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Furthermore, weather and navigational equipment should be state of the art and also checked regularly for possible malfunctions. These risks are unknown, but can become known on a daily basis by means of monitoring and careful investigation and planning.
Risks that are not known are the most challenging of a company's risk management program. Such risks might occur by means of unforeseen accidents or oversight as a result of noncompliance with existing risk regulations. In addition to unforeseen natural occurrences such as earthquakes, for example, the human factor also plays a significant role in unknown risk factors.
The employer of a company may for example be unaware of an employee's increasing mental instability. The looming breakdown may be the result of a number of personal factors that the employers has not been informed about. Such instability may also be difficult to monitor, particularly in a company with a large number of...
Concomitantly, significant financial implications are possible for the company, including the possibility of law suits or a loss of worker hours as a result.
In any company, the human factor poses the greatest possibility of the unknown. To proactively handle such matters, a manager might wish to monitor his workforce on a regular basis for factors such as excessive work or personal pressure. Employees themselves can also be charged with the responsibility of monitoring the stress factor in each division of the company. The most important factor in mitigating the unknown is to estimate the possibilities of failure or risk, and become familiar with the unknown. Furthermore, an important factor is that the manager be aware that not all unknowns can be covered, but that events of disaster and loss can be learned from. Unknown risks can then be handled from both the retrospective position and from the perspective of future potentiality.
When the risk is significant, this should be quantified against the risk of not entering the specific country in terms of expansion. When the risk is acceptable, stringent measures, including organizational arrangements, engineering control, and research and development, need to be taken. Research and development are particularly important, as mitigation measures can then be implemented that are particularly targeted towards the measure of possible terrorist attack for the country
When new employees are appointed, for example, they should be observed thoroughly during the first months of work in order to assess their stability and stress levels. A reporting system could also be implemented, by which workers are encouraged to consult management regarding their own or a co-worker's stress levels and concomitant work performance. It is important to ensure that none of these measures be perceived as unfair. In terms
A lack of foresight and initial risk assessment therefore resulted in the losses suffered by the company. In the area of maintenance and risk assessment, a lack of regular spillage inspection resulted in financial, legal and environmental risks for an oil company. The oil rig was not inspected on a regular basis, which resulted in a lack of regular maintenance. Hence the damage to one of the oil containers was
While it may be seen as quite simple to put preventative measures in place to limit discrimination within a company, large companies especially may have difficulty in monitoring every case of discrimination in the company. There are however risk factors that can be taken into account when assessing discrimination issues. The amount of diversity in a company and its various divisions should for example be taken into account. It should
This was further detrimental to the morale of existing workers, as they began to resent the striking section of the workforce for their situation. The managing team then determined that a management of change assessment was necessary. The first step in this assessment was an assessment of the existing situations. Workers were beginning to suffer from extreme fatigue, resulting in outbursts of anger and potential fights. This created physical hazards
Another alternative for companies with uninsurable risks is mutualization. However, this category of insurance carries further risks that may not be suitable for all companies. The main problem is that mutual insurers require participants to be from a homogenous population, making this alternative unviable for a variety of clients. Some companies are however working on overcoming such problems to make mutualization less problematic for their investors. Some insurance companies now