1. Introduction
Each organisation has many different kinds of risks that can influence it in many ways. Organisational risks usually prevent organisations from achieving their core aims and underlying objectives and often result in financial or reputation losses (Edward and Bowen, 2005).
Identifying and addressing probable organisational risks could inform stakeholders about the hazards before time. The organisational risks can be divided into several kinds including strategic risks, operational risks, financial risks, compliance risks, reporting risks, and technological risks (ibid).
The purpose of this report is threefold. First to outline and critically reflect upon the general processes and mechanisms for the identification and assessment of risk in determining organisational risk by employing an appropriate risk assessment criteria and then translating these into a risk map and risk register. Secondly, to explain and evaluate three key risks i.e. funding, financial, and health and safety risks to NGOs with a special case of Homeless International which is a British NGO focusing on urban poverty issues including social housing and slums. Finally, in the third part of the report the author suggests appropriate risk response and risk treatment strategies for Homeless International to reduce the impact of potential risks to an acceptable level.
The Essay on The role of risk management
Abstract: This essay is mainly about the role of risk management in addressing any potential risk to the organisation that may cause a lot of losses. Management’s mission is to predict the risk before disaster strikes, which require to study all the information and the details provided by the risk management team. In addition, what are the mistakes that had been committed in some of the ...
2. general risk Management Process
A general risk management process to identify and assess organisational risks is illustrated in figure A1 in Appendix I.
2.1 Risk Identification
risk identification is a major and significant part of the risk management process which initiates with recognising and classifying numerous risks associated with the project/ campaign. Hillson (2009) asserts that all possible risks must be recognised before starting a new project or campaign. However, Webb (2003) believes that risk identification is an iterative process which starts after the formulation of risk management plan and continues during all the phases of risk management process. In case of Homeless International which is a British NGO focuses on urban poverty issues (including social housing and slums), the managers must recognise all possible risks in the early phases of the campaign. For this purpose, they can follow six fundamental steps recommended by Bartlett (2004) which include understanding the existence of uncertainty, preparing risk checklist, recognising emerging risks, mapping possible risks, risk categorisation scheme, and making summary sheet for risk categories. Table 1.1 presents five essential inputs/requirements prior to initiate the risk identification process. Also, the table shows a list of identification tools that can be used at the risk identification stage which will allow Homeless managers to prepare a risk register.
