MANAGING RISK AND LEADING CHANGE

Managing Risk and Leading Change

Managing Risk and Leading Change

Introduction

The main purpose of this paper is to make an analysis on the issue that the main focus of a leader is to manage risk and leading change. The main responsibilities of a leader are to manage risk effectively, and bring positive changes in the company.

The main aim of the leader in an organisation is to give the clear direction of the company, and to give protection to its ideas and rules in order to make the creation of goals and aims of the organisation. The leaders have the responsibility to conduct groups and make people work in a group and then manage the group effectively through formal leadership. It is very necessary for a leader that if he wants to become an exemplary leader, he should go through formal leadership studies and take leadership trainings. This means that it is very necessary for a leader that he should take the proper training in order to become an exemplary leader (Balogun, 2008). As he takes the necessary training and groom himself as a leader, the next step, which a leader has to follow is to pick the right members that can create a group, and work in accordance with the company's goals and objectives (Osborne, 2005). There are many functions of a leader, but the main functions of a leader are to manage risk and the change in the company.

Discussion

Leadership is the ability that a person has, and through this ability he influences many people. Leadership is the activity through which the leader can guide the people and group to perform the tasks effectively without any power and authority. The activity of leadership helps the leaders to give the proper guidance to a human being and their groups (McLean, 2005). A leader helps in bringing changes and innovations in the company, and manages the risks associated by the companies.

Role of Leader as Risk Manager

The risk is a fact external to the economic subject, which may happen or not on any given time. So the risk may be seen as an element of uncertainty that may affect the business. It may be motivated by internal or external causes to the company. There is an atmosphere of uncertainty when there is no clear knowledge about the safe and outcome or future consequences of any action, situation or asset or liability, which may result in risk. It happens when one appreciates the contingency perspective, can generate losses or the proximity of damage (Kemshall, 2002). The uncertainty is quantified using estimates made ??to reduce future risks, and although its estimate is difficult does not justify the lack of information.

It is the responsibility of a leader to understand these risks and have the proper knowledge about all the risks which a company can face. A leader should anticipate the risks which a company can face as a result of different problems. A leader after understanding the risks should take all the necessary ...