Question

WEEK 4 DISCUSSION #3

ANSWER THE FOLLOWING QUESTIONS BELOW:

1: Do you need to identify and manage every risk to an organization or are there risks that don’t matter? Explain why or why not and provide cases for each.

2: Read “Envisioning Risk – A Systematic Framework for Risk Visualization in Risk Management and Communication Why or why not it is important to be able to visualize risk? How can it help an organization understand risk?

Answer 1

1) Risk is very common to any type of organization. No one can ever predict what can be the future. As the situations may change in future, it can even bring loss to the organization. Therefore it is very important to recognise those risks and make strategic decisions so that adverse situations can be tackled easily once it occurred

There can be different types of risks to different organizations and it cannot be judged that which will be more riskier and which one will be less so as to leave the one which feels less risky.

Therefore for any organization it is necessary to predict every type of risk and try to manage each and every risk. If we say that certain risks do not matter to a great level, one may never know that one particular risk may lead many other risks.

Let us discuss this using an example.

A businessman has his refinery factory opened at a particular location. Though he had the license earlier when he opened the factory but it has expired now and needs to be renewed. The factory owner has his contacts with the local police and is sure that he will not be caught. And thus he is not considering this as a risk to his factory. But later if contacts get disturbed his factory could be in danger, it could be closed down if caught running without license.

So here we saw that what the owner was not considering as a risk could result in a huge risk for the organization. So no any risk should be avoided in an organization.