The Art of Risk Management

Learn to Manage Risks Like a Pro

Damon Lundqvist

• Publisher: JNR Publishing
• eBook ISBN: 9781311288936
• Topic: Business
• Subtopic: Decision Making
• Index: Business

You may read/download this on your Mobile devices and PC/Mac Computers.
Risk management is the identification, assessment, and prioritization of Risks of uncertainty on goals/objectives followed by coordinated and cost-effective application of resources to lessen, and manage the risks, and likelihood and/or impact of failures (just in case) or to optimize the percentages for success. In other words, in this book you will learn to Completely Eradicate, Avert, Defer Risks so that we can minimize the downside effects and maximize our percentages for success. Risk Management principles apply anywhere in life, not just business and related applications. This is all about playing the stats! =================
TABLE OF CONTENTS
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Definition Of Risk Management
Do Not Be Afraid Of Risks, Manage Them!
What Is Fear
Handling Fear
Recognizing The Threats
Risk Avoidance
Threat Prevention
Risk Maintenance
Risk Transfer
Work Environment Safety
Management Commitment
Accountability
Safety Training
Hazard Control
Investigation Of Accidents And Incidents
Participation
The Decision Makers Must:
Basic Steps Involved In Risk Management Practices
Natural Disasters
Joint Ventures
Having Contingency Plans
Making A Risk Management Plan
Crisis Management Plans In Place
Vulnerability Risk Management
Enterprise Risk Management
Business Outcome Risk Management
Project Risk Management
Is Your Money Safe With The Banks?
Insurance Tools To Mitigate Risks
Significance Of Insurance

Definition of Risk Management

Risk management is the recognition, assessment, as well as prioritizing of dangers of uncertainty on goals followed by coordinated and cost-effective application of resources to lessen, monitor, and also manage the likelihood and/or impact of disappointing events or to optimize the percentages for success.

The majority of people consider fear an emotional state to be avoided at any costs. Right here, it is considered a sign of change and also growth. Could that actually be?

I'm not certain where this affirmation comes from but this is completely untrue.

The approaches to handle dangers (unpredictabilities thanks to unfavorable effects) generally consist of moving the risk to an alternate event, staying clear of the risk, lowering the unfavorable impact or possibility of the hazard, and even taking some or all of the possible or true effects of a specific threat, as well as their reverse possibilities.

Do not Be Afraid Of Risks, Manage Them!

Dangers could originate from uncertainty in financial markets, danger from job failings ( legal liabilities, credit rating risks, natural calamities, deliberate attack from an adversary, or events of unclear or unpredictable root-causes.

What is Fear

Every human has felt this natural feeling and one that has actually allowed people to make it through is by running away from the dangers. Some go and attack the causes of fear directly, which is how it should be.

Fear might not really feel good, yet it can keep us away from harm, as crazy as that sounds. There are physical as well as psychological elements to be afraid of and I'm sure most of us have all had them.

When fear strikes, blood flows to the extremities, the legs and also arms, preparing us to run away from the dangerous situation. There is a temporary freeze, that chilly feeling that streams through the physical body, while the brain processes the information in front of it, whether to take flight or fight it out.

Once dangers are determined, it is the duty of your specialist team to provide choices on the minimizing or avoidance of the issue. They might also help to focus on locations for action and to establish a risk management plan.

Risk management is the premier strategy readily available to make sure of the continuing success of your business and safety against the risks. Evidence of thoughtful consideration to this inspires faith in investors, customers and investors alike, and the benefits of increased security and productivity will help you to completely far outweigh the preliminary expenses included in taking on proper Risk Management procedures.

Handling Fear

- Focus. You can make a decision to completely focus on the fear in starting out a new, unfamiliar undertaking, or you can concentrate on the process itself. The second will help you to bring much more depth to your objectives.

- Re-label thoughts. Fear and excitement are so similar that most of us frequently confuse the two. Re-label some of the fear as excitement and see if that starts to ring true for you.

