Identification of Context for Risk Management
Identification of the context for risk management is vital in establishing the internal and external parameters that are considered when responding to risks. Identifying tools and ensuring all reasonable steps are taken to determine risks is essential to estimate the inputs required in responding to the risks. On the other hand, it is vital to document the identified risks according to the relevant policies, procedures, legislation, and standards. Documenting the risks according to these policies helps in the creation of knowledge on the likelihood, the consequence, and the risk owner. Documentation helps in understanding the probability as the measure of the expected frequency of occurrence of the risk, while the consequence measures the expected level of effects. Documentation can also identify the risk owner as the personnel responsible for managing the identified risk.
Evaluating Risks
When evaluating risks, it is vital to analyze and document the risks in consultation with the relevant stakeholders to know the participants and the model of response when the risk occurs. It is also important to undertake a risk categorization and determine the level of risk. Classification of risks helps in classifying the risks as internal, external or strategic, which allows in devising the strategic plan to avoid or minimize the impact.
Part B: Practical Situation
The practical example of a risk situation I managed at the workplace was that of a fire outbreak. The nightclub has a kitchen, which uses electric and gas appliances that pose risks of fire outbreak. In the course of management of the risk, the management team should communicate with fire extinguisher teams, the staff and the customers. In this case, the staff and the customers were alarmed to evacuate from the nightclub. The fire extinguishers were called to put off the fire. The identified risks in the work areas include the high temperatures in the cooking area, gas leaks in the gas stores, electricity in electric appliances, and falls from heights like the dais for performance. The risk management policies include installing fire extinguishers, inspecting the electric installations, training the staff to spot and report any faulty electrical plugs, and improving the ventilation system at the nightclub.
