Question

Write an essay of 1000+ words on the topic ‘The Role of Risk Assessment in the Strategic Management Process.

Answer 1

The Role of Risk Assessment in the Strategic Management Process

Strategic risk assessment can complement and leverage the strategy implementation processes in an organization toward enhancing risk management and governance. Management teams and boards challenge themselves and their organizations to move up the strategic risk management studying. Understanding how risk is judged and embedded in the organization’s strategy setting and performance measurement processes and understanding the organization’s strategic risks and the related risk management processes are the main aspects. They are , risk management in general and enterprise risk management. Some risks may reflect exposures will not threaten the overall health of an organization although harmful or its ability to ultimately meet its business objectives. Strategic risks are those risks that are most resulting to the organization’s ability to implement its strategies and achieve its business objectives. Strategic risk management” then can be defined as “the process of assessing identifying the risk in the organization’s business strategy.

Risk is an integral part of every company’s strategy, strategic risk management is a necessary core competency. A strategic risk assessment is a continual process and a systematic process for assessing the most significant risks facing an enterprise. The strategic risk assessment process is designed to be tailored to an organization’s specific culture and needs. A risk management process and the resultant reporting must reflect and support an enterprise’s culture so the process can be inserted and owned by management. .

The Strategic Risk Assessment Process are;

1. Attaining a huge level of understanding of the strategy of the organization or firm
2. Gather views and data on strategic risks

3 Prepare a preliminary strategic risk profile

4 Justify and conclude the strategic risk profile

5 create a strategic risk management action plan for the project.

6 Communicate with strategic risk management action plan the strategic risk profile

7 Executes the strategic risk management action plan

The strategic risk management is,

Shifts in consumer demand and preferences.

Legal and regulatory change.

Competitive pressure.

Merger integration.

Technological changes.

Senior management turnover.

Stakeholder pressure.

A strategic risk management committee is dominant because it manages risks that can significantly impact a company's ability to attain its strategies and business objectives. .risk management is to identify potential problems before they occur, or, in the case of opportunities, to try to leverage them to cause them to happen.

The four risk management strategies

Avoidance

Sharing

Reduction

Retention

Executing effective risk assessment and management across the strategic plan greatly improves the chances of successful.

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