IMPACT OF RISK ON AN ORGANIZATION

Impact of risk on an organization

Table of content

Introduction1

Impact of risk analysis on Wal- Mart; a difficult task2

Conclusion19

Reference21

Impact of risk on an organization

Introduction

Nobody wants to think about what could go wrong on a project, but did not see the risk management means that you have the chance of unnecessary failure of the project. Modern organizations are characterized by risk. And, although many organizations believe that proper risk management, it is not always done in such a way that shows repeated or consistently applied to support effective decision-making (Snook, 2000). Risk management framework is one of the most important factors in achieving this goal. There may be normal risks that are almost inevitable, for example, the risk that a team member is sick for part of the project. There may be some unlikely, but high-risk exposure, for example, the risk that the decision could lead to the destruction of this organization. Nobody will argue that risk management within the project, not a good idea. Risk management is an integral part of any program or project, and may significantly contribute to the successful implementation (Simon, 2009). Where it can and does go wrong, when there is excessive dependence on the risk aspects of the project, and they themselves start driving way the project is moving forward. Risk management is an integral part of project management, but will not be all and end all of it, as it sometimes becomes more risk-averse organizational cultures (Lerche, 2006). Risk is a concept that denotes a potential negative impact on the asset or some characteristic values, which may be some present process or future event. In everyday usage, risk is often used synonymously with the probability of certain loss. Risk is assessed in terms of impact and probability. Because the risk is directly related to the loss, it is important to be able to assess the risks in their business and their solutions. Needless to say, inattention to risks can definitely affect the bottom line of the company (Jennings, 2006).

Impact of risk analysis on Wal- Mart; a difficult task

Risk management is defined as a disciplined approach to addressing risks from all sources that threaten the strategic goals of the organization or provide opportunities for competitive advantage. Although clearly states that it is also possible, through the current practice of risk does not reflect this ideology. The result is that the leadership of risk management as the cost of intensive exercise, which does not increase revenue or profits in the long term. Human and organizational risk is characterized by multi-level complexity and dynamics of socio-technical system (Mattord, 2008). Thus, the modern theory defines human and organizational risks emerging from the lower level of interaction between the individual elements of the system.

Key issues of risk management, supply chain management and climate change has made its way to the top of the media and corporate programs at Wal-Mart. Wal-Mart is aware of the risk in the international arena may be a consequence of price ...