The risk management is the process used to identify assess and prioritize risks

The risk management is the process used to identify

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2019).The risk management is the process used to identify, assess and prioritize risks, and then coordinate and economically apply capabilities and resources to maximize opportunities, or to minimize, monitor and control the probability or negative impact of risk events. Risk management is vital in taking proactive measures to handle potential risks(Franke, 2007). Risk management can be applied to company through financial, operational, strategic project-based risk management. 2.1.1 Characteristics and Features The biggest feature of risk is uncertainty. That is to say, when more relevant information can be gathered, the less uncertainty the risks cam be, and it would become harder for the risk to occur. There are also other characteristics of risks. For example, risks cannot only lead to negative results, the outcomes can also be positive. Also, it will be harder for people to predict risks when time periods last longer. Thirdly, risks are specific and unique and the solution for each risk can be various, as the company situation, the risk preference and potential gain and loss of companies are different. Fourthly, the risks can bring abnormal profits while lead to losses (Flouris& Yilmaz, 2010). Furthermore, there are many different types of risks, such as technological risks, business risks, financial risks and operational risks. Internal risks are often caused by human resources like unqualified employees and the inefficient operation and control systems. As for the external environment, the risks can come from the policies put forward by the government and natural disasters (Baron, 2013). 2.1.2 Importance and Role The process of risk management can be categorized into four parts, which aim to identify, prioritize and manage potential risks of the company. In order to realize successful risk management, the company should be skeptical, proactive, and
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willingness to cater to the changeable environment and realize sustainable development (Flouris & Yilmaz, 2016). Risk management can help a company to be competitive and take advantage position in the market. Also, good risk management can allow company spend less time on crisis management and preventing negative impacts. Meanwhile, it will increase company’s capabilities to adapt to change, increase the confidence of investors(Stewart & Mueller, 2008). The role of risk management involves in all aspects of company’s operations, from contractors to management. 2.2 Risk Management Used Within Qantas Qantas’s main business are to carry people to their destinations safety. The collection of daily safety data and control of emissions can lead to many potential risks and problems, both internally and externally. 2.2.1 Four Examples at Qantas The first example for Qantas is the environmental problem, purely around CO2 emissions and fuel efficiency. These problems can also lead to the risks related to compliance and legal issues, which might harm the reputation of the company and healthy risks. To solve this issue, Qantas have taken a series effective measures and implement documents regulate its minimum pollution.
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