Risk Management Systems Essay Example | Topics and Well Written Essays - 750 words

Risk Management Systems - Essay Example In practice, the process can be very difficult and balancing between risks with a high probability of occurrence but lower loss versus a risk with high loss but lower probability of occurrence can often be mishandled. Intangible risk management identifies a new type of risk - a risk that has a 100% probability of occurring but is ignored by the organization due to a lack of identification ability. For example, when deficient knowledge is applied to a situation, a knowledge risk materializes. Relationship risk appears when ineffective collaboration occurs. Process-engagement risk may be an issue when ineffective operational procedures are applied. These risks directly reduce the productivity of knowledge workers, decrease cost effectiveness, profitability, service, quality, reputation, brand value, and earnings quality. Intangible risk management allows risk management to create immediate value from the identification and reduction of risks that reduce productivity. Risk management also faces difficulties in allocating resources. This is the idea of opportunity cost. Resources spent on risk management could have been spent on more profitable activities. Again, ideal risk management minimizes spending while maximizing the reduction of the negative effects of risks. In Norfolk Sentara, they have developed different programs to lessen the risks associated with diseases and they have implemented these programs efficiently that they have received recognition for their patient safety assurance. Norfolk Sentara addressed the needs and safety of their patients as if they were their own relatives. They work hard to provide the best patient care possible and also to provide treatment plans that will help alleviate the patients' pain and sickness.  Ã‚