This guide is written to advice on a way to managing risk, with respect to procedures to follow in conducting hazard analyses and treatment. To get more details about enterprise risk management you may check here https://www.riskmate.uk/project-risk-assessment.
Background of my Organization
I will focus my attention on the management of risks for my business generally. My organization is involved in the trading of steel products, mainly for building purposes, in addition to the purchases and sales of agricultural products like beans, maize, and rice. With respect to these products, letters of credit (LCs) have to be initiated frequently for these products to be sold abroad.
Purpose of Risk Management
Business risk relates to exposure to particular events which will have a negative influence on the strategies and aims of the company. Hence business risk is because of two factors: the likelihood of an event happening in addition to the seriousness of these consequences.
1. Strategic risk, such as poor marketing plan and inadequate acquisition strategy, because of poor planning (Bowden et. al, 2001). Inadequate acquisition and marketing of different grades of steel and agricultural products can show the downfall of the organization.
2. Financial risk, such as lack of credit evaluation and inadequate receivables and inventory management, because of poor financial control. A bad credit rating of potential trade and other debtors in addition to low debtors' turnover may be a bad reflection of the provider's strategy and objectives.
3. Operational risk, such as bad practices and regular activities, because of poor individual activities. Non-conformity into the business's safe practices or even deliberate activities by workers can make potential operational and financial losses to the company.