Good Example Of Environmental Studies Essay

Risk Identification and Analysis (RIA) and effective Decision-making

Risk Identification and Analysis (RIA) and effective Decision-making
Risk is an inherent part of the profit and non-profit organizations due to the dynamic nature of the market and economic conditions within which the institutions operate. In the management of operations, technical, and human resources, organizations develop certain cultures. The cultures influence the manner in which the organizations relate within and outside the organizations (Fong, 2006, p. 2). There are also internal structures that define certain elements such as hierarchy, chain of command, and flow of authority. As such, there is a traditional way of doing things in the organization.
Cultures and structures of an organization also have an effect on the process of decision-making. The flow of authority implies that certain decisions are beyond the authority and jurisdiction of some employees. For this reason, the organization has a potential of exposure to high levels of risk because the officers may not be able to solve a problem that requires the permission of a higher-ranking individual. After the allocation of duties, it is important for organizations to delegate specific responsibilities to employees to act in the capacity of those above them when they not present (Rejda, 2008, p. 3).

References

Fong, H. G. (2006). The world of risk management. Hackensack, NJ: World Scientific Pub.
Hopkin, P. (2010). Fundamentals of risk management: Understanding, evaluating, and implementing effective risk management. London: Kogan Page.
Rejda, G. E. (2008). Principles of risk management and insurance. Boston: Pearson/Addison Wesley.