Benefits of Risk Management, Risk Management Frameworks Assignment

Benefits of Risk Management, Risk Management Frameworks - Assignment Example Importance of Risk Management Risk Management is extremely crucial because it helps the decision-making process regarding viability and competitiveness between organizations. It also helps in the creation of value which is the main factor to manage the business better in global markets when all organizations have equal access to available resources because then business processes to congregate on international standards. Operational efficiency can be increased by having plans for risk management already in place because it enables a business to do more for less. This means putting aside resources from regular expenditures in making strategic investments which will support company goals. A large percentage of the budget is spent on keeping the business running. Progressive organizations must have contingency plans to develop and expand resource deployment and implementation which will spare resources to concentrate on risk management strategies. (Mes 2010). Benefits of Risk Management Risk is always associated with insecurity and improbabilities with the possibility of things not turning out as expected. The benefits of risk management are that the organization is fully prepared for such eventualities and has a mechanism in place to handle risks and minimize losses. It is not possible to totally eliminate all risks, so good risk management develops awareness of risks when times are good, and perpetuates regulations and self-control during crises (Raz and Michael 2001). The benefits of risk management can be both long and short term. Accordingly, each stage of risk management efforts beginning from risk identification and evaluation and formulating alleviation or improvement strategies has its own benefits (Miller 1992). Question 2: Compare and contrast Management of Risk with another risk management framework (such as that offered in chapter 7 of Project Management by Larson and Gray), highlighting the similarities and differences between them.