Question

why do you think that organizational structure will have an impact on how risks are assessed?

Answer 1

Risk Assessment

This is a process in which the organization or a team evaluates all the events and situations that have passed or are going to pass and on the basis of that, they identify the certain risks that can be harmful to them and their organization. In risk assessment we need to categorize the potential risk and handle them according to their priority and nature. This helps to tackle a lot more risks effectively and efficiently without disturbing the organizational operations and make the company more capable of managing risks. Risk assessment can have an impact on the organization and its organizational structure.

Now let us discuss what impact does risk assessment has on organizational structure.

• This process makes the organization and structure more organized as for an effective and efficient risk assessment the organization requires a point to point organizational structure through which the management can easily view the process clearly and find the potential threats for the organization.
• Risk assessment process push the organization and its management to have a job profile with full clarification in which the employee will be having a planned and described job profile through which the organizational structure is fully organized on the job distribution perspective and when any issue arises or found the management can clearly understand the element or component from where to start the investigation on the basis of risk and potential danger.