...When identifying risks to the organisation and assigning resources, it is imperative that organisation understand the consequence of the risk eventuating so that risk treatment can be prioritised. Such prioritisation can only occur when risks are rated and prioritised based on an international standard that utilises consequence for determining risk ratings. While the crime triangle allows for the rating of risk, it does not take consequence into consideration as ISO31000 does. Where the organisation is able to understand how they will be adversely affected by negative risks, there will be a higher level of co-operation to assign resources. Where the consequence is only portrayed in a technical manner and not in line with the organisations strategy and business objective, there will more reluctance to support risk treatment. Organisations must utilise an Enterprise Risk Model that allows for scalability and organisational wide understanding and co-operation. Such a model should be developed enterprise wide and further more adapted for the identification of different types of risks, such as security risks. ISO31000 better suits such a requirement in comparison to the crime triangle that specifics risks as crime. It is imperative to understand that risks are not always perceived as crimes and utilise a model that allows for this. Risks are often guided by uncertainty and it is imperative for organisation to utilise as much information relating to the risk as possible as too...
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...and against and then draw conclusion.(The Learning Centre 2012). ORGANISATION This is an institution, an association consisting of a group of people having common aim and objective, working in a common platform. Profit making organization: The organizations which are working for their benefit as well as for the benefit of the common people are called as the Profit Making Organization, for example cooperatives. A profit organization exists primarily to generate a profit, that is, to take in more money than it spends. The owners can decide to keep all the profit themselves, or they can spend some or all of it on the business itself. Or, they may decide to share some of it with employees through the use of various types of compensation plans, e.g., employee profit sharing. Non profit making organisation: A non profit organization exists to provide a particular service to the community. The word "non profit" refers to a type of business one which is organized under rules that forbid the distribution of profits to owners. "Profit" in this context is a relatively technical accounting term, related to but not identical with the notion of a surplus of revenues over expenditures. The main aim of these organisations is helping the community and is concerned with money only as much as necessary to keep the organisation operating. TREASURY MANAGEMENT. Treasury management (or treasury operations) includes management of an enterprise's holdings, with the ultimate goal of maximizing...
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...documented means of managing risk and current practices. While companies had been conventionally addressing issues of foreign exchange, taxation, interest rate and prices, the widespread adaptation of internet in sourcing customers and online facilities are creating a new wave of corporate risks. Do current corporate risk practices prove wrong the established academic theories? Large Corporation such as Lehman Brothers, Northern Rock, Royal Bank of Scotland and many organisations had fallen to receivership all across the world showing the evident of the necessity of risk management strategy and a business continuity strategy. Some multi national organisations had also been exposed to risks such as Sony with unidentified battery issue before release of product in 2006, Dell supply chain problem in 2007, fiasco caused by software failure in 2008 to British Airways etc. This is because they had failed to take into account risks that could be created by people, resources and occurrence that is outside the normal business practises. Risk management is now an essential element of organisation’s strategy by putting in place a process to handle risk in priority of the likelihood of occurrence. The managerial decisions necessary for smooth running of organisation cannot be taken without element of risk. As a cornerstone of business practice the question management need to be aware of is their approach to risk and how it can be managed. ISO 3000 define risk management as “the fundamental process...
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...A Risk Management Standard Published by AIRMIC, ALARM, IRM: 2002 Introduction This Risk Management Standard is the result of work by a team drawn from the major risk management organisations in the UK - The Institute of Risk Management (IRM),The Association of Insurance and Risk Managers (AIRMIC) and ALARM The National Forum for Risk Management in the Public Sector. In addition, the team sought the views and opinions of a wide range of other professional bodies with interests in risk management, during an extensive period of consultation. Risk management is a rapidly developing discipline and there are many and varied views and descriptions of what risk management involves, how it should be conducted and what it is for. Some form of standard is needed to ensure that there is an agreed: should be viewed not just in the context of the activity itself but in relation to the many and varied stakeholders who can be affected. There are many ways of achieving the objectives of risk management and it would be impossible to try to set them all out in a single document.Therefore it was never intended to produce a prescriptive standard which would have led to a box ticking approach nor to establish a certifiable process. By meeting the various component parts of this standard, albeit in different ways, organisations will be in a position to report that they are in compliance.The standard represents best practice against which organisations can measure themselves. The standard has...
