Table of Contents
2.0 The role of risk management for the college.
3.0 Importance of measuring risk.
4.0 Types of risk facing the college and the impact the external environment has on these.
Types of risks facing the College.
Impact of external environment on the above risks.
5.0 Responsibility for management of risk sits within the college.
6.0 Potential strategies and objectives for management of risk within the college, highlighting the role of contingency planning and crisis management.
7.0 How effective risk management will support the college.
8.0 How effective risk management allows the maintenance of competitive advantage.
9.0 Relationship between risk management and financial management.
Organizations face challenges from both external and internal sources which make them uncertain whether or when they will achieve objectives. The impact this uncertainty has on an organization’s objectives is called risk (Bonabeau, 2007)
Risk management is an important issue in the way of business success because risk is the main reason for uncertainty in an organization. Organizations, therefore, significantly emphasize the identification of risks as well as management of them before impacting the business. The ability of an organization to manage the potential risks helps to work more confidently making the right decisions for the future potential business. The acquired knowledge of risks by organizations gives them different options on how to handle problems that might be faced in the future. As a result, understanding the terms risk and its management for an organization is very essential (Olson and Wu, 2007).
This report examines different issues regarding risks faced by organizations and their management. The report focuses on a particular sector of the organization, namely College in the UK for further study. Firstly, the report describes the role of risk management in college. Secondly, it explains the importance of measuring risks in terms of college. Thirdly, the report identifies the risks faced by the college and then illustrates how they mainly external risks impact the success of a college. Fourthly, the report discloses the key responsibilities of the management of risk in college. Fifthly, it focuses on college objectives, and the potential risks against them, the potential strategies including contingency planning. Finally, the report concentrates on how the identified risks could be turned into possible competitive advantages in the business of college.
2.0 The role of risk management for the college
According to Caltech (2013), the main goal of risk management is to identify, analyze, assess, and measure potential risks in an organization and then to determine the potential appropriate strategies to overcome the risks identified. Risk analysis accomplished for the college may cost financially, physically, and mentally but it is very significant for the college because it will identify aggressive risks, analyze risks, and then define effective strategies. The process of risk management will list risk likelihood, existing risks, and the possible outcome of these risks. It will also deal with the implementation of the identified risks through an effective plan immediately.
For the last few years, many rules and regulations come from the government have escalated the need for risk management in the College of UK. The college authority is responsible for identifying, analyzing, treating, monitoring, and reviewing risk for the college property as well as liability. The risks of College may include people, material assets, and mainly legalities that impact on people and materials. The college must protect every category of risk identifying the assets in need of being protected, determining how frequently the risk might happen, and assuming the impact or risk as pounds value.
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The roles of risk management in colleges in the UK are also to provide credible information to the college authority to allow them to prevent potentially risky decisions. In addition, risk management refers to ongoing performance, display existing risks, and highlight the areas where more concentration need.
As Caltech (2013) notes, although the roles of risk management are generally the same for many organizations, there are a few variances in Colleges. Risk management in College some high risks which focus more on the destroy of a student’s career than the property of the college. The key objectives of risk management in college are to identify threats and prevent college and students from any unexpected incidents. The role of risk management in College is to assess threats vulnerability as well as to comprehensive initiatives for risky tasks or risky decisions. The college should identify risks in political issues, economic terms, and government new policies including immigration rules and regulationss for the international students, tax and VAT policies, international student work permit policies. Although the college does the same as other organizations, it is difficult to take action, absorb and retain response, avoid and reduce risk, find out alternative ways of management, and transfer risks to others.
Risks management can include training and development for staff and authority of college to avoid risks. The government or law enforcement agents like HomeOffice are able to plan responses through risk management.
Moreover, the roles of risk management can be to provide quality education and attract more students’ particularly international students after discovering the problems faces and their sources. Risks management in College is similar in many ways but the key differences are pressure involved from HomeOffice and the costs in the risk…………..