Risk management planning is undertaken to be able to identify the risks in a business, assess them, formulate strategies to mitigate the risks and monitor the resultant performance of the business. Preparing a risk management plan requires identification of potential risks to a business. This is done through understanding of the scope of possible risks which will be essential in developing a realistic, cost effective strategy for dealing with the risks. Assess the business need determine the risk. Risk assessment process is also essential and is done with proper knowledge on a business key services, staff, resources and major areas that could result to failure of the business. Risk management process will therefore involve systematic application of management policies, practices and procedures to all the tasks of establishing the context of business risks, identifying, analyzing, assessing, treating, monitoring and communicating (Culp, 2001). Each cycle in the process is vital since it contributes progressively to business improvement. This is through providing the management with greater insight into available risks and their impacts on operation of the business.
To best analyze the risks and come up with the best strategies we got organized into a team having a good understanding of the tasks and objectives of the area of the business that needed to be analyzed. The marketing activities of the business bring both success and failure to a business if not carefully undertaken. Our risk management planning process was to determine the various risks associated with a business marketing activities and come up with best ways to help the business solve them. Understanding the internal environment of the company was our first stage in the process. It involved getting familiarized with the risk management philosophy of the business and various integrity and ethical values including the business commitments to competencies. Also we looked at the organizational structure with how authority and responsibilities are assigned and various marketing standards.
Introduction
Risk management planning is undertaken to be able to identify the risks in a business, assess them, formulate strategies to mitigate the risks and monitor the resultant performance of the business. Preparing a risk management plan requires identification of potential risks to a business. This is done through understanding of the scope of possible risks which will be essential in developing a realistic, cost effective strategy for dealing with the risks. Assess the business need determine the risk. Risk assessment process is also essential and is done with proper knowledge on a business key services, staff, resources and major areas that could result to failure of the business. Risk management process will therefore involve systematic application of management policies, practices and procedures to all the tasks of establishing the context of business risks, identifying, analyzing, assessing, treating, monitoring and communicating (Culp, 2001). Each cycle in the process is vital since it contributes progressively to business improvement. This is through providing the management with greater insight into available risks and their impacts on operation of the business.
To best analyze the risks and come up with the best strategies we got organized into a team having a good understanding of the tasks and objectives of the area of the business that needed to be analyzed. The marketing activities of the business bring both success and failure to a business if not carefully undertaken. Our risk management planning process was to determine the various risks associated with a business marketing activities and come up with best ways to help the business solve them. Understanding the internal environment of the company was our first stage in the process. It involved getting familiarized with the risk management philosophy of the business and various integrity and ethical values including the business commitments to competencies. Also we looked at the organizational structure with how authority and responsibilities are assigned and various marketing standards. It was vital that the team identify the objective setting including strategic objectives, related objectives, selected objectives, risk appetite, and risk tolerance levels of the business. Identification of the marketing events was done with focus on influencing factors by use of various event identification techniques. We also looked at the event interdependencies and the various marketing categories making as able to distinguish between risks and opportunities for the business. The team then began risk assessment process by looking at both inherent and residual risks. We determined the likelihood and the impact associated with each risk identified by researching on various data sources available and consulting from marketing experts. Various risk assessment techniques are needed to determine the event relationships (Wells, 2004). Creation of the risk response measures was a little demanding because we had to evaluate various possible responses that would be effective. The selected responses were again analyzed and created a portfolio of views. Control activities were integrated with the risk responses and the types of control activities were considered for implementation. Various policies and procedures for handling the risks were established and ensured that they were entity specific. It was important that information and communication process be maintained to enhance the ongoing monitoring activities. There was also a separate evaluation provided by the team where deficiencies were reported on time. The entire risk management process was detailed and involved various activities which required that the team form interpersonal relationships and maintain openness in contribution of the ideas
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Frequently Asked Questions
What is the main goal of risk management planning?
The goal is to identify, assess, and formulate strategies to mitigate risks while monitoring the performance of the business to ensure improvement.
How does a team identify potential marketing risks?
Teams use event identification techniques, focus on influencing factors, and analyze event interdependencies to distinguish between risks and opportunities.
What is the difference between inherent and residual risks?
Inherent risk is the risk level before any controls are applied, while residual risk is the remaining risk after management has implemented response measures.
Why is understanding the internal environment important for risk assessment?
It helps the team get familiar with the business's risk philosophy, ethical values, organizational structure, and how authority is assigned.
What are risk appetite and risk tolerance?
Risk appetite is the amount of risk an entity is willing to accept in pursuit of value, while risk tolerance is the acceptable level of variation relative to objective achievement.
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- David Moss (Author), 2010, Risk Assessment Evaluation Process, Munich, GRIN Verlag, https://www.grin.com/document/270812
