Assignment: Risk And Reward
Focus on Risk assignment. These readings will provide you with examples of assessing the risks of solutions. Business risk is the potential of gaining or losing something. When deciding which solutions could yield greater results, it is best to analyze the potential risks. When a Risk Assessment is conducted, the goal is to identify what the potential risks could be if the solution is implemented. Analyzing risks help predict what could happen if the solution is implemented.
Good leaders need to analyze each solution to anticipate what could happen. Assumptions are made when analyzing risks, so it important to avoid false solutions. A false assumption is something that it does not appear to be. For example, just because we identify that there is a need for high-quality training, we cannot make the assumption that employees will be excited to attend the training. So how do you minimize false assumptions? In the article by Carol Stephenson, there are three considerations leaders should take when assessing risks.
1. Ask the right questions.
By asking the right questions, leaders learn more about what to anticipate. The key is to drill down and keep asking additional questions.
Is the assumption false?
• What are the potential results if implemented?
• What are the potential results is not implemented?
• Do the solutions align with the mission and values?
• How will change be perceived? Will it be accepted and who will implement? Will staff be flexible to adapt to the changes?
2. Consult with a variety of people with different perspectives, experiences, and knowledge to predict, assess and manage the risks. One characteristic of a good leader is to welcome different perspectives, opinions, and viewpoints.
• Create a task force and identify who would attend. Is the group diverse including individuals with different perspectives, experiences, gender, ethnic background, and age?
• What partners outside of the organization could be included to collaborate to provide new perspectives?
3. Focus on integrity, courage and compassion.
• How will the results impact the employees, stakeholders and/or the community?
• Does the projected outcome fit with the mission and values of the organization?
(Stephenson, 2010)
Now, it is think about your case study. When reflecting on business risks for the identified solutions, here are some things to consider:
• What changes of roles and responsibilities would be required with personnel changes?
• What is the succession plan?
• What new systems or skills will employees need to gain? What is the financial cost?
• What interdepartmental changes need to be made (manufacturing, sales, delivery, financial and IT)?
• Would communication barriers increase or decrease?
• How would the proposed solutions impact clients? Would it increase their engagement level?
• Would the changes impact the brand or reputation in the industry?
While these are not all-inclusive questions, they can provide guidance and clarity when developing the Risk Assessment. Risk analysis should be completed for each proposed solution. This information can assist a leader in making a final decision. Naturally, options that have a high potential loss and a high probability of failure are not the optimal decision unless the payoff is great and the loss can be absorbed if the action fails.
Complete a 3-4 page paper discussing the risks and rewards to your client as they relate to the management problem
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.