Role of Risk Management Essay

Role of Risk Management

The role of risk management in justice and security organization

Risk management is defined as “a practice and process by which risks and threats are properly evaluated and dealt with and safeguards implemented accordingly so as not to interfere with, disrupt, or otherwise harm the organization’s ability to accomplish its underlying mission” (Horton & Mugge 2003, p. 21). Risk management is very important in justice and security organization as it identifies threat and risk that might disrupt the organization’s missions.

It provides a first line of defense to the organization

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The role of risk management in justice and security organizations is a big business as risk is ubiquitous, pervasive, diverse and global (Kemshall 2003, p. 3). Risks appear in diverse sizes and have different impact and consequence.  In some cases risks are associated with living in high crime areas but it also come as a global occurrence with very disastrous impact such flooding from climatic change. Kemshall contended that risk “is a complete phenomenon, not simply about calculating the odds of mischance, hazard, or danger” (p. 4).

Given the consequence of risks, risk management of justice and security organization is a gigantic task as this is the first line of defense of such organization. The risk management team identifies the risk and evaluates its threats and prepares contingencies that will safeguard the organization and all the stakeholders that will likely to be affected by such risks.  The role of risk management in justice and security organization is therefore to identify risks and other threats to the organization, evaluate it strength and the possible consequences, and to safeguard the organization from any harmful impact it may create. Risk management provides the organization safety management, awareness of the organization’s strength and weaknesses, and it safeguard the organization from potential losses and damages.

Risk management serves as the organization’s tool for clearing its paths

Another role of risk management in justice and security organization is that it serves as a tool for its smooth operation. Risks are not all bad as and taking some risk can even provide benefits that might outweigh what could be lost. Thus, one of the tasks of risk management is to assess such risk. Although risk assessment is distinct from risk management, the risk assessment should be able to identify threats, organizational hazards, the risk it self, and its possible effects, and to provide exposure assessment and risk characterization, to the organization.

Describe what benefits a properly performed risk analysis has for management.

            Properly informed risk analyses have quite a number of benefits for the management. Fray (2007) stated that properly performed risk analysis can show the current security position of the organization, it can highlights areas where greater security is needed, it can also help to assemble some of the facts needed for the development and justification and justification of cost-effective countermeasures and, lastly, it can help to serve to increase security awareness by assessing the strengths and weaknesses of security to all organization levels from management to operations.

The benefits of a properly performed risk analysis for the management, caters on the organization’s perception of strength in coping up with such risk and threats. That is, it enables the organization to be more concern on the security of its assets including financial investments and in preventing the occurrence of a volatile situation where risks and threats might disrupt the organization’s operation.

Since risk analysis is a process that can be considered to have defined start, work content, set goals, and a hoped-for-finish, a properly performed risk analysis could provide the organization appropriate and understandable information relevant to the organization’s goals or missions. The risk analysis is also the organization’s tool for aiding in risk based decisions and it could even reduce the level of risk t confronting the organization.

            Summarizing all the above, apparently, the most important benefit that a properly performed risk analysis has for the management is that it defines the effect that a risk have on a particular company. It provides the organization an important information on where, when, and how the risk is likely to be incurred. Risk analysis also demonstrate the extent of loss or liability if the risk “does not occur and how badly the company would be injured” (Broder 2006, p. 91). In view of all these information, the management can plan a program that could envelop the potential losses, exposures, and liabilities. Furthermore, the company will now have some options to what to do with risks; first, avoid it eliminate, or reduced to manageable level. Second, either to assume the risk or retained, and third, transfer the risk to the third party.

            Evidently, risk analysis is beneficial to the management and it helps the organization to achieve its goals and missions.

References

Broder, J. F. (2006) alysis and the Security Survey USA: Butterworth-Heinemann

Fray, J. (2007) Encyclopedia of Security Management USA: Butterworth-Heinemann

Horton, M. & Mugge, C. (2003) Network Security Portable Reference USA: McGraw-Hill

Kemshall, H. (2003) Understanding Risk Management in Criminal Justice Great Britain: McGraw-Hill International