Risk Management Principles and Applications Using ISO 31000 Standards MGT4025

Question 1

Risk management is a procedure that has specific strategies and processes that help in helping the organization achieve its intended purpose while also identifying risk and promoting mitigation strategies. Please come management standards is an effective way that helps in the management process before it is implemented. Risk management is necessary for the identification and treatment of risks (Chapman, 2017). It helps in maximizing the sustainable value of all the activities within the organization. It also helps in marshalling up the understanding of the potential upside and downside of the factors that are likely to affect the organization. One of the examples of risk management standards is ISO 31000:2009 which is used as a standard of measure both in New Zealand and Australia.

Question 2

ISO 31000:2009 is a generic guideline that offers the principles of managing risks. In most cases, it is usually applied in public and private community enterprises. It is not specified for any industrial sector. One of the principles that is applied for AS/NZS ISO 31000:2009 is that it is based on risk management to establish and sustain the value. It means the business must be tied to the objectives while focusing on the business value. The second principle is risk management remaining an integral part of all organization processes. This is followed by the third principle which understands that risk management is part of the decision-making process (Finne, 2017). The fourth principle is that the risk management process is supposed to explicitly address uncertainty. Principle number 5 is that risk management is considered systematic structured and timely. Principle number 6 talks about risk management considered on the basis that it is the best available information. Principle number 7 is at risk management is supposed to be tailored while principle number 8 is that risk management is taking human and cultural factors into account. Principle number 9 argues that risk management is a transparent and inclusive process while principle number 10 reiterates that risk management is dynamic iterative and responsive to change. The last principle is that risk management is supposed to facilitate continuing improvement within organizations.

Question 3

The main purpose of risk management within the workplace is that the policies help in coming up with standards that help the organization in analyzing and implementing strategies of risk control. The procedures help organizations to operate their functions while analyzing, identifying, evaluating and treating each risk according to its level of occurrence (Norrman, 2016).

Question 4

1.Identification of the risk
2.Analyzing the severity of the risk
3.Evaluation of the risk
4.Treating the risk by implementing strategies
5.Monitoring and reviewing of the risk

Question 5

• Identification of risk in human resources through interviewing techniques is one of the best ways to resolve conflict and performance as this may lead to project delay.
• Awaiting expansion of risk historical records can be done through using of artificial intelligence in forecasting the future demand and supply of the products (Shi, 2020).
• Expert judgment can also be used in making future decisions and avoiding the risk of loss.

Question 6

Dynamic risk register is kept in place so that they project manager can be up to date on all the important risks that their project is facing. The risk register also helps in understanding how the project management stream is likely to deal with them (Waller, 2020). The risk register also tabulates the risks according to their order of agency they are analysis processes and risk treatments.

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