Research Of Risk Management Definition

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Research carried out by Hilson and Murray-Webster(2005,2006a), risk management is currently still developing over the commencing years and has to reach a certain point in which it expressed in a straightforward manner. However, this is because there are various sectors of risk management and overlooking the key aspects is crucial or effective risk management which involves the risk attitude. This is a key element of risk management because it acts as a response for uncertainty, influence by the perception in which causes biasness in decision making and value of the risk management. Risk attitudes provides a spectrum which ranges of risk-seeking, risk-tolerant and the risk versions, however, it proceeds onto deeper understanding of risk which is consigned from the human brain and psychology which can broken down into various stages such as, attitudes, decisions, behaviors, and emotions that are carried out towards risk which are portrayed by Hilson and Murray-Webster(2006a) which aimed to achieve the understanding of risk attitude. On the other hand, many organizations and groups understand the methods of response is carried out in their out particular manner and they also can adapt to various risk attitudes depending on the situation in order to improve the risk management effectiveness.

Moreover, various studies consider that risk attitudes and judgements are very commonly related to the gender. Referring to Weber et al (2002), a research was taken which included a risk-taking assessment based on 5 different content domains which include, health and safety, ethical, financial decisions, social decisions and finally recreational. The findings of the assessment was initiated through a lapse of risk taking in which gender and content domain differenced are linked to the perception of differences between an activities benefit and risk rather than the change in attitude towards the apparent, which therefore, conflicted with Slovic (1999) specified that chances in attitudes of people lead to changed perception which equates to different judgements and risk because of the influence of different views and content regarding risk. Referring to Slovic (1999), risk management is very compliant of trust which is a gentle element that can be broken easily. This resembles the human psychology that is sided more towards distrust, because of the greater chance based on negative events and also the event of hearing bad news rather than gaining sources of good news. Despite that, Slovic (1999) also indicated that controversy and conflicts that occur in risk management are greater than science resembles them due to the fact that it is firmly implanted in the political and social traits of the high society.

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Cooper et al (2005) illustrates the risk management process and the engagement with the methodical treatment, of managing policies such as the procedures, processes of various tasks and creating the context which involves, identifying the risk, analysing the risk, addressing, treating and finally monitoring and controlling the risk. This also means that risk management process is very crucial for all phases of a project. Godfrey (1996), disagreed in contradiction with the decision-making formulation with regards to risk management. They illustrated that risk management is a procedure in which a on going learning process with regards to the certain sectors that are related to the manner that stakeholders communicate, interact, and refer to. Hillson (2002b) claimed that the process of risk management is related to the methods of which threat is managed, carrying out various practices of risk to identify the potential problems and seek for hidden opportunities.

According to Green (2001), risk management consists of many processes that are carried out to adopt the management of risk efficiency. Subsequently, risk management is occasionally restrained from technical issues in which is referred to as financial problems and risky operations. Jaafari (2001) speculates that risk management and uncertainty should not be separated in many activities because risk and uncertainty should be combined into decision making that are carried out throughout the project phases. This can be also seen as a process that is combined with real time project management operations.

Referring back to Hillson (1998), a section of that has potential room for alteration has been discussed with the involvement of best practices. However, this area has not been fully agreed upon and requires improvements in numerous parts of risk management with context to the project management phases and organization culture. Implying the structural approach of risk management by Hillson (1999), the aim was to combine the risk practice into the organisation culture and having the procedure create a combined management sector that is conjoined in rather than attached. Although, identifying and addressing the risk will enhance greater decision making by reducing any uncertainty and increasing the chances of the organization’s success rate. Risk management can evolve into the only crucial factor in accomplishing project and business success if the process is carried out correctly.

Brocal et al, (2017) explains the management of the new and emerging risks that occur in businesses. Moreover, technological development, organizational systems and new productions are sources of commencing risks (Băldău and Dumitraşcu, 2017). New and emerging risk are relatively related to the arrival of new potential dangers and exposures to the unknown (Marchand et al., 2017). According to Brocal and Sebastian, (2015), they have demonstrated that advanced manufacturing processes and new and emerging risk are very correlated.