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...large multinational and small to medium, should take the threats and risks they could face seriously. Security Risk Management (SRM), Business Continuity Management (BCM) and Emergency Planning (EP) assist in achieving this by putting in place effective risk identification and management measures. Effective management of risk can make the difference between success or failure of business operations during and after difficult events. Threats can include man made threats, such as terrorist attacks, or naturally occurring threats such as earthquakes. Effective risk identification and management is essential to any business, especially with the current uncertainty in the world’s economic climate. In order for businesses to survive, during times of increased strain on business operations, it is essential that an alignment between security and business operations can be achieved. This can be achieved by the security department not only widening the remit to cover more risks, but changing how the department works and relates to the rest of the business; including shared responsibility for things such as Corporate Governance, Information Assurance, Business Continuity, Reputation Management and Crisis Management. The problem is security departments now have more responsibilities in an increasingly complex and fast moving world. Security Risk management is no longer an activity just for companies who work in high-risk areas or with exposure to significant security threats. Therefore,...
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...Importance of Managing Risk Introduction A variety of academics have provided numerous definitions of risk, with some being centred around a specific business environment and others being a more generic definition of risk. A comprehensive risk definition that is tailored around the business environment can be defined as an event that will likely lead to substantial losses for an organisation, which could also be made more dangerous by the likelihood of the risk event occurring (Harland, et al., 2003). Furthermore, The English Oxford Dictionary defines risk as "A situation involving exposure to danger" or "The possibility that something unpleasant or unwelcome will happen". (Oxford Dictionary, 2015) Kaplan and Garrick (1981, p. 12) provide a simple equation for risk, which is "risk = uncertainty + damage". They believe that it is irrelevant as to what context risk exists in, and that the same equation can always be used to identify and manage risk. However, risk can still be categorised differently depending on what facet of the organisation it is affecting. For example, supply chain risk can be defined as ""the variation in the distribution of possible supply chain outcomes, their likelihood, and their subjective values" (March & Shapira, 1987, p. 1404). This is quite different to other, more generalised definitions of risk. Risk Management Before a risk management strategy can be decided upon, the risk event must first be identified. An organisation should conduct three...
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...Community Sector Management BSBRSK501A Manage Risk Learning Resource BSBRSK501A Manage risk March 2012 Author_ Drew Dwyer Frontline care Solutions Page 1 of 135 Enquiries Enquires about this and other publications can be made to: Drew Dwyer Contact our office: Frontline Care Solutions P.O. Box 1088 Coolum Beach QLD 4573 Phone: (07) 5351 1188 Email: admin@frontlinecaresolutions.com Website: www.frontlinecaresolutions.com Copyright © This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission of the author Drew Dwyer – Frontline Care Solutions. CHCORG605A Manage Human Resources in a Community Sector Organisation Produced by Frontline Care Solutions © Drew Dwyer December 2011 Issue 01 – V1 12/12/2011 Page 2 of 166 Table of Contents How to study this unit .............................................................................................................................. 4 Element 1: Establish risk context ............................................................................................................ 7 Risk management context....................................................................................................................... 7 Risk management policy and plan ........................................................................................................ 12 Risk management, Legal compliance...
