Risk management - Assignment Example

Risk Management Risk Management The intake of 60kg adult, who consumes 2litres of the water per day over a period of 30 years of dichlorobenzene in the drinking water well, is determined by the formula below.Composite Risk Index= Probability of Occurrence X Impact of Risk Event 1.5x2 x365x30=32850Objectives of Risk ManagementThe objective of risk management is to assure uncertainties does not deviate or it does not overcome the necessary strategies in place, the endeavor from the business goals.

The objectives targets two events negative events are considered as threats and positive events considers as opportunities.How the General Public Perceive Risk The general public perceives a risk as unforeseen event that cause commotion among the people. It comes suddenly and affects everyone. It can be reduced by identifying the risks in advance and various strategies put in place to reduce it. The perception of the risks matter because it is a general concern for everyone. It does not target individual but everyone is exposed to risk regardless of the conditions in which they find themselves in (Hubbard, 2009).

How Risk Experts Perceive RiskThe experts perceive risks as an event which can be predicted and various measures put in place to reduce its impacts in case it happens. It is best understood in the risk management in which the uncertain events are defined earlier; their causes are evaluated and explored in accordance to the situation (Hubbard, 2009). Once the possible causes are identified, possible strategies to reduce the severe impacts are put in place. The perception of the experts matter because the strategies they put in place are trusted by the common person who might be affected by the risks at any time in life.

They identify the risk and give warning earlier of the coming events.ReferencesHubbard, D. (2009). The Failure of Risk Management: Why Its Broken and How to Fix It. Hoboken, New Jersey: John Wiley & Sons.