Furthermore, relating to the European Agency for safety and health at work (2010) the increase of risk of new and emerging refers to the fact that the risk has just been developed and can be possibly caused by the processes, new technologies, change, workplace, stakeholders, new staff and the culture change in a organisation. The emerging side involves the risk being increased or getting larger, the risk leading to a hazard, the effect of the risk on the workers lives or jobs, the number of workers increasing and the increase of number of people affected. (Soeteman-Hernandez et al., 2018), categorised the different variables into newly identified, increasing risk and newly created risks.

One common issue was highlighted by Brocal and Sebastian 2(014), the fact that many enterprises tend to discover occupational risk despite the evolvement of new and emerging risks. Many organisations tend to fail by focusing on emerging risks rather than increasing risks. Numerous risks can be potentially defined and found at the early stages of the project in an organisation. Mazri (2017), explains that many risks have moved onto traditional ones because of the progression of knowledge and observation. He also referred to new and emerging risk as a certain point of a project that occurs during the risk life cycle.

Small and medium sized businesses have been analysed by many authors regarding risk and success rate. Romar (2009), specified the correlation between the strategic expectations with the organisation’s success of multiple companies. However, another researcher Sieger (2011), focused on the success rate of family orientated enterprises based on long term achievements.

Resolving contradictions was carried out by Jenson (2001), regarding conflicting indicators of business success with the relation of cost maximisation and the social well being of the organisations. Consequently, these authors, Bronsteen, Buccafusco and Masur (2013), studied a new area of business success which lead to believe that the wellbeing analysis is considered as a different element to the cost benefit analysis. On the other hand, many researchers focused on studying small factors which help assist the success of small and medium sized enterprises. They also researched on the potential influence by the managers beauty capital based on the success of the small and medium sized enterprise. Brown (2006), highlighted the fact that that the occurrence of business failure can lead to future business success referred to the hypothesis of S. Beckett. Wang et al. (2011) referring to the motivation approach to differentiate the success of small and medium organisations located in China processing electronic goods. The importance of contractual relation is crucial for small and medium sized enterprises because it assists them in becoming successful Berger-Walliser et al. (2011). A new form of contract was imposed, which was a visualised one.

Gottschalk and Niefert, (2011), researched on the factors of business success for small and medium sized enterprises with lead to the fact that it has an impact on the managers or the project managers gender as well as their appearance and the beauty capital which was referred to above. A great impact on the success of SMEs was based on the managers emotional intelligence, which was identified by Web, (2011). This is an important criterion that influences employee’s involvement in the processes of the business. Many researchers have tried to understand and illustrate the methods and pinpoint the issues with business success. A prime example is from the University of St. Gallen (Success Factors, 2013) in which a group a researcher studied the key success factors of SMEs in Switzerland. The positive effects on the business success relate to the qualities of the employees, infrastructure, uses of financial resources, and finally the social values of the business. On the other hand, the negatives aspects were led by factors such as the economic, including recession, and government control which contributed towards the taxation.

In Thailand, the business success factor was analysed by Chittithaworn et al. (2011) which concluded various features of the Thai economy and based on the research results the survey that demonstrated important factors were, communicating with the customers, management of the business and how the relations were with various stakeholders, usage of financial and external resources and impact of the external environment. Despite that, sectors such as management of innovations, the strategy of the business and after sale services did not create any impact of the success in small and medium enterprises.

Research was carried out to determine the business success rate for small and medium-sized enterprises based on the national economy of Pakistan. (Jasra et al, 2011). The research consisted of a survey that consisted of 7 factors that were very important, financial resources technological resources, entrepreneurial skills, the seek of government help, market strategy, business planning quality (decision making) and the gathering of information. Although the authors never mentioned the consideration of the human factor, involving the employees and professional and personal skills and attributes. Consequently, the research is missing some important facts from the list which is major for the large economy of Pakistan in which small and medium sized enterprises are focused on small industries and metallurgy and human resources.


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