Risk Assessment Paper Case Solution
The word ‘risk’ can be defined as the situation that exposes one to danger by any means. The danger can be to the company, a person, state or business as well. However, the danger refers to theharmfulness that could negatively affect aperson or a company.Risk assessment is a process of evaluating the potential risks that might be involved in the company’s operations, and in thepersonal life of a person.
Similarly, the risk is a measurable uncertainty that can be measured systematically. Whereas, the identification and analysis of the risk arecritical. Since, the identification refers to identifying the risk and categorizing itbecause, there are many defined categories of the risks like operational, transportation, communication, and infrastructure, manufacturing, and cyber security domain.
Furthermore, the second step is analyzing the risk that allows the company and organization to understand the nature of the risk because a risk is a threat that might harm you.There is always a certain probability of risk in any given situation. So, in theanalysis of risk it is anticipated that how much risk can affect and in what way would it upset the company’s operations? Since in the organization decreasing sales is also arisk.
Moreover, the assessment is the last step that allows the company to assess and examine the risk from its roots and preparea strategy to mitigate it in a systematic way so that company can reduce and mitigate the potential harms to its operations, people or to the organization as awhole. Furthermore, we would assess the risks associated with the IT Company and with its operations as well.(Udemy Blog, 2013)
Risk and Risk Assessment
The risk is the potential danger to the human being or the organization whereas the origin of the risk can be from any of the categories given below. Risks for humans include the physical harm, psychological harm, social and economic harms and natural disasters as well. Furthermore, the increasing complexities in today’s world have emphasized the individuals and organizations to assess the potential risks that they found to be adanger to them.
Risks for the Individuals personal and professional
Meanwhile, an individual is a person who lives in society having characters and roles that he performs on a daily basis either be it personal or professional. Sinceeveryday there are possible events that bear some risks in both segments of the life personal and professional as well. Meanwhile, in the individual assessment of the risk, the professional segment is also important
Furthermore, in personal life,there may be many potential risks to the individual and to his families like the physical harm caused by the surrounding external environment, and psychological harm that is caused by the internal and external environment either due to a personal unfavorable event caused by professional life or environmental disastors. Similarly, the psychological harm might also be caused by the social, economic, and natural disaster.
However, it is the identification of the potential risks which is most important. See Figure 1. Similarly, the professional segment of an individual’s life has risks as well like job dissatisfaction, work-lifebalance, workplace stress, and risk of being fired from the job. Meanwhile, these all are risks associated with the life of a person.
Capacity and Security
Meanwhile, therisk is not itself a danger. However, it is an indication offor an event that might occur over a certain probability which may depend on the capacity and security of that situation. However, the capacity does determine the security of something. For e.g.if a company had invented a product in the market that has not been so successful. Whereas, the copyrights for the companyarevery important. Consequently, as the product is diffused in the market,its capacity increases as well.
Furthermore, the increased capacity requires security of the products through a systematic way by engaging with the governmental agencies to take appropriate actions against the fraudulent elements in the markets that sell similar products with thesame label in the black market. So, for the company, this is a huge risk that company might its product might suffer at its initial phases of marketingand selling. So, the increased capacity of the company would require security as well.(Newsome, 2014)
Indeed, the capacity is company’s increased customer base in the market due to diffusion of its products that are widely purchased and used in different markets by the consumers. So, the increased company’s capacity is anevent that has arisk for the company to mitigate it through properly identifying and assessing it. However, it is also important to analyze the probability that risk would occur, and what potential returns would it have regarding thecompany..........................