Risk Management: A Step towards Sustainable Development
Hardeep Singh, Bikram Pal Singh · 2011
Risk is the chance of personal injury, or property damage or loss, determined by combining the results of individual evaluations of specific elements that contribute to majority of risk concerns. Risk generally is a function of severity (an event‟s potential consequences in terms of degree of damage, injury or impact on a mission) and probability (the likelihood of an individual event will occur). Risk may directly affect the productivity, profitability, service, quality, reputation, public image, brand value and earnings of an organization. Even then to survive in this competitive world, risk is essential to progress. The opportunity to succeed also carries the opportunity to fail. It is necessary to learn to balance the possible negative consequences of risk with the potential benefits of its associated opportunity. Risk may also be defined as the possibility to suffer damage or loss. Therefore to go ahead in life and achieve highest success, risk management standards are required for the proper identification and assessment of such uncertainties or damage or loss or unfortunate events, so as to maximize realization of objectives. In real sense, risk management is a decision making tool, people in an organization use to increase effectiveness by anticipating hazards and reducing the potential of loss, thereby increasing the probability of a successful mission. Effective risk management requires establishing and following a rigorous process. In risk management practices, a prioritization process is followed whereby risks with the greatest loss and the greatest probability of occurring are handled in descending order. Risk management should be transparent, systematic, structured and dynamic based on the best available information. To conduct this study, exploratory qualitative approach has to be used. Theoretical frame work has to be developed from the literature, data to be collected from the multiple sources of evidence in addition to books, news papers, journals, websites and other professional magazines. A series of interviews, have to be conducted with risk management experts of organizations. A survey has to be developed, based on refined questionnaire with risk management experts of company. In this research paper our main focus is to highlight how risk management principles and techniques contribute towards the sustainable development.