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...SAMPLE RISK MANAGEMENT PLAN INTRODUCTION The following guidelines have been developed to assist employees to meet the intent and to gain the benefits of our organisations Risk Management Policy. The overall aim of the risk management program is to ensure that our organisation is able to meet its strategic, operational and compliance goals and objectives in an environment of possible risks. We recognise that our organisation will have to incur risks in the pursuit of its business and corporate objectives. The purpose of these guidelines is to provide a consistent framework which will assist all employees to recognise and manage risks inherent in the conduct of their activities We encourage all employees to act in ways which controls and treat risks in order to minimise potential injures, damage to assets and setbacks which will adversely affect our organisations pursuit of excellence and leadership. SCOPE These guidelines apply to all departments within our organisation and its controlled entities. They apply to all Departments, Divisions, Centres, controlled entities and joint ventures. RESPONSIBILBITIES As per the Risk Management Policy, risk management is a whole-of-organisation activity. All members of our organisation have a role to play; in particular, staff should take an active role in the identification of potential business and operational risks facing their department or Division, programs, research, business or work unit and take steps to successfully...
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...Change Management The optimum solution for adopting new organisational practice in terms of organisational labour, raw materials and capital is organisational change (church et al., 1994). There is no universal prescriptive model for change management which is efficient for the organisation (Dunphy and Stace ,1993). To identify those critical variables how organisation can run successfully a wide range of investigation is undertaken (Kanter et al., 1992). The success of implementing change is depend upon the manager who reconfigure an organisation’s roles, responsibilities, structures , outputs, processes, systems, technology or other resources( Buchanan and Badham , 1999). In order to bring change in organisation first we have to increase an urgency by motivating people, making real and relevant objectives. Then we have to find the right people with the right skills to execute change. Communication is needed with each and every one and technological help should be taken to communicate in a faster way. To drive service and efficiency a vision should be established among the team members by making chunk of the entire project. There might be new obstacles to change but they should be removed, new recruitment, selection of new team leader and change of culture is also needed. According to the lewin mode(1940) there is a three stage of process need to follow which are unfreeze, change and refreeze. People in the organisation need a time to adjust in the change and also need...
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...Introduction . Security management and systems have often been perceived as a non –productive expensive capital overhead by the stakeholders of companies and a hindrance to employees. The purpose of this assignment is to, Identify what is seen as the main purpose of security management and discuss what is meant by the statement ‘security measures must be commensurate with the threat’. Discussion. Judgements on risk are made by almost all of us on a daily basis, this may be something as simple as crossing the road, subconsciously we adopt a thought process, how fast is the traffic moving? Is it wet? What is the distance needed to travel to safety? Once this thought process has been followed if there remains an element of doubt we then start to mitigate, the type of shoes we are wearing for example, trainers could get us from A to B quicker than if we were donning leather shoes, or if the vehicle in question was a bus pulling away from a stop we would have time to cross safely, on understanding this process we can begin to appreciate the fundamental building blocks of which security management is based. Security management’s primary concern is with the protection of a company or organisational assets. An essential part of security management is the preparation of contingency plans in a response to incidents that could occur and additional control measures implemented as a direct response to any increase in the level of threat, to explain further, security management is required to...
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...September 29, 2004 The Role of Internal Auditing in Enterprise-wide Risk Management In conjunction with the newly released Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management - Integrated Framework, The Institute of Internal Auditors (IIA), in coordination with its IIAUK and Ireland affiliate, has issued a position paper on The Role of Internal Audit in Enterprise-wide Risk Management. The paper's purpose is to assist chief audit executives (CAEs) in responding to enterprise risk management (ERM) issues in their organizations. The paper suggests ways for internal auditors to maintain the objectivity and independence required by The IIA's International Standards for the Professional Practice of Internal Auditing (Standards) when providing assurance and consulting services. Internal auditing's core role with regard to ERM is to provide objective assurance to the board on the effectiveness of an organization's ERM activities to help ensure key business risks are being managed appropriately and that the system of internal control is operating effectively Recommended Roles The main factors CAEs should take into account when determining internal auditing's role are whether the activity raises any threats to the internal auditors' independence and objectivity, and whether it is likely to improve the organization's risk management, control, and governance processes. The IIA's position paper indicates which roles internal auditing should...
