Identifying the basics of understanding the concept of Risk

QUESTION

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There is good content in the text directed toward identifying the basics of understanding the concept of Risk. Then, in this board, summarize the most important message that the author presents regarding Risk. You can accomplish this easily by mentally thinking: “What is the main message of Chapter 4?” Think of an example of your own that would help to formulate a logical working mental concept of Risk. Note: we have a separate course that addresses Risk. Therefore, any preliminary commentary would be appropriate.

answer 1

Chapter 4 is mainly focused on the risk assessment and management and showed how is that thing important for establishing a BC program. Risk management is a procedure of understanding, managing, and analyzing individual and overall risk events by reducing threats and maximizing opportunities. These threats or risks could come from a wide assortment of sources, including strategic management errors, natural disasters, and accidents. As a result, a risk management plan increasingly includes companies’ and government processes for identifying and controlling threats. Besides that, that’s chapter provides basic ideas about how to do risk mitigation for projects and businesses, such as

Each risk is reviewed in the context of the mitigating controls that are in place as a preventative measure.
Appropriate action is then determined based on the level of residual risk.
These responses could be risk avoidance, risk sharing, risk acceptance or risk mitigation which mains actions to reduce the impact or likelihood of occurrence.
Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), 1-13.

Burtles, J. (2016). Principles and Practice of Business Continuity: Tools and Techniques Second Edition. Rothstein Publishing.

Answer 2

Every business faces threats and risks to its operations from time to time, and thus business continuity is vital while experiencing risks. Risks are different for every entity. There are two primary ways of managing risks; enterprise risk, which affects the business in terms of facilities, people, assets and information technology, and operational risk, which affects business operations. These vulnerabilities may include governance, analysis of downtime, and report-making processes. Assessment and management of risk in any business are as essential as the business operations are to the administration (Burtles, 2016).
The authors state that it is critical to develop a plan or set of strategies to deal with any situation that may arise, but in doing so, identify significant risks and threats and then plan accordingly. A business organization needs to have a risk management protocol to counter the risks when they emerge. Through Grid impact analysis, an organization can analyze complete systems to identify its critical components (Burtles, 2016). This approach will enable the business to assess the extent and quality of risk in any of the components. It also can be done by checking all the areas concerned, individually evaluating them, and coming up with the entire risk’s impression.
Therefore, risk can be explained as any factor that interferes with the normal operations of an organization and threatens to deter its functions. It can be indirect or direct, visible or invisible, and warrants an organization to develop a business continuity plan to safeguard it from the risks. Developing the business continuity plan will ensure that the organization or business survives the risks and mitigates the threats likely to be faced due to the risks.