Essay about Risks And Risks Of Risk Management

1001 Words Oct 17th, 2016 5 Pages
Risk management primarily refers to the risk of life that an organization must account and conduct procedures for, implying that the risk is already present and not created by the organization’s decisions which grants a protective coating for the consequences of the risk to be hidden. Risks can be managed in one of three categories: preventable risks, strategy risks, and external risks; which are categorized based on the level of controllability an organization can take accountability for. Preventable risks are often internal risks of an organization that are can be controlled by monitoring operational processes. Strategy risks are significant risks that are voluntarily accepted by an organization in hope for a greater return and monitored by procedures that are set in place in case these risks materialize. External risks are events that rise from completely outside the company’s control, making these risks unpreventable and only manageable by identifying the risks before it’s too late. In the case of the United States space shuttle the Challenger, the launching of the shuttle was a strategic risk, meaning that the launch was dangerous but the expected return of information would exceed the risks taken. The risk taken was considered to be an acceptable risk; therefore the question of the ethics associated with the risk becomes unclear. When the taking of the risk itself is brought under question, the ethics associated with the risk takes on greater meaning.

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