1-
List the key areas of concern for risk management. Describe
them using examples.
2-
What are some of the risk treatment strategies? Elaborate on each
of them with an example.
Risk management is a critical aspect of any organization, aiming to identify,
assess, and prioritize risks followed by coordinated efforts to minimize,
monitor, and control the probability or impact of unfortunate events. Here
are the key areas of concern for risk management and some common risk
treatment strategies:
Key Areas of Concern for Risk Management
1.
Identification of Risks:
o
Example: A manufacturing company identifies potential risks
such as equipment failure, supply chain disruptions, and
workplace accidents.
2.
Risk Assessment:
o
Example: A financial institution assesses the risk of loan
defaults by analyzing the creditworthiness of borrowers and
economic conditions.
3.
Risk Prioritization:
o
Example: A software company prioritizes cybersecurity risks
over other risks due to the high impact of data breaches on
its operations and reputation.
4.
Risk Mitigation:
o
Example: A construction firm implements safety training
programs and regular equipment maintenance to mitigate
the risk of on-site accidents.
5.
Monitoring and Reviewing:
o
Example: A healthcare provider continuously monitors patient
data security measures and reviews them periodically to ensure
compliance with regulations.
6.
Communication and Reporting:
o
Example: A retail company regularly communicates risk
management policies and procedures to employees and reports
risk status to stakeholders.
Risk Treatment Strategies
1.
Risk Avoidance:
o
Description: This strategy involves eliminating the risk
by not engaging in the activity that generates the risk.
