Identifying and Managing Risk Essay Example | Topics and Well Written Essays - 750 words

Identifying and Managing Risk - Essay ExampleThis is because once trys atomic account 18 identified the in effect(p) strategies and techniques are put in place to ensure that they do not moderate negative effects on the portfolio or project. By implication, it pot be said that it is not beneficial to try to deny the reality of the existence of risk. Rather, the existence of risks must be appreciated, identified and embraced. More importantly, the right techniques must be in place to managing risk. Kallman and Abdali, Mouath and Qusai have both come up with a number of risk management techniques which share well-nigh similarities and differences in terms of their implementation and usage.Reading through Kallman one finds three major risk management techniques that are highlighted by the writer. These are risk avoidance, risk tolerance, and risk acceptance. Writing on situations under which either of these may be deemed as appropriate for an make-up, Kallman emphasized that I f a cost-benefit analysis shows the downside is just too large for the organizations risk tolerance therefore avoidance is a extraneous choice. The author continued to advise that If the situation falls within the organizations risk appetite or tolerance, however, then acceptance is the appropriate choice. From these two quotations, the technique of risk management is clearly outlined. It can be far-famed that Kallman advocates the use of systematic analysis of risk by weighing the restore of risk on the organizations activities and programs. Once such weighing is done, it will be possible to determine the exact impact of the risk to the organization. By so doing, risks that can be contained without any significant negative impact can be allowed to remain so that the efforts to management can be sent on those risks that pose some levels of threat through risk tolerance.