Question

Explain the process to carry out risk management while implementing innovations in an organisation. Answer in 300 - 350 words

Answer 1

In any organization there are many types of risks that can affect the organization in a negative manner therefore it is the responsibility of the management of the organization to take full care of the various activities happening in the organization so that the organization can be saved from the negative impacts of such types of risks happening inside and outside the organization.The risk management process includes many steps and the steps must be followed in such a manner so that it can prove to be beneficial for the organization in all the situations.The steps are as follows:

Identification of risk: In this step the management of the organization has to make good interpretation of the various activities happening and the different types of risks to which the organization is being exposed to so that the necessary knowledge can be obtained about the different types of risks and the necessary actions can be taken to resolve such risks.In this step a very detailed study is being done so that the organization can achieve it's aims and objectives in a very easy and smooth manner.

Ranking the risks: In this step,the various types of risks are being ranked so that the actions can be taken for the risks accordingly.There are many risks and there is complete ranking of all the risks according to their magnitude.

Treatment of risks: In this,the necessary action is being implemented so that the organization can be made free from the negative impacts of the risks occurring.The risks are treated in such a manner so that there can be smooth fucntioning in the organization and the goals and objectives can be achieved in a very smooth and perfect manner.

Monitoring the risks: After all the important action being taken to minimize the negative impact of the risks then there is proper monitoring of the different risks so that the necessary knowledge can be obtained about the risks that they are minimised or not.Such monitoring can be helpful in proper implementation of various actions in a proper manner because monitoring helps in making changes if required to achieve the desired results in the organization.Thus monitoring plays a very important role in any organization because it helps in removing errors if any in the process.

Thus these are the main steps being required to carry out the risk management process in any organization if the organization plans to bring out any innovation or try to do some different type of activity in the organization.