Question

It is argued that organization can be a factor in decision making. In other words, they can influence decision-making in favor or against a decision maker. It is also argued that organizations or institutions by providing the framework or boundary, they shelter decision makers from making decisions that would have deleterious effect to other the decision-makers and the organization. Please discuss how organizations or institutions can act as a shelter against risk.

Answer 1

Organization or Institutions can act as a shelter against risk because they provide a framwork of decisions to be taken in favor of the economy. Since the organizations already have knowledge about the risks and its repercussions, it has the ability to deal with such risks. It makes sure of the effectivenss and efficiency of the functioning as well. It is highly confident in achieving its goals and has improved regulatory measures. Also, since an organization comprises of a group of people, it makes sure every minute details are accounted for and also every department is equally represented in the decision making.
Other benefits may include

• the advantage of varied views with respect to ways of tackling with risks
• An expert opinion in every sphere
• greater degree of participation and ecouragement to increase efficiency