I have worked with many people who, as soon as they have actually attained the improvements, talk as if they have nothing to be pleased about. It takes guts to face fear involving the unknown and of issues that can make a mere mortal flinch.

Stepping too far out of the comfort zone can present fantastic threat of failure and can be just as bad in one's life as controlling fear by continuing to be within one's comfort zone.

It's perfectly fine to keep some fear while moving out, taking on reasonable risks, experiencing some invigorating fear. Fear of the unknown is kept low and fear of failure is reduced if only we go forward and face it, rather than run away!

For ventures that involve low levels of threat there are other choices that can give you a sufficient degree of immunity. It works by highlighting the possibility of failures in your business ventures, and seeking out all the information to weigh up what level of risk is indeed acceptable for that particular situation or case.

- Limit expansions to just a couple of locations at a time. Development requires time, energy, and perseverance. Expecting to make lots of changes at the same time will be counterproductive even dangerous if you can't watch over the assets carefully and be overwhelmed by them.

- Often most of us have assumptions about things that scare us so that we don't stray from our comfort zones. These are not necessarily based on facts and undoubtedly are incorrect and unreasonably frightening.

There are various ways to go about ensuring that your enterprise has a satisfying strategy to attain a safe and continuously improving work environment.

Recognizing The Threats

Recognizing that a danger exists is a huge beginning. It's sort of like admitting you have a problem when you're trying to correct a bad habit. Change happens when we admit something is wrong to begin with.

After risks are recognized, they need to be prioritized and the effect of that particular danger needs to be assessed. After the response strategy is identified, the schedule, spending plan, communications and any other part of the task strategy ought to be adjusted to allow for the newly minted threat handling strategy. The threat and responses also need to be tracked to make sure the response was correct and that no new dangers have actually popped up.

The inescapable fact is that every single day, companies incur losses and experience operational disruptions due to failures by employees, incorrect application of procedures and innovations as well as intentional disobedience to internal controls or safeguards.

Risk avoidance

Identifying all of the dangers your company is dealing with and thereafter identifying the specific steps or counter-measures to avoid them. Some risks can be avoided while some have to be handled directly in order to progress or improve your condition. Choose your battles. Avoid unnecessary risks that do not promise adequate returns.

Threat Prevention

Assuming you have done your homework and you're well aware of the risks involved in a particular course of action, you can now take measures to prevent or minimize these dangers. For example if you are operating a car repair establishment, grease is all over the floor and actually increases worker safety hazards. We can't prevent worker hazards by eliminating the slippery floors and asking employees to wear safety shoes. In a construction site for example, everyone is required to wear hard hats which minimizes hazards from falling debris. It does not completely eliminate those risks but it minimizes the risk percentages.

Risk Maintenance

Fact: You cannot run a company without handling any dangers whatsoever. It's well understood by every entrepreneur that the higher the risk , the higher the rewards or as the old cliché goes. Preserving or maintaining the level of acceptable risk suggests having a strategy in place to deal with risks that are inevitable. Those in the armed forces for example cannot realistically expect to completely eliminate all risks completely! Risk is organic to the job. All they can do is maintain current levels or lower the pre-existin...

Table of contents

• Definition of Risk Management
• Do not Be Afraid Of Risks, Manage Them!
• What is Fear
• Handling Fear
• Recognizing The Threats
• Risk avoidance
• Threat Prevention
• Risk Maintenance
• Risk Transfer
• Work Environment Safety
• Management Commitment
• Accountability
• Safety Training
• Hazard Control
• Investigation of Accidents and Incidents
• Participation
• The decision makers must:
• Basic Steps Involved in Risk Management Practices
• Natural Disasters
• Joint Ventures
• Having Contingency Plans
• Making a Risk Management Plan
• Crisis Management Plans In Place
• Vulnerability Risk Management
• Enterprise Risk Management
• Business Outcome Risk Management
• Project Risk Management
• Is Your Money Safe With The Banks?
• Insurance Tools To Mitigate Risks
• Significance of Insurance