Sample Management Paper on Risk Management

Risk Management

The four views of risk present a broad spectrum of the definition and the understanding of this concept. However, I agree with Joel Spolsky’s view that there is no progress without risk. Notably, before making any decision, an individual or organization must always carry out extensive research to establish the number of benefits that can be derived from a given project. From this evaluation, both the positive and negative aspects will be identified. According to Zinn (2015) any investment with a high risk level gives high returns and hence the importance of considering risk-seeking for a better outcome.

Feelings about Risk

Although different scholars have presented various definitions of risk, I believe that this concept involves factors that can limit a person or a firm’s ability to reach out to its potential or to perform effectively. Considerably, by accepting risk one should take into account two factors including the probability of an unfavorable outcome and the consequences therein. In essence, different types of investors exist and they are differentiated with their ability to cope with risks. These investors include risk averse, risk neutral and risk-seeking entrepreneurs. In most cases, the risk takers have a higher probability of attaining favorable outcome than the neutral and averse.

Considering my current roles and the responsibilities as a manager, being risk averse present will enable the organization to avoid different challenges including liquidation. The modern market has over the last decade presented a high level of unpredictability and any decision made by the management not only affects the company internally but also affects other external stakeholders such as customers, suppliers, and the government. This concept of risk will limit the number of losses that the institution may suffer thus safeguarding its survival in the market.

 

References

Zinn, J. O. (2015). Towards a better understanding of risk-taking: key concepts, dimensions and perspectives.