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QUESTION
Explain risk assessment and risk management. Discuss how risk management combines science and other social factors.
| Subject | Business | Pages | 2 | Style | APA |
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Answer
Risk Assessment and Risk Management
Unprecedented events may occur in organizations creating situations that cause risk. Therefore, to mitigate these risks from happening in organizations, risk management and risk assessment are scientific strategies to help grow and succeed. This paper aims to explain risk assessment, risk management and help understand the connection between risk management to science and other social factors.
Risk Assessment
Risk assessment is a systemic process that incorporates identification, analyzing, and evaluating risks that may cause potential harm to an organization. For a risk assessment to be successful, it should incorporate three stages; risk identification, risk analysis, and risk evaluation (Abhi, 2016). Aven (2016) adds that risk identification helps an organization table all potential risks. Risk analysis incorporates assessing identified risks in their likelihood of them happening and the potential impact if they happen (Aven, 2016). Risk analysis includes a scientific methodology for proper assessment (Dunkelberger, 2019). Lastly, risk evaluation helps categorize the risks that help with finding which can be tolerated and need action to mitigate risks.
Risk Management
Wyss (2017) defines risk management as undertakings that help manoeuvre through risks in an organization by integrating prevention, reduction, adaptation or sharing of risk to a tolerable level. Risk management adopts any of the three principles to manage risks; avoidance, reduction, and retention by integrating risk assessments to help with understanding the type of risk at hand (Wyss, 2017). Dunkelberger (2019) explains that the intended aim for risk management is to prevent the past by preparing for the future.
Risk Management and its Relation to Science and Other Social Factors
Risk management incorporates science and other social factors in the steps taken to achieve risk reduction in the future. These steps for a successful risk management process are identification, assessment, mitigation, monitoring, and reporting risks. Ramos-Peralonso (2014) explains that science helps present impartial results to mitigate risks. Through concrete evaluations based on scientific empirical evidence, organizations can weigh evidence, address unpredictable effects of the risk, and categorize the risk in its severity. Ultimately, science and other social factors are considered when making risk management strategies for risks to help in preventing reoccurrence in the future.
References
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Abhi, G. (2016, April 7). Risk assessment and risk management – Do they mean the same THING? Cm-Alliance.com. https://www.cm-alliance.com/news/2016/04/risk-assessment-risk-management-mean Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), 1–13. https://doi.org/10.1016/j.ejor.2015.12.023 Dunkelberger, D. (2019, September 18). Risk Management, Risk Assessment or Risk Analysis | I.S. Partners. Https://Www.ispartnersllc.com/. https://www.ispartnersllc.com/blog/risk-management-risk-assessment-or-risk-analysis/ Ramos-Peralonso, M. J. (2014). Risk Management. Encyclopedia of Toxicology, 177–181. https://doi.org/10.1016/b978-0-12-386454-3.00536-4 Wyss, G. D. (2017, August 1). Risk Assessment vs. Risk Management. Www.osti.gov. https://www.osti.gov/servlets/purl/1431975
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