Risk management is an approach used to manage uncertainty, and this is done through risk assessment, development of strategies, and the mitigation of the risks using managerial resources. The strategies that can be used include the transferring of the risk to another party in that the project planner can use another person or organization to take the risk on its behalf, it can be through avoiding the risk in that if an organization has to undertake a project that will lead to risks then it is better not to take it, it can also be through reducing the adverse effects of the risk whereby the planner can use other procedures so that the harmful effects of the risk can be diminished, and lastly, it can be through accepting some or all the consequences of that particular risk and thus can be through ensuring that one will be ready to face any of these risks and be prepared to run the project regardless of that risks.
In risk management, then some steps can be followed. They include the establishment of the context, which involves the identification of risk in a selected domain of interest, there is the need to plan, there is the need to map out, and this affects the social scope; identity, and scope of the users and the basis in which the risk is evaluated, there is need of the concerned to identify the framework, need to develop an analysis and the mitigation of the risks which is done using available technology and organizational resources. (Elizabeth, 1999)
After the establishment of the context then one needs to identify the potential risks, and these risks are about the events that cause problems, and therefore one has to have the source analysis in which the risk sources are either internal or external, for example, the employees of the organization. Then there is the problem analysis, where the problem is related to identifying threats. For example, there is the threat of losing money in the organization.
The methods that can be used to identify the risk can depend on culture, industry practice, and compliance, and therefore, depending on the type of method used then one will be able to have the specific method to use in identifying the risk, and there is the objectives-based risk identification whereby the organization has teams that have objectives and therefore any event that can prevent one from achieving an objective can be seen as a risk.
There is scenario-based risk identification. This is the alternative to achieve an objective, and any alternative that can lead to effects on the objective is a risk. There is the taxonomy-based risk identification whereby they are the questions that require answers and these answers are liable to risk. There is the common-risk checking whereby the risks can be checked through the application of a particular situation. (Elizabeth, 1999)
After the identification of risk, then what follows is the assessment of risk in which one has to know the amount of the risk so that he or she can know how to go about implementing it. Therefore, one has to see the rate of occurrence and the impact of that event that leads to risk. Consequently, one has to create a risk management plan so that they can know how to deal with this risk when it occurs, and this will lead to a reduction of losses that result from risks. Therefore, Baderman Island has to ensure that these processes have been followed, and this will reduce the risks that are likely to have an effect on the business.
Improvement of the process
In improving this process then the mission of Baderman Island is to ensure that the customer is provided excellent services that will exceed both the expectations and the experiences and the services are in terms of providing well-trained staff, equipped with facilities and other services that are required by the customer. For the employees, they ensure that they inspire the employees’ pride and commitment through providing things like job security, having performance recognition, and also have open communication, and these will encourage the employees to produce more quality.
The shareholders then will foster the pride of ownership and, therefore, one will know that he or she is provided with the best services and be willing to invest more so that they make high profits. In the community, they will become partners with the business associates so that they can enhance the stability and the long-term growth of their business, and they have the leadership involvement in such a community, and through these practices, then the community will be able to run the business excellently.
As for the strategic objectives for Baderman Island, it plans to have additional resort development, improvement of transportations services, and also have access to grounds that will enhance the environmental focus in enabling the development and in building on the season business model with both the local and regional shareholders. (Elizabeth, 1999)
There is the total quality management that is the management method that relies on the cooperation of all the members of the organization, and through this cooperation, then the functioning of this organization will be improved, as they will be willing to do all the best for such an organization. Therefore, through cooperation, the organization will have high production that will lead to high profits as the workers do all the best without expecting to be supervised and, therefore, most of the time is spent in production.
The strategies that can be applied to manage the risk will be important because they will assist the business in achieving the best in production, and this can be through ensuring that the risks that can be expected in the business have been done in a way with or one can take any strategy that will be of importance for such a business to survive.
Elizabeth, M (1999). Strategic quality management for a business to have good performance. Readers’ publishers.