In: Civil Engineering
Compare the following risks: Preventable risks, Strategy risks, and External risks.
subject : risk management is construction
Preventable risks:
The risk which are generated due the internal factors in an organization are termed as preventable risk. These are easily recognizable and easy to eliminate. These risk do not produce any strategic benefit to the organization thus every organization should have a tolerance limit such that these risk should not hinder in the outcome of the organization.
Example: Deviations in actions of employees. Faulty measurements.
Strategy Risk:
These are the risks which benefits the organization. Every organization includes these risk with a proper strategy and at proper time so that it can produce the maximum benefit.
Example:
Take loan from bank, providing discounts to customers.
External Risk:
These risk are not in control of the organisation. Organization cannot stop them but should work accordingly such that negative effects can be minimized. Unlike strategy risk these do not produce any benefit.
Example: natural disasters.