Law Draft Assignment

RISK MANAGEMENT RESPONSE 1

Risk Management Response

Froydan Deleon Torres

JURI 635

Prof. Hopkins

4/14/2024

RISK MANAGEMENT RESPONSE 2

Abstract

It is common to portray risk management failures as caused by chance, carelessness, or

poor decision-making. However, a more thorough investigation reveals that numerous risks come

from systemic issues that may have been remedied by implementing an enterprise risk

management (ERM) program that is both proactive and continuous. Individuals should stay away

from these nine typical mistakes in risk management. People employ various methods and

approaches to lessen the impact of potential dangers. The goal of risk avoidance is to keep

oneself from being exposed to potentially dangerous circumstances or activities. The main

emphasis of risk reduction is implementing control measures to minimize the likelihood or

impact of recognized hazards. Insurance is one example of a risk transfer mechanism that shifts

the financial risk to an outside entity. An organization's interests can only be adequately

protected by implementing suitable risk management strategies. The study will employ thematic

analysis to identify the successes and failures in risk management response.

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Outline

I. Risk Identification

A. Identifying the hazards that the firm could encounter is the initial stage in

properly managing risk.

B. It entails looking at all the potential internal and external issues that could affect

the company's operations (Deubelli & Mechler, 2021).

C. To help identify these risks, doing regular risk assessments, having brainstorming

meetings, and using data analytics is helpful.

II. Risk Assessment

A. After identifying possible risks, the following stage for risk analysts is to evaluate

the likelihood and severity of such risks.

B. In doing so, managers can rank potential dangers according to their likelihood and

severity (Karunathilake et al., 2020).

C. To help risk managers allocate resources wisely, risk managers can use a risk

matrix or a similar tool to rank the severity of potential threats.

III. Risk Assessment

A. Risk mitigation aims to lessen the severity of potential negative outcomes.

B. This may involve taking precautions, making backup plans, or insuring against

potential problems (Olson & Wu, 2023).

C. Management of risks is an ongoing activity that necessitates regular evaluation.

RISK MANAGEMENT RESPONSE 4

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