Analysis and Measurement of Risks in Business: A Case Study on the Jordan Valley Authority (original) (raw)
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9 Analysis and Measurement of Risks in Business: A Case Study on the Jordan Valley Authority
2016
This research attempted to shed light on the different measures used to evaluate risk. The research examines the Jordan Valley Authority’s risk measurements and explores the different procedures and techniques used to evaluate, or avoid (in some cases) risk. The research found that despite the existence of various quantitative methods to measure risk, the standard methodology used by Jordan Valley Authority is based on experience and intuition. Most managers, in this study relied heavily on the manager’s experience to handle risk. There are two ways to manage risk. The first is to avoid scenarios that could lead to a risky situation, causing the organization to divert from achieving its goals, and the second deals with reducing the effect of danger (or harm) caused by risk.
This research attempted to shed light on the different measures used to evaluate risk. The research examines the Jordan Valley Authority's risk measurements and explores the different procedures and techniques used to evaluate, or avoid (in some cases) risk. The research found that despite the existence of various quantitative methods to measure risk, the standard methodology used by Jordan Valley Authority is based on experience and intuition. Most managers, in this study relied heavily on the manager's experience to handle risk. There are two ways to manage risk. The first is to avoid scenarios that could lead to a risky situation, causing the organization to divert from achieving its goals, and the second deals with reducing the effect of danger (or harm) caused by risk.
Risk Tanımı ve Ölçümünün Risk Açıklamaları Üzerindeki Etkileri: Ampirik Bir Araştırma
Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu dergisi, 2023
The literature on risk has focused on different issues, such as the quantity and quality aspects of risk, how efficiently it is reported, and its role in increasing transparency. The current study aims to investigate the impact of risk meaning and risk measurement (assessment) on risk disclosure. In light of the empirical findings, this research study provides an indepth understanding of the relationship between risk meaning and measurement and risk disclosure. This study considers the perceptions of the stakeholders; investors, shareholders (owners), management, and external auditors, because they are either users of risk disclosure or preparers of this kind of information. The data for the study were gathered using a questionnaire, which was distributed to key stakeholders. The study revealed a positive relationship between the meaning of risk and risk disclosure on the one hand and a positive association between the measurement of risk and risk disclosure on the other. This study extended the literature by providing empirical evidence that disclosure of risk can be affected by the meaning and measurement of risk on one side. Furthermore, Provide information about business environments such as those in Sulaimaniyah, Iraq.
The main objective of this research was to study the impact of risk management on construction projects success. The survey which was directed to the participants was developed according the research design, approach, and data. This survey includes two major sections. The first section asked about the procedure followed in the organization to manage the risk. In section two, the survey attempts to specify if the project they experienced achieved the success criteria, this was according 7 criteria factors were defined for construction project success listed in the questionnaire. The distributed questionnaires were 230 questionnaires and got 200 questioners back with percentage of 87.4%. The results of the current study indicate that there is an impact exists between both Risk identification and Risk assessment on project success, scheduled time, planned budget, and the ability to comply with technical specifications. While there is no impact between Risk assessment and avoiding lawsuits or claims. Also the study indicate that there is an impact of Risk response on project success, meeting the scope of work, scheduled time, and achieving the quality standards.
Risk Management and Analysis: Risk Assessment (Qualitative and Quantitative)
We use to define risk as the possibility of suffering a loss. Starting this, risk management is defined as a business process whose purpose is to ensure that the organization is protected against risks and their effects. In order to prioritize, to develop a response plan and after that to monitor the identified risks we need to asses them. But at this point a question is born: should I choose a qualitative approach or a quantitative one? This paper will make a short overview over the risk evaluation process also proposing a new approach in this direction.
