2019).The risk management is the process used to identify, assess and prioritize risks,and then coordinate and economically apply capabilities and resources to maximizeopportunities, or to minimize, monitor and control the probability or negative impactof risk events. Risk management is vital in taking proactive measures to handlepotential risks(Franke, 2007). Risk management can be applied to company throughfinancial, operational, strategic project-based risk management.2.1.1 Characteristics and FeaturesThe biggest feature of risk is uncertainty. That is to say, when more relevantinformation can be gathered, the less uncertainty the risks cam be, and it wouldbecome harder for the risk to occur. There are also other characteristics of risks. Forexample, 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, asthe company situation, the risk preference and potential gain and loss of companiesare different. Fourthly, the risks can bring abnormal profits while lead to losses(Flouris& Yilmaz, 2010). Furthermore, there are many different types of risks, such astechnological risks, business risks, financial risks and operational risks. Internal risksare often caused by human resources like unqualified employees and the inefficientoperation and control systems. As for the external environment, the risks can comefrom the policies put forward by the government and natural disasters (Baron, 2013). 2.1.2 Importance and RoleThe process of risk management can be categorized into four parts, which aim toidentify, prioritize and manage potential risks of the company. In order to realizesuccessful risk management, the company should be skeptical, proactive, and
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willingness to cater to the changeable environment and realize sustainabledevelopment (Flouris & Yilmaz, 2016). Risk management can help a company to becompetitive and take advantage position in the market. Also, good risk managementcan allow company spend less time on crisis management and preventing negativeimpacts. Meanwhile, it will increase company’s capabilities to adapt to change,increase the confidence of investors(Stewart & Mueller, 2008). The role of riskmanagement involves in all aspects of company’s operations, from contractors tomanagement. 2.2 Risk Management Used Within QantasQantas’s main business are to carry people to their destinations safety. The collectionof daily safety data and control of emissions can lead to many potential risks andproblems, both internally and externally.2.2.1 Four Examples at QantasThe first example for Qantas is the environmental problem, purely around CO2emissions and fuel efficiency. These problems can also lead to the risks related tocompliance and legal issues, which might harm the reputation of the company andhealthy risks. To solve this issue, Qantas have taken a series effective measures andimplement documents regulate its minimum pollution.
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