Risk Management What Is Risk?" Please Respond

Risk Management What is Risk?" Please respond to the following: Risk concerns both positive and negative aspects of an event. Analyze why it is important to consider both perspectives when addressing risk for an organization. Include an example to support your response. It is important to consider the positive AND negative sides of any given possible outcome because one cannot properly plan for what is and what is not necessary given a certain event for which there is a risk.

For example, a snowstorm might make the roads dangerous and thus make it hard for a brick and mortar store to function but the likelihood of customers driving in that same weather is also pretty low, so the overall loss is not as high as it could be if business was lost. However, Amazon (an online store) would not get that benefit…so that point of analysis is important to determine risks and how/when to respond. However, the script would flip if there was a website crash.

Wal-Mart would be fine (but not great ) if their website went down but Amazon would be in an immediately world of hurt in the same scenario. Evaluate how threats and opportunities can be used to an organization's advantage when developing the risk management plan. Argue the value of having a risk strategy despite the cost associated with it. Include an example to support your response.

Many people in a business environment actively have a problem with business activities that do not have a clear value to the business and/or are clearly a net drain to the bottom line at least most of the time. Having a risk plan even with the drain to the bottom line is not nearly as glaring when a business is ready when the risky event actually happens.

For example, a risk management strategy that discusses how to handle a fire or smoke event at a business may seem like a giant waste of time and money but it will quite likely save money (if not lives) when it happens. Disaster preparation would also protect data and allow for quicker and more expedient recovery and that would save a TON of money and/or aggravation. The planning costs time and money but it's invaluable if a firm is ready when disaster strikes.

"Planning for Risk" Please respond to the following: There are three schools of thought regarding risk. The first considers the positive and negative aspects of risk, but sees them as separate. The second group believes that there are benefits from treating threats and opportunities together, while the third school does not label uncertainties, but addresses uncertainty as part of "doing the job." Compare and contrast the advantages and disadvantages of each approach. Respond to another student's post (ground students will discuss their positions).

The downside to the first approach is that there is a separation between the positive and negative aspects and that can be problematic because it can cause a disconnect between the good and bad things inherent to a single event. The upside is that here is a clear list of both the good and bad and allows for distinct analysis of all of the above…just not a combined approach that deals with it concurrently. The upsides/downsides of the second approach are inverted.

Treating them together is more "big picture" but the size and scope of the individual upsides or downsides are perhaps not as minimized or maximized as they should be. The upside of the third approach is that it notes honestly that uncertainty is there but the clear downside is that they are not labeled and thus are not accounted for and prepared for properly. Choose a project with risks and select one approach from Part 1 of this discussion for the project you chose.

Provide a rationale for your selection and determine how this approach helps the project to be successful. Be sure to identify the project you have selected. A project that could be focused on is the fixing of the HealthCare.gov website. The right approach would be the second, whereby the good and bad are both looked at. While the "bad" list is obviously much longer than the "good".