Risk (Decision) Analysis --Hotel Investment Scenario - Assignment Example

The research identifies three aspects of risk management ought to receive a high amount of attention. One of these is risk identification the other aspect to consider is that of risk assessment and then there is risk management. The paper seeks to review the issues of risk management and analysis when choosing an investment which in this case is either between Sundowner and Magnifique. Risk Identification and Analysis In the case provided, it is important to analyze the situation of both Sundowner and Magnifique as a study.

The study shows how the external and internal risks are vital for identification in any company seeking to succeed (Wagner & Bode, 2009, 138). This is due to fact that risks not only present themselves from outside an organization but also from the interior. The research portrays deeply the various risks that a company has from the outside, which are the demand of the products, the environmental risks that the products have, the physical issues and the supply issues. Internal risks are other factors that the research portrays for the precise recognition of all the risks involved.

This brings to attention the fact that many of the contemporary business people tend to ignore the fact that interior risks are more dangerous than exterior ones and thus this acts as a major cause of failure. Identification of the various internal practices that a company takes is important, and the review and scrutiny of each is vital in that it acknowledges internal risks associated with the planning of the product flow from the producer, control and mitigation that may pose as negligible but very crucial.

Risk Assessment After clear identification of the various existing risks, the following step is the risk assessment stage. There are two major types of risk assessment, and these include the quantitative and the qualitative risk management procedures. Indulgence in these key properties is very important in Supply Chain Risk Management research. Both of the procedures have their importance and exclusion of any of them might have excessive repercussions on a company (Berman & Putu, 2012, 843). This is based on the fact that each one of them has its major points that work towards achieving a fully functioning risk assessment process.

Quantitative risk management is the type of management whereby the manager or the responsible personnel identifies various aspects of the risk through calculations and the use of diagrams to assist in the process of resolution (George & Lisa, 2004, 400). The research gets deep into this type of management with the use of various examples and analysis charts for further understanding of risk management. The study also focuses on the qualitative aspect of risk management that involves the review of the various theoretical notions that often bring about the occurrence of risks and consequently try to analyze an example of a company that undergoes this with its provided supply chain.

The study also seeks to identify the given five major steps involved in the risk assessment process. This is because for the success of any given policy in an institution, the management team of the company has to ensure that it is free from any previous risk, thus ensuring a smooth flow of workload. The first step that a company should take towards risk assessment is identifying the hazard (Martin & Hau,