The nature and importance risk management to businesses Assignment

The nature and importance risk management to businesses - Assignment Example A large firm’s cost of capital must rely only on its framework, not the entire risk of the organisation because investors can omit the manifold risks of single firms by grasping a well-variegated portfolio (McShane et al., 2011, p. 644). 3.0 Risk Management 3.1 Nature Business risk management is a process that can aid the firm determine risk situations and regulate the relevant risks. Nations such as South Africa, United Kingdom, and Australia have been adapting the framework of business risk management. It should be fathomed that risks potentially existed in any type of business organisation because one firm cannot withstand the industrial setting without encountering diversified forms of risks. There is, therefore, a spice to light up the world of business for organisational leaders to remain active. The risks are accompanied with hazards, which can cause harm and can be fatal to any perspectives. Where there are risks and hazards, there should be a proper regulation of busi ness risk management in order to annihilate the cause of its emergence. However, in today’s business environment, it is difficult to determine risk management of organisations because they are not postulated to disclose their business risk management framework (Gates et al., 2012, pp. 28-36). 3.2 Significance What signifies business risk management is that it can be utilised by business organisations to annihilate the emergence of hazards, and eventually omit the danger of its accompanied risks. Additionally, organisations with business risk management schemes can improve its organisational performance initially through enabling corporate executives to regulate the firm better. With the presence of business risk...To investigate the after-event of implementing the action plan requires thorough analysis. Such strategy is done to develop the action plan for its re-modification. Written documents should focus on the stakeholders; alongside optimum practices, such as scheduling c onventional meetings of every department. The external environment should be considered in the formulation of strategies; having a well-defined policies and safety programs should also be emphasised (Strong and Shane, 2011). 5.0 Conclusion Small and medium enterprises, as well as large organisations, need to manage risks in order to project the success of its activities and verify the solidity of its sustainable development. However, with the given facts and procedures in managing business risks, small organisations are smoothly impacted by the types of risks the relative industry has given. The optimum exposition that would best benefit large organisations in utilising business risks management is because they have more human resources and large operations compared to small firms. Most significantly, the economic changes in today’s environment create a big impact to a certain large company who does not practice business risk management. Not just hazards doom to backfire risks against firms, it also leads to bring a fast-developed cause to bring business to the catacomb of bankruptcy, insolvency and death.

Human Resource Management - Compensation, Benefits, Incentives Essay

Human Resource Management - Compensation, Benefits, Incentives - Essay Example e that incentives and benefits do very little to persuade a candidate to accept an organizations employment offer if baseline compensation is slightly below the candidates expectations. Of course, each person will try to get a salary that is higher. However, even young candidates will consider benefits and incentives. For instance, a person may be offered an hourly rate that is lower than he/she wishes. However, with free or discounted lunches, longer breaks, a kind manager, flexible hours, accessibility to work (distance), whom he/she will be working with (age group, environment), what he/she will be doing (perhaps working in an area or subject that he/she enjoys), etc. even the younger person will focus on these things and will realize that the benefits/incentives add to their quality of life. IF the younger person does seek the higher salary, eventually the extrinsic values of a job such as money will not be the overriding factor. He/she will eventually want more out of life if he/she is not happy with who they are working for, does not get discounts, enjoyable working atmosphere, etc. and will seek those things in a job. He/she will eventually quit the job and seek the intrinsic values. That is why younger people do not usually stay with a job for an extended amount of time. They move on. Of course, there are always exceptions to the rules but we humans will seek intrinsic values more even if it’s only internally. Look at the very wealthy people; i.e. movie stars. They have all the money in the world and yet file bankruptcy, have broken relationships, do drugs, get in trouble with the law, etc. They want more. It is true, younger people will look at baseline pay first. However, if the baseline pay is â€Å"slightly lower† as the very opening post stated, they will also look at the incentives/benefits even if the benefits aren’t so great. As stated in my earlier posting, if the pay is good but the other factors, which are called intrinsic