Risk Management Critique Risk Perceptions

Question: Discuss about the Risk Managementfor Critique Risk Perceptions. Answer: Introduction Risk management is the method of identifying, analyzing, and accepting or resolving the uncertain issues in decision-making process. According to Heckmann, Comes and Nicke (2015), risk management is the sequential process of assessing and controlling the threats to the capital management within an organisation. The threats can be involved with different sources, such as legal liabilities, financial uncertainties, or the emerging errors in the strategic management. In some of the cases, the security threats from the information technology can be most disastrous situations for the companies. The study will thus focus on the critique associated with the risk perceptions in the context of the risk management procedure. The identification of the key concepts will be described in this study to assess the merging of the risks during the emergencies. Critique Risk Perceptions in the Context of Risk Management According to Wachinger et al., (2013), the risk occurs due to the damage of the phenomenon, physical events, or errors in the human activities. It may cause the losses, property damage, injury, economic disruption, or environmental degradation. When the suffering ratio becomes higher due to the increasing challenges caused due to the risks, it will create the hazardous situations. The engineers or the social scientists often face the vulnerable situations in the risk management aspects. Kellens, Terpstra and De Maeyer (2013) implied that when there is the emergence of high risks, the individuals or the groups in the organisations tend to capture the vulnerable images. It is to be indicated that risks and risk perceptions are essential for the research and compliance process in the organisations. Currently, people have the perception that the outcome of the risks is generally negative for every individual and group in the organisation. However, the traditional approaches indicate that risk management sometimes signifies the positive outcomes as well. The policy makers require obtaining the insightful ideas from the risk perceptions before implementing any organisational policies. It will be effective enough in minimizing the severity of the emerging risks. Moreover, it will be beneficial in communicating the government policies to understand the significant areas associated with risks. People can gain insights about the relevant reactions during the emergency when they can differentiate the measurements and perception of risk severity. The factors associated with such perceptions are as follows: The reaction differs based on the situational aspects and severity level of risks (Hopkin, 2017). It is sometimes seen that the severity of the involuntary activities is more than the voluntary activities. Similarly, the severity of the emerging risks is higher than the existing risks (Bahr, 2014). The risk perception is often aligned with some of the psychological aspects. The assumptions made before undertaking any necessary organisational decision is necessary for identifying the probable risks (Wachinger et al., 2013). These risks sometimes may affect the organisational functionalities to some extent. Hence, the judgment presented regarding the assumed risks is necessary for measuring the probability of the emerging risks. The obtained idea from the above information depicts that it is necessary to judge the perception of the risks for undertaking the relevant organisational decision. In order to gain insights regarding the risk perception, it is necessary to judge the probabilities and quantifications. Key Concepts used for Assessing the Risks of the Emergencies and Disastrous Situations Some of the key concepts are used for assessing the risks and the emergency occurrences. These key concepts are hazards, vulnerability, and capacities. According to (), hazardous situation occurs when there is the possibility of the potentially damaged phenomenon, physical events, and human activities. Vulnerability ensures the condition of the individual or system in which the hazards can become disaster. On the other hand, Ostadtaghizadeh et al, (2015) mentioned that the capacities are conceptualized as the set of skills, knowledge and resources to deal with the emergencies or hazardous situations. These concepts be quite interlinked with each other. During risk management situations, there is the high possibility to occur such events. It is to be indicated that the traditional and local knowledge as well as the technological improvements can be considered as the fruitful capacities for mitigating the risky situations (Gaillard Mercer, 2013). The organisations need to develop the capacity for resolving the potential risks that can affect the organisational functionalities in a significant way. Another component of risk management is resilience, which defines the ability to overcome the damages created by the natural hazards, either through maintaining the social fabric or pre-disasters or through accepting the larger changes (Olson Wu, 2015). Resilience is another recognizable problematic concept that resists changes within an organisational scenario. In order to minimize the severity or vulnerability of the risks, it is essential to identify such associated components with risk management. Conclusion Risk management process of an organisation is depended on some of the specific elements. These elements are needed to be recognized to understand the severity and method of minimizing the risks. Presenting the risk perceptions helps in measuring the probability of the risk vulnerability of the emerging risk. Every organisation needs to identify the elements and gather ideas about perceived risks for understanding the relevant factors included in the organisational decision-making process. In fact, the existing risks can be less severe than the emerging risks. This process will be helpful in establishing the risk compliance process within an organisation. It can be mentioned that the judgment presented regarding the assumed risks is necessary for measuring the probability of the emerging risks. References Bahr, N. J. (2014).System safety engineering and risk assessment: a practical approach. CRC Press. Gaillard, J. C., Mercer, J. (2013). From knowledge to action: Bridging gaps in disaster risk reduction.Progress in human geography,37(1), 93-114. 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