risk management in businesses


Consider the following statement: ‘Risk managers should mainly focus on the consequences of an event rather than its likelihood as these consequences determine the impact on the business.

Examine the interaction between likelihood and consequences and develop an argument both for and against the statement. Your commentary should contain a critical argument with a brief introduction, stating where you stand and how you argue your case, the two cases (for and against) and then finish with a conclusion. Include an analysis of the role of a business risk manager offer some conclusions as to how prominent the role of the business risk manager should be within the wider management of the business, i.e. when compared with other management functions such as strategy, governance, product development, marketing, finance, operations, etc. Justify how you reached your conclusions. (20 marks)

Workplace Application (40 marks) • Compare and contrast the risk strategies of retain, transfer or avoid risk. Your discussion should include the key considerations a risk manager should take into account when making such decisions (e.g. cost versus benefit framework). Use your chosen work case problem to generate a working example for each of the three strategies. Recommend the strongest strategy for your chosen work case problem and justify your decision. (20 marks)

• Provide a reflective summary of your own perception of risk and how your understanding of risk, risk analysis, and risk management has developed over the session. Identify what you consider to be the three critical components of risk and risk management. Thinking back to your chosen work case problem and combining that with what you have learnt from this subject, write your manager a memo setting out a brief set of company risk policy recommendations for moving forward. (20 marks)

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