Risks Management Problems Free Essay Example, 2750 words

This paper tells that the risk management process has become a vital aspect of any organization s operations for decades because of the possible negative impacts of risks on organizational successes. Therefore, it has become imperative that organizations should formulate or initiate dynamic risks management process that would help them overcome the threats of risks in their operations. According to the research findings, it can, therefore, be said that some of the popular theories about how best to handle organizational risks include (i) handling it as a part of the business strategy; (ii) and seeing as a leadership issue that must be tackled in the organizational management. Business strategy: - Many experts believe that organizations need to build risk-averse strategies into their business development in order to counter unexpected problems that may arise from unanticipated risks (Culp, 2001). Having risks management as part of the business strategy would necessitate that risks ar e constantly measured, quantified, and controlled as every other factor required to achieve optimum performance of the concerned business (Culp, 2001). Leadership perspective: -Looking at risk management as part of the leadership responsibility in an organization has been regarded as a vital force in stemming the problems ensuing from unforeseen risks (Alston, 2003). We will write a custom essay sample on Risks Management Problems or any topic specifically for you Only $17.96 $11.86/pageorder now This requires that business leaders are expected to perceive themselves as risk-takers, risk-managers or risk-averters, and this would be reflected in the nature of the decisions they make in the organizations (Alston, 2001). Many risk management concepts have failed to work, simply because the people at the helms of the organization resist or refuse to wholeheartedly support the risk management initiatives. But in as much as the leadership itself, if required to handle the risk in an organization, it becomes easier and more productive to avert risks in that organizations.