Identifying and Managing Risk

It basically involves the practices of using different processes, techniques, and tools to be able to manage those risks. It aims at identifying what exactly could be wrong, the risks that ought to be dealt with and then implementing the appropriate strategies to deal with those risks. Many scholars have researched and recommended different techniques towards risk management which could highly be applied in different business contexts. This article provides a comparison of risk management techniques proposed by Dr. Kallman James (2008) in the article “Risk Management Solutions,” and the techniques proposed by Kaplan & Mikes (2012) in the article “Managing risks: A new framework. In this case, the risk map could greatly be helpful in analyzing the characteristics of the risks before making a decision on whether to spend the scarce resources on it or not.

Lastly, Kallman (2008) recommends that organizations initiate safety projects to be able to save their lives and manage any possible risks. On a different perspective, Kaplan & Mikes (2012) in the article “Managing risks: A new framework,” recommend that risks can be managed either through rule-based risk management or a dialogue to alternative solutions. They argue that many organizations tend to treat risk management as a consistency issue that can be managed by just building up an arrangement of rules and ensuring that every one of the workers within the organization follows these rules. However, this is not always the case and that’s why Kaplan & Mikes (2012) recommends alternative solutions. They argue about the rule-based-control model which is used to manage preventive financial risks.

What’s more, they argue about the compliance-based approach which helps organizations understand the risks they can accept and the ones they can avoid. This is a great technique when it comes to risk management. Considering the solutions proposed in both articles, I agree more with the arguments by Kallman (2008) as they seem more realistic and they can even be applied by start-up companies which have no much knowledge in regards to risk management. Kallman (2008) recommends that organizations ought to first analyze the risk event in terms of its probability, variance, impact and also timing to determine if it's worth spending the company’s scarce resources or not. com/magazine/1G1-176776901/risk-management-solutions Kaplan R. & Mikes A. Managing Risks: A New Framework.