Identifying and Managing Risk Essay Example | Topics and Well Written Essays - 750 words

Identifying and Managing Risk - Essay Example This is because once risks are identified the right strategies and techniques are put in place to ensure that they do not have negative effects on the portfolio or project. By implication, it can be said that it is not right to try to deny the reality of the existence of risk. Rather, the existence of risks must be appreciated, identified and embraced. More importantly, the right techniques must be in place to managing risk. Kallman and Abdali, Mouath and Qusai have both come up with a number of risk management techniques which share some similarities and differences in terms of their implementation and usage. Reading through Kallman one finds three major risk management techniques that are highlighted by the writer. These are risk avoidance, risk tolerance, and risk acceptance. Writing on situations under which either of these may be deemed as appropriate for an organization, Kallman emphasized that â€Å"If a cost-benefit analysis shows the downside is just too large for the organizations risk tolerance then avoidance is a wise choice.† The author continued to advise that â€Å"If the situation falls within the organizations' risk appetite or tolerance, however, then acceptance is the appropriate choice.† From these two quotations, the technique of risk management is clearly outlined. It can be noted that Kallman advocates the use of systematic analysis of risk by weighing the impact of risk on the organization’s activities and programs. Once such weighing is done, it will be possible to determine the exact impact of the risk to the organization. By so doing, risks t hat can be contained without any significant negative impact can be allowed to remain so that the efforts to management can be sent on those risks that pose some levels of threat through risk tolerance.  

Summary Essay Example | Topics and Well Written Essays - 250 words - 69

Summary - Essay Example India has made well-publicized progress especially in technical education, and we also see that China has not held back.  These two countries have a breathtaking level and pace of investment. As clearly observed, China reforms led to the creation of 22 million new businesses employing 135 million people who would have remained peasants. This has greatly been facilitated through creation of Special Economic Zones where foreign companies which are willing to build modern factories hire cheap labor, and are exempted from taxes, leaving it to the government to build roads and other infrastructure needed (Faigley & Jack 394). The â€Å"big elephant phenomenon† has been mainly due to the removal of barriers to the flow of capital from abroad. This has led to the rise of very effective and internationally competitive softwares and IT, together with the influx of multinational corporations like Starbucks and MacDonald’s, which have several branches in these two countries, thus elevating the country from the crisis of 77% living on 2$ a day.   These two countries have embraced the fact that technology is only one dimension of international competitiveness, and that low labor cost is one more.  We are individualists in our personal ambitions but we either follow or fail as one people in our search for economic progress (Faigley & Jack