Risk Management (Elements and Process)
2014
Objective: There have been various organizations that experienced irreparable failure despite many successes whether managers of these organizations have not been predicted these problems? Materials and Methods: Administrative techniques of organizations are applying a comprehensive plan of risk management to identify threats and assess undesirable consequences in order to reduce likely consequences. Results: Most organizations try to establish an effective risk management structure. Created risk in every organization should be controlled and managed, but sometimes even one problem may threats professional management of organizations by its effect. In this situation manager should evaluate all available options, so that each option should meet customer’s satisfaction. Conclusion: Therefore, effective risk management needs a suitable regulatory framework and desirable expansion of institutes, markets, and infrastructure and desirable financial tools. It enables manager to identify un...
Risk analysis and risk management
EDPACS, 2004
In the Tigris-Euphrates valley about 3200 B.C. there lived a group called the Ashipu. One of their primary functions was to serve as consultants for risky, uncertain, or difficult decisions. If a decision needed to be made concerning a forthcoming risky venture, a proposed marriage arrangement, or a suitable building site, one could consult with a member of the Ashipu. The Ashipu would (1) identify the important dimensions of the problem, (2) identify alternative actions, and (3) collect data on the likely outcomes (e.g., profit or loss, success or failure) of each alternative. The best available data from their perspective were signs from the gods, which the priestlike Ashipu were especially qualified to divine. The Ashipu would then create a ledger. For each alternative, if the signs were favorable, they would enter a plus; if not, they would enter a minus. After the analysis was completed, the Ashipu would recommend the most favorable alternative. The last step was to issue a final report, etched upon a clay tablet (Oppenheim, 1977). According to Grier (1980, 1981), the practices of the Ashipu mark the first recorded instance of a simplified form of risk analysis. The similarities between the practices and procedures of modem risk analysts and those of their Babylonian forebears underscore the point that people have been dealing with problems of risk for a long time, often in a sophisticated and quantitative way. This chapter reviews the history of risk analysis and risk management giving special emphasis to the neglected period prior to the 20th century. It is hoped that this review will serve to (1) dampen the prevailing tendency to view present-day concerns about risk in an ahistorical context, (2) shed light on the intellectual antecedents of current thinking about risk, (3) clarify how contemporary ideas about risk analysis and societal risk management
Integrated Risk Management System – Key Factor of the Management System of the Organization
Risk Management - Current Issues and Challenges, 2012
Risk Management-Current Issues and Challenges 254 2.1. Conceptual approaches for risk In general terms, risk is part of any human effort. Once we leave to go back home, we are exposed to risks of different levels and degrees. It is significant that some new risks are completely voluntary, and some are created by us through the nature of activities. The word "risk" derives from the Italian word "risicare", which means "to dare". In this sense, the risk is a choice, not fate 1. From this definition it follows that the risk is not an option, but we are permanently exposed to risk in everyday life, what is really important is that each time, to gain control over it. Nowadays there is no unanimously accepted definition of the concept of risk by all specialists in the field. Among the most commonly used definitions, we present the following: "Risk is the possibility of obtaining favorable or unfavorable results in a future action expressed in terms of probabilities." or "Risk is a possible future event whose production could cause some losses." or "Risk is the threat that an event or action to affect in a negatve manner the capacity of an organization to achieve its planned goals. 2 " The analysis of these definitions of risk gives rise to the following conclusions: a. Probability versus consequences. While some definitions given to risk focus only on the probability of the occurrence of an event, other definitions are more comprehensive, including both the probability of risk manifestation and the consequences of the event. b. Risk and threat. In defining the concept, some experts have put an equal sign between risk and threat. We specify that a threat is an event with a low probability of manifestation, but with high negative consequences, since the probability of manifestation is difficult to assess in these cases. A risk is an event with a higher probability of occurrence, for which there is sufficient information to rate the probability and consequences. c. Comparing only negative results. Some concepts about risk are focused only on negative events, while others take into account all variables, both threats and opportunities. d. Risk is related to profitability and loss. Achieving the expected result of an activity is under the influence of random factors that accompany it in all stages of its development, regardless of the domain of activity.