Historical Development Matrix - Assignment Example

of Phoenix Material Task: Historical Development Matrix Complete the following matrix depicting the historical development of risk management and quality improvement. Select 8-10 historical regulatory and nonregulatory events and activities over the 20th century that contributed to the theoretical foundations of risk management. The matrix must identify the name, year, and founder of the development; the nature of the development; and its importance in the development of risk management and quality improvement.

Use this table as a graphic organizer to summarize the theoretical underpinnings and historical development of risk management and quality improvement. Historical Development (Name, Year)Founder of EventNature of DevelopmentImportance to Development of Risk Management and Quality ImprovementEvaluations and estimations of risk by individuals (1983)Renn and SlovicNon regulatory provides the perception factors such as the personality ability to have some influence on risks. It also gives the heuristic analyses of individuals in making inferences thus shading more light on a generalization of risk information.

Organizational and social factors that influence management of risks and quality development(1989)Clarke &MayRegulatory This provides an insight into the organizational and social factors that are of great influence on risk management and quality improvement. Cultural values of organizations and social interests in risk management (1989). Bradbury, Stern & Rycroft Regulatory Gives an understanding of the variability of risk interpretation as per different groups of people and thus points out the problems facing organizations in their attempts to manage risks and improve quality.

Plausibility and coherence cultural approach to risks (1990)Scharz &ThompsonregulatoryGives the Worldviews and the cultural beliefs that establish how people are knowledgeable and how they interpret risks in an attempt to manage it and improve the quality. Firms should use derivatives to manage risks (1993)Pfliederer, PregulatoryThis shows the importance of using derivatives by firms as a way of risk management and quality improvement. Through this firms are able to reduce risks while at the same time having improved services and products for their customers.

The theory of investment and the cost of capital (1995) Smithson C & Nance D.Non regulatory relationship between the cost of capital and risk in investment are directly related. This shows that an increase in the cost of capital leads to an increase in the magnitude of risk. Therefore it calls for very high-risk management skills in order to achieve good quality. Strategic management (1997)Geczy & MiltonRegulatoryGives a guide to stakeholders on how to undertake risk management effectively in their firms.

Through strategic management, firms are able to minimize risks while improving quality. The determinants of organizations' hedging policies(1996)TufanoregulatoryThis gives firms both financial and quantitative analysis of the possible risks. The projection of the likely risk plays a key role in firms' risk management and quality improvement. pragmatic examination of risk supervision practices (1998)Williamson O.regulatoryShows the risk management practices that are applicable to particular organizations.

This enables firm stakeholders to employ the right risk management and quality improvement methods. Why respond to firms' use of derivatives (1999)Schrand C.regulatoryThis shows the importance of using derivatives in evaluating risks by firms. Derivatives give a more precise risk that is likely to occur. Firms that use derivatives in risk management are at less risk. Derivatives, therefore, are of a great deal in risk management and quality improvement.Works citedDenis, David. Agency Theory and the Influence of Equity Ownership Structure on Corporate Diversification Strategies: Strategic Management Journal, 1999, V.