Study Set Content:
The process of Risks management
Setting goals, Identifying risks, Evaluating risks, Choosing the methods of managing the risk, Carrying out these methods, Reviewing the results
- The first step in the process of risk management is to create a set of goals.For a business, the chief goal is to ensure the survival of the firm in case of losses caused by events such as fires or liability suits. With this, the company should plan on how to determine or identify the risks within their proximity or location.
Setting Goal
- The next step is to identify the risks that a household or firm is exposed to and strive to find ways of preventing or controlling them such as consulting legal advisers on how to avoid liability losses. For a company department, there should be a representative who monitors all business activities and makes reports to the manager or immediate supervisor.
Identifying risks
- After the risks have been identified, the next step is to evaluate how serious they are.
Evaluating the risks
- The final step in risk management is reviewing the results. A strong information system is needed to keep track of losses and take action when it is needed.
Reviewing the results
is one of the most commonly used tools to assess internal and external environments of company and is part of the company's strategic planning process
SWOT ANALYSIS
- can be done for a product, place, industry or a person. helps with both strategic planning and decision making as it introduces opportunities to the company as a whole looking birth to generating strategic alternative.
A SWOT Analysis
Characteristics of a business which give it advantages over its competitors
Strengths
Characteristics of a business which make it disadvantageous relative to competitors
Weaknesses
Elements in a company's external environment that allow it to formulate and implement strategies to increase profitability
Opportunities
Elements in the external environment that could
endanger the integrity and profitability of the business
Threats
USED-QUESTIONS STRATEGY
- How can we USE our strengths?
- How can we STOP each weakness?
- How can we EXPLOIT each opportunity?
- How can we DEFEND against each treat?
are established at the organizational, departmental, or individual level. They have something to do with the direction that an individual or organization wants to pursue
Objectives
- prescribes a definite scope and suggests direction to maximize the efforts of a manager.
Goals
