Risk and Risk Analysis

Risks” are the threats that a business may have to face due to some uncertain and unexpected events resulting in a destructive impact on its financial system and overall operation. Systems can be prepared for the undesirable alternatives. It is not always possible to evade every risk factor but risk analysis and security surveys help us identify the possible loopholes in the organization and minimize the loss. Also, they help us to determine the best actions in the worst scenarios (Broder, 2006).

individual life associated with it and the respective country’s economic growth. A high rate of jeopardy involved in a business discourages people to get associated with it and hamper the overall growth.

technology that has created highly sophisticated hazards that make risk management more complicated and crucial. The security industry is growing at a fast pace to cater to the growing menace. Increasing terrorist activities, advanced weapons having difficult to track activities have placed the whole world in concern. It is rather easier to tackle the external threats than the factors internal to the business which proves to be a major challenge.

Every potential risk causing factor or threat (apparent or anticipated) should be considered. Prioritizing risks is a very critical step as the resources to be spent on security might be limited. Complete study of all the odds should be done. history of floods, fire, earthquake, flaws in the structural design of the building, condition and standard of the material used in the building, installed alarm or smoke detection systems, cross-examination of the employees, medical tests of the employees at the time of hiring, any cases of sexual harassment or violence, any danger or envy from a competitor or (international or domestic) terrorist groups, racism issues, etc.. Any past records of calamity can be very helpful. The next task is to determine the degree of danger posed by each of the peril.