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Workplace Safety Initiative Proposal

WorkplaceSafety Initiative Proposal

Principlesregarding safety and health are worldwide, but the size of theorganization determines the level of action necessary, the dangerthat its activities pose, the organization’s physical features,either products or services and how adequate the prevailingarrangements are. There is a similarity between various elements ofsafety and health management which are efficient and businessessuccess, protection of the environment and practices of soundmanagement which are encouraged by supporters of quality control. Asa result of commercial companies applying the same useful businessproficiency to safety and health, they also succeed in security andhealth administration. Quality management entails protection ofservices, environment, and products physically while healthmanagement in working institution comprises securing of persons andensuring that there is a safe culture amongst the employers andemployees. For quality management to succeed there is a requirementof initiation of encouraging organizations traditions. There is alsoan emphasis on the importance of all workers should being involvedactively in the process of quality.

EnterpriseRisk Management

Enterpriserisk management is defined as a harmonized method to give anassessment, analyze, moderate and screen the risks and chances thatbring effects to an organization planned goal achievement. It offersits concentration to the approach and makes an expansion to thetraditional risk-management procedure to make inclusions that are notonly in association with losses due to accidents contradictory totraditional risk management. Its intention is to create a movementin the organization from split and sensitive method across partitionsand gives a variety of solutions to the enterprise. In historicalperspective, risk has been taken as a something that should beevaded. Enterprise risk management comes to solve this by taking abroad view in evaluating uncertainties and opportunities. This riskhas arisen as a concept and also managing role within organizationsbeginning from the mid-1990s.

Thehistory of Enterprise Risk Management can be traced from the 1940s tothe start of 1950s. There existed two general ideas of riskmanagement in an exercise that of late have been combined withEnterprise risk management. One of the concepts is concerningmonetary and insurance risk. In a long time, corporations have hadthe capability in transferring uncertainties to insurance companies.Among these risks include natural calamities, individual’s errorsbut due to the expansion of insurance markets, the transferring ofsome of the risks was made possible (Dickinson, 1997). Due to thepresence of the insurance markets, the managers were forced to optother ways of buying insurance. Through efficient avoidance of lossavailability of schemes to regulate some of the insured risks wereprevented from happening or rather their effect was minimized. Someof the risks could be taken care of without the company. Thisresulted in a bigger style of managing insurance risk. Firms startedlooking attentively at their management of financial risk like pricesof commodities, rates of interest and price of the stock in the1970s. Formally, risk management commenced at the same period as thegrowth of commercial derivative goods. This did not happen as anaccident as banks of investment had come up with financial tools andtheir related markets to permit their business clients to evade theabove monetary risks. Therefore, there is a similarity in theemergence of financial and insurance risk. The fact that there wereeconomic goods made a stimulation to the management to existence theamount of risk that would be retained and one which would be let govia external provisions( Deloach, 2000)

EnterpriseRisk Management has its advantages and disadvantages. Some its proswill be outlined below. ERM plays a significant role in avoidingfinancial surprises and also makes an improvement in calculatedplanning efforts. It also affirms the integrity and reputation of theorganization, and it has the capability to respond in cases wheresubstantial errors happen efficiently. To add it all, Enterprise RiskManagement can effectively manage risks and opportunities by aligninglimited resources in an improved way. Sustaining competitive benefitover competition and its ability to respond effectively to the risingnumber of the diversity of risk is also a benefit. To finalize withthe pros, ERM leads to improvement in communication regarding riskamong the senior manager thus resulting in better-informed choices,improved resource allocation and healthier practices in governance.Some of the challenges faced with an ERM structure include thefollowing the firm has to establish a common risk language and alsoidentify band describes the risk in inventory. Actions plans have tobe developed to guarantee that the there will be the management ofrisks in an appropriate manner. Also, there must be the monitoring ofresults of actions taken in mitigation. Besides, a straightforwardway of giving EMR explanation to people who possess widely diverseabilities, interests and experience irrespective of businessfunctions has to be devised. There has been the implementation of ERMin Maryland University, and its summary came in three steps whichinclude the identification of the risk, assessing the risk andrecommendation of the risk.

EMRhas defined responsibility for various units in the organization. Thecorporate management has different roles in risk management. Topmanagement is involved in the determination of planned tactic to riskand setting risk appetite and also establishes the structure formanagement of risks. Furthermore, there has to be an analysis of themost necessary risks that can occur in an organization and the topmanagement should take control of it. In times of crisis, the CEO orthe board should manage the organization.

Thebusiness unit managers should establish risk awareness culture withinthe group and also make an agreement on the targets of riskmanagement performance. Moreover, he should see to it thatrecommendations for implementing risk management are improved. Incase there are any changes in circumstances already outlined, theunit business manager should report to, the organization. There isalso the risk manager, who is responsible for understanding,accepting and implementing the risk management processes (Lam, 1999).Reporting wasteful and needless or workable controls and making knownloss incidences and any close events are also some of his duties.Finally, working he should co-operate with the management in caseswhere there are occurrences to be investigated. The internal auditmanager should be of help to the management in developing arisk-based internal audit program and also carry out the auditing ofthe risk procedures across the company. He should also give assuranceon the risk management whenever it is received. Additionally,reporting on the efficiency and effectiveness of internal control ispart of his duties. The specialist for risk management should offerhelp to the organization in establishing particular risk policies anddeveloping specialist contingency and plans of recovery. He shouldalso stay informed about the developments that come up in thespecialist area.

Theindividual employees or staff should take the initiative ofunderstanding, accepting and implementing risk management processesand also report unworkable controls to the top managers. They shouldalso report events and near miss incidents and also stay inco-operation with the management in cases where some incidences getto an investigation.

Riskmanagement is increasingly becoming an essential company driver, andinvestors have raised their concerns on the issue (Zech, 2001 ).Risks may result in the making of various decisions in anorganization and maybe make the business people uncertain. When abody takes time to analyze the different types of risk, it considersall the likely impact that the threat might come from all processes.In any business, it is vital to profoundly comprehend the risk to beundertaken with the aim to achieve specific goals for the success ofthe organization. When intending to work on the improvement of riskmanagement performance, there should be an establishment of theprofits to be anticipated from the whole process. Some of the resultsthat come about due to successful risk management entail complianceimproved decision making and assurance. Various opinions exist aboutthe things that risk management involves, how to go about theprocesses of implementation and how its achievement can happen. Withthe attainment of Enterprise Risk Management initiative, there can bethe probability and significances of risk materializing.

References

DICKINSON,G.M., 1997, “Integrating Insurance and Hedging into the Overall RiskManagement of the Firm“, Singapore International Insurance andActuarial Journal, Inaugural Issue, Vol.1, August, pp. 161-173

DELOACH,J., 2000, Enterprise-wide Risk Management: Strategies for LinkingRisk and Opportunity. London: FT-Prentice Hall.

ZECH,J., 2001, “ Rethinking Risk Management: The Combination of Financialand Industrial Risk“, The Geneva Papers on Risk and Insurance Issuesand Practice, Vol. 26, No. 1, January, pp. 71-82.

LAM,J., 1999, “Enterprise-Wide Risk Management and the Role of the ChiefRisk Officer “, Ivey Business Quarterly, Issue 3, pp.10-18.