Risk Management Essay Example | Topics and Well Written Essays - 2000 words - 1

Risk Management - Essay Example This will directly led to the third principle of transparency and inclusion, which means that stakeholders have knowledge of the risks which includes them in the knowledge of the potentials. The fourth principle is that risk assessments are used for the decision making process, which allows for informed decisions. Finally, the principle of using the best possible information also adds value to the assessments, making risk have meaning and purpose when analyzed against the benefits within a decision making process. The following paper will discuss these five principles and their influence on risk management assessments. The Five Most Important Principles of Risk Management 1. Introduction There are a great number of issues that arise when considering managing risk within an organization. The five most important principles of risk management are to address uncertainty explicitly, be tailored to the needs of the organization, promote transparency and inclusion, be a part of the decision making process, and be based on the best available information (Wood 2012, p. 32). Without these five guiding principles, risk management would be difficult and without the value that makes it an essential part of the processes of the organization. ... .if you know neither the enemy or yourself, you will succumb in every battle† (Wood 2012, p. 119). Risk management is the art of creating knowledge of the organization and knowledge of the competing forces in order to win the battle of competition. Risk management defines the organization for its weaknesses and vulnerabilities while also defining the external forces that could cause issues through those weaknesses and vulnerabilities. 2. Addressing Uncertainty Explicitly It is the uncertainty of the future that defines the need for risk management. A good analysis can be done in a short time or could be longitudinal in its process. A good analysis will also have created no specific perspective from which conclusions have been drawn – there is no point of view. Risk is surgically incised, the offending aspect of business is taken out, dissected for its value, and then placed into a treatment plan through which the effect that it might have is mitigated through solutions t hat have been designed towards creating effective decisions (Yoe 2011, p. 95). In order to create an effective identification of the risks that will present themselves, the risk manager must be precise. General risk identification does not provide enough information for the manager to work towards mitigating that risk. Risks must be aggressively and explicitly identified so that they can be addressed through meaningful decision making and action. The identification of risk means that it must be explicit in order to classify the risk so that it may be prioritized. Without knowing exactly how the risk is manifested, the use of that information is not valuable (Whitman 2010, p. 167). A risk manager must be precise

Business Management as a career Essay Example | Topics and Well Written Essays - 1000 words

Business Management as a career - Essay Example Your decisions may make or break the organization and the cost of making wring decisions is very high as compared to small businesses. At such a high level of risks and costs associated with mistakes, the decision makers do get a good remuneration packages. Salaries and other benefits for the top level management of such huge businesses are relatively in multiples of those for small businesses. Even in the small groups, the business management professionals are relatively high paid than the rest of the workforce. This is because there are a few people with good leadership and management skills to effectively manage the operations for such companies. Coming back to the career issue, what else can a person go for Amongst known professions, IT had a boom for a few years when everyone wanted to get into information technology and its related fields, but it ended soon. Chartered accountancy, a very tedious option, is nevertheless a very successful career choice for a number of people, but then one can not get the top hand in this profession as finance is a merely a supportive function in many organizations. Engineering and medical were also popular for some time, but then the market got flooded with professionals. Business management is a focused profession requiring a high level of knowledge of the subject and the market your business is dealing in. besides knowledge, the management and leadership skills are also required to manage effectively the operations of any business, whether it be a small owned confectionaries business, or a multinational FMCG or an automobile manufacturing firm. The qualifications required for business management are not the sole criterion for success. The major requirement is the dynamism and the abilities to run and manage business operations. The business manager should be able to forecast and meet the demands of its customers and satisfy them with the offering, keeping a long term profitable customer relationship. The acceptable qualifications, to judge candidates on a common ground, may be masters in business administration. MBA, a known business qualification, is specifically focused on business management and administration. This covers various aspects of modern business as a part of its curriculum. MBA curriculum and course content includes the teaching and case-based analysis in various business subjects including, but not restricted to, finance, accounting, marketing, management, human resource management and other optional or elective courses. An MBA has the option to major in any of the available fields like finance and accounts, HRM, marketing, MIS and others as per the offering of the universities. As stated in an article on self-employment "Working for oneself holds great attraction for many people. Some view self-employment as a chance to advance professionally by becoming their own boss, earning more money, or gaining status. Others seek the personal advantages it may provide, such as the ability to work at home, have more flexible working hours, or create profitable ventures from activities they enjoy. Still others want to try something different from their current job or the one