Week 7

Risk Assessment

Name

Institution Affiliation

Date

Risk Assessment

Risk assessment is a process that is used to describe and identify the various risk factors and hazards that have the capability of causing harm to specific individual or the whole organization at large. The process involves looking deep into the main obstacles that may inhibit the organization or workplace from experiencing progress. After one identifies the risk that may affect the organization one should then assess how server the risk is. If the risk is prone to pose an adverse effect shortly then appropriate measures to curb the problem are put in place (Suter II, 2016). 

There are a couple of business risks that face a business or an organization, and they include strategic risk, compliance risk, operational risk, financial risk, and reputational risk. From the above-identified risk, it is advisable to change the roles and responsibilities of different works in the organization. By switching roles of different employees, some of the risk that is prone to happen will be minimized by a significant percentage.

The different department is headed by various employees, and each department is expected to produce a certain output at the end of the year. To facilitate this employee in the organization should be allocated their duties according to their level of experience this means that is if an employee is specialized in accounting then he or she should head the finance department. This will reduce the risks that are prone to affect the finance department such as embezzlement of funds. A succession plan should be developed to ensure that all the activities in the organization are done following a unified system (Li, 2014).  A successive plan enhances coordination of activities thus reducing the risk that is prone to happen in the organization, in case the organization performs its function without following any protocol everything will be done up hazard thus exposing the business to a wide range of risks. The company should change according to the change in technology. Therefore, there should be a recurrent introduction of a new skill to the employees. Equipping the employees with new skills will help curb the risk of competition that is expected to be posted by other competing company shortly.

Changes should be made in the different departments and make correct adjustment according to the current trend in the market, e.g., in the IT department there networking system should be checked and updated from time to time to prevent any risk of malfunction from occurring. When relevant changes are made to the various departments found in the organization the number of risks that are prone to occur is also reduced because necessary changes and amendments will have been put in place. The organization should ensure that there is effective communication between the people working in the company (Martin, 2015). The employees and the employers should have a good relationship to ensure that the risk of disputes is minimized. Communication barrier is one of the most common aspects that lead to an increase in the number of risks that occur in the business thus by establishing a good and effective communication channel a number of the risk will be eradicated.

The brand and reputation of the industry can be impacted by change. When a company makes appropriate changes to the quality and quantity of goods and services being produced, the reputation of the company will improve. The company will be able to establish more customers thus expanding its market. High-quality products create a good reputation for every company, and this reduces the risk of a company suffering from stiff completion created by other companies manufacturing the same products. Changes in the organization should be made in such a way that all the employees and staff members can flexibly adapt to the change (Ergu& Shi, 2014). The leader of the organization should cultivate the culture of anticipating change and make the correct assumption as to whether the change will make a positive or negative impact.

All changes made in the organization come with specific results thus leaders should put in consideration to the results that come with the suggested changes before making any implementation. All the changes made in the organization should enlighten the mission and values set aside by the company this will help the company to maintain focus in achieving its goals and objectives.

Leaders and managers of different organization have the mandate of making changes into the business, but in some instances, not all the changes made work effectively some changes might expose the company to a lot of risks and uncertainties. Therefore there is a need of welcoming different opinions and perspectives that come from other people be it the staff member or the customers all these ideas should be considered and reviewed before concluding which change is right to be made. Managers and leaders should cultivate the aspect of involving other parties in change initiation this will enhance the ideas and options available thus reducing the chances of a lot of risks from occurring (Bahr, 2014). 

The leader of the organization should encourage the employees and other stakeholders of the organization by impacting them with positive motivation. When employees are encouraged they feel appreciated and recognized as members of the organization thus, they tend to put more effort into production thus increasing both the quality and quantity of the goods and services produced. Nevertheless, the employees can come up with new innovative ideas meaning that the encouragement helps in building creativity and innovation. The risk of monotony in employees will be reduced because the suggested ideas will make different changes. Risk assessment evaluates all the potential loopholes that are prone to cause an effect to the organization in future when appropriate measures are not put in place thus all stakeholders in the organization should take part in ensuring all these risks are addressed.

References

Bahr, N. J. (2014). System safety engineering and risk assessment: a practical approach. CRC Press.

Ergu, D., Kou, G., Shi, Y., & Shi, Y. (2014). Analytic network process in risk assessment and decision analysis. Computers & Operations Research, 42, 58-74.

Li, W. (2014). Risk assessment of power systems: models, methods, and applications. John Wiley & Sons.

Martin, V. (2015). Risk Assessment in Software Release Practice in Public Organization Information Management Systems (Doctoral dissertation).

Suter II, G. W. (2016). Ecological risk assessment. CRC press.