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...Explain how risk management processes should reflect the requirements of the AS/NZS 4360:2004 Risk Management Standard. The most commonly used standard used in the different process for management of risk is the AS/NZS 4360:2004 Risk Management (the Australian standards). The AS/NZS 4360 has provided us a generic framework for managing and controlling the risk. This has been brought into existence to minimize the losses of the organisation and to maximization the gains. Under AS /NZS 4360 there have been certain steps been defined and method has been specified to be followed The 1st step- establishing of context This involves question like *what are the safety requirements? *what is the safety performance of a particular place? *what are the safety regulations? The 2nd step- Identification of the risk and hazards having potential In this step firstly the hazards are analysed and then the risk is managed systematically. Systematically management of risk under AS/NZS 4360 • The standards are helpful and useful in eliminating the risk before hand . • With poor safety in the industries, the hazards caused by this will require the detailed process for the management of risk. 3RD STEP Calculating, evaluating and controlling the probability of the risks. 4th step Monitoring and communicating Re-examine against wants of Section 20 of the OHS Act. Collaboration, discussion with the client and people involved in the design project Referring to examples, what are some...
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...Risk based internal auditing Background Over the last few years, the need to manage risks has become recognised as an essential part of good corporate governance practice. This has put organisations under increasing pressure to identify all the business risks they face and to explain how they manage them. In fact, the activities involved in managing risks have been recognised as playing a central and essential role in maintaining a sound system of internal control. While the responsibility for identifying and managing risks belongs to management, one of the key roles of internal audit is to provide assurance that those risks have been properly managed. We believe that a professional internal audit activity can best achieve its mission as a cornerstone of governance by positioning its work in the context of the organisation's own risk management framework. ________________________________________ What is risk based auditing? Our definition IIA defines risk based internal auditing (RBIA) as a methodology that links internal auditing to an organisation's overall risk management framework. RBIA allows internal audit to provide assurance to the board that risk management processes are managing risks effectively, in relation to the risk appetite. Is the organisation ready? Every organisation is different, with a different attitude to risk, different structure, different processes and different language. Experienced internal auditors need to adapt these ideas to the structures...
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...Types of Supply Chain Risk 09.05.2016, 15:22 Print REFERENCE THIS 3,061 Words 7 Pages CHAPTERS LINE SPACING Types of Supply Chain Risk Types of Supply Chain Risk Introduction There have been many different definitions of supply chain risk, but it can be broadly defined as "the variation in the distribution of possible supply chain outcomes, their likelihood, and their subjective values" (March & Shapira, 1987, p. 1404). However, this definition has since been expanded upon to account for all the different departments and functions that operate within a supply chain. This leads to an overall definition of supply chain risk as "any risks for the information, material and product flows from original supplier to the delivery of the final product for the end user" (Juttner, et al., 2003, p. 202). Simply put, supply chain risk refers to the probability of a risk event occurring the supply line and when the product goes on sale. Furthermore, risk sources are the predominant causes of risk events, which are "the environmental, organisational or supply-chain variables which cannot be predicted with certainty and which impact on the supply chain outcome variables" (Juttner, et al., 2003). Identifying Supply Chain Risk There are a variety different approaches that a company can take in order to identify risk in their supply chain. Steele and Court (1996) proposed a conceptual framework for identifying the potential risk in an organisations supply chain. This...
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...Introduction Risk management has become a significant part in an organisation. There are always uncertainties in the process of achieving the goals of an organisation and uncertainties will lead to risks. According to insurance industry professionals, “risk is a condition where there is possibility of an adverse deviation from a desired outcome that is expected or hoped for.” Chapman (2011) stated, “Companies that treat risk management as merely compliance issue expose themselves to nursing a damaged balance sheet.” Business now operate in an entirely different environment compared with fifty years ago. There is an increasing number of firms seeking international growth by going global as an importer or exporter. When engaging in the...
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