ORDER-Go_through_plz[1].doc - Running head RISK MANAGEMENT...

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Running head: RISK MANAGEMENT 1 Risk management Student Name Course code Lecturer Institution Date of submission
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RISK MANAGEMENT 2 Introduction Risks are inevitable and are not specific to any company, and may be caused by both internal and external factor in any project. However, risks can be managed and poor management of risks can lead to financial and economic crisis and may result in collapse of stock exchange markets. The paper will analyse how the management team can use a number of models in analyzing whether their risk management strategies can be used in analyzing and understanding the management of organizational, institutional and personal risks. Question 1: Analysing risk management The ASB (1998) recognized six essential risks and these are demand, remaining quality; diagram, execution/openness, potential changes in huge costs, and their impact within a specific timeframe. Additionally, an adjustment may be made for business, macroeconomic and political risks. Macroeconomic risks include the interest rate risk, financing cost risk, liquidity risk and change management risks. The presence of macroeconomic risks can, consequently, cause significant risks. For example, advance cost or demand risk can cause credit risk. Risks may be classified as exogenous and endogenous, with the last being those risks that can be successfully administered through managing project or organization activities (Hoyle et al, 2007). The organization risk models supporting VFM has been in existence for quite a while prior to what is currently being asserted that risks should be assigned effectively and managed more appropriately. On a crucial level, this should incentivise each social event to be in a way that investment with the risk apportioned to them should upgrade the general profitability of the organization (Patel, 2008). When Tony Hayward got the opportunity to be CEO of BP, in 2007, he promised to make security his top agenda. Among the new rules he built up were the necessities that all specialists use coffee holders while walking and avoid calling while driving. Following three years, under the watch of Hayward’s, the Deepwater Horizon oil rig occurred in the Gulf of Mexico, bringing on a standout amongst the most exceedingly dreadful man-made cataclysms ever. A U.S. inquiry commission concluded that the fiasco, to organization disillusionments, had crippled the role of individuals required to determine the risks that they faced and to truly evaluate, confer, and address them. Hayward's story reflects a normal issue in risk management (Martinez & Aguirreamalloa, 2012). Notwithstanding all the discussion, risk management is viewed as a consistence issue that can be lit up by drawing up stores of precepts and guaranteeing that all labourers follow them. Various rules are sensible and do decrease a few risks that could lead to a great impact on the organization (Di & Øksendal, 2011).
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RISK MANAGEMENT 3 Understanding types of risks There are several types of risks that can be analysed in the context of Malaysia and these are preventable risk, strategy risk, and external risk.
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