Question

2. Risk and threats can be divided into four different categories; Natural, Material, Human or Organizational, and Human-caused or made. In a 500-word response, summarize each of these categories and give examples of risks and threats for each category. Then detail methods and measures security services can reduce the impact or effect of each of the provided examples.

Answer 1

Let us begin with understanding what risk/ threat is. Risk means a situation or a condition which makes the person more exposed to danger and bad situations. Risks can result into downfall of the business if not managed properly and multiple losses as a whole, but when risks and threats are managed properly and plans made well in advance by the companies then it can also help in oping up with the situation properly. There are four types of risks and threats namely:

• Natural risk: is a risk arising out of the occurrence of any natural calamity which hits the man- made structures and life on earth. For example a hurricane hit the place and destroyed the operations building of the organization.
• Material risk: are the risks which arise due to failure in performing well or showing delay in fulfilling the tasks. For example the bank is not able to recover the debts from the debtor on time due to poor recovery team.
• Human/ Organizational risk: these risks relate to employees (human element) in the organization. Risks which arise due to their illness, poor communication, poor employee management. For example in an organization the turnover is high as the employees are not understood and managed properly.
• Human caused risk: risks which organization have to face due to negligence, carelessness and dishonest behavior of employees towards the organization. For example an organization have to face the trials of income tax department as the internal auditor intentionally did fraud while auditing the statements.

Organizations have to face strong impact of these kinds of risk, but this can be avoided and reduced if following steps are taken well in advance:

• Choosing the best and safe location for the business to set up while working on the location of the building for the business.
• Using right quality of raw materials while constructing the building to be used for the business.
• Making sure that the operations of business are well organized and tasks properly distributed or delegated among the employees to ensure effective and timely completion of tasks, without any kind of delay.
• Taking regular feedback from the employees and checking out for any kind of delays, and also finding out the reason for the delay, so that corrections can be taken well in advance by the higher authorities (supervisors).
• Making sure to manage the employees effectively so that they work with dedication and hard work and no risk arise due to mis management of employees in future.
• Looking into any kind of grievances of the employees so that they do not involve into conflicts and create a poor inter- personal relationship.
• Ensuring honest behavior of employees by making them feel a part of the organization and making them participate in decision making and other terms of employment.
• Keeping strong check on the working of employees and cross checking on regular basis by the supervisors so that any intentional mistake/ fraud is caught beforehand.