can perform the risk management process through different steps. The first step in the risk management process is assessing the risk. Risk assessment can be done through discussions with the leaders in the management positions and the junior staff. More so, the team involved in the risk management process of the recreational facility has to ensure that the objectives of the recreational facility are defined as it provides confidence in the process of risk assessment (O'Conno, 2021).

Risk assessment clearly understands what to consider when identifying risks within the recreational facility. On the other hand, information should be gathered from various sources to determine the risk. Some of the most reliable sources include Political, Economic, Social, Technological Environment & Legal PEST (EL). Through the help of risk identification tools such as judgment-based, brainstorming, checklists, among others, will help in managing risk in the respective recreational facility. After identifying the risk fully, it is very important to document the risk identified as it helps guide future risk identification exercises.

The second step in the risk management process in a recreational facility is risk analysis. In this stage, the probability of the risk occurrence is determined. More so, the risk management team determines the severity of the risk if it occurs. Risk analysis embraces two primary concepts: avoidance to exposure and loss reduction. Basically, loss reduction is a situation where steps to mitigate the damage of the risk are acknowledged. Exposure avoidance is a situation where mitigation strategies are used to avoid direct exposure to the risk (Martins, 2021). Some of the laws that support exposure to risk involve policies that govern access to some environmental regions due to certain threats. However, the recreational facility may decide to control the number of guests attending the recreational facilities due to health issues.

References

Martins, J. (2021, May 7). The project risk management process in 6 clear steps • Asana. Retrieved from https://asana.com/resources/project-risk-management-process

O'Conno, S. W. (2021, March 30). The project risk management process | 5 tips for success. Retrieved from https://www.northeastern.edu/graduate/blog/project-risk-management/

Ray, S. (2021, February 26). The risk management process in project management. Retrieved from https://www.projectmanager.com/blog/risk-management-process-steps

Rowe, C. (2021). The 5 step risk management process. Retrieved from https://www.clearrisk.com/risk-management-blog/bid/47395/the-risk-management-process-in-5-steps-1