Peer Response DQ1JB and DQ2ZH - Essay Example

DQ1 I agree with you that risk management can be used to minimize bad outcomes for a company. For instance risk management can be used to evaluate the environmental risks that can negatively affect a company. Locations that are prone to natural disasters such as earthquakes, hurricanes, tornados, volcanoes, and floods are places that must be carefully studied prior to penetration. A way to mitigate the risk of damage caused by natural disasters is for companies to purchase insurance protection.

“Insurance and other risk financing strategies are viewed as efforts to recover from negative income shocks through risk pooling and transfer” (Bayer & Mechler, 2008). Another good comment in your response that I liked is that companies that use risk management are efficient at optimizing. Complying with production methods such as Six Sigma can optimize a production line. “Six Sigma at many organizations simply means a measure of quality that strives for near perfection” (Dickerson, 2004).

Legal mitigation is a risk management practice because it can lead to out of court settlements that save companies from incurring in bad press that hurts the corporate image of the company. Multinational corporations have to be adept at risk management due to legal, regulatory, and culture factors that make each country unique. Jones Paul George once said, “It seems to be a law of nature, inflexible and inexorable, that those who will not risk cannot win” (George).DQ2 I agree with your premise of complying with regulations and implementing risk management initiatives can be useful for an organization.

In the chemical industry it is imperative to have superb security measures. Implementing risk management techniques is more effective when the executive management team supports prevention and well-being programs. Companies must establish contingency plans to be prepared to deal with any type of situation or scenario that is considered a business risk. Another type of risk that must be dealt with as part of a risk management program is financial risk (Guzman, 2012). In your response you mentioned CRM tools can be used effectively to lower risks.

The utilization of CRM can be used to improve the relations with the customers of the company (Crm, 2012). Improving security measures is a risk management technique that protects the assets of a company. A good risk management focuses on three areas: human resources, physical resources, and financial resources (Corbett, 2004). ReferencesBayer, L., Mechler, R. (2008). Insurance against losses from natural disasters in Developing Countries. Retrieved May 18, 2012 from http://www.infoworld.com/t/business/optimizing-business-processes-867 Corbett, R. (2004). A View of the Future in Risk Management.

Risk Management and International Journal, 6(3). 51-56. www.ask.com/web?q=Business+risk&search=&qsrc=0&o=10148&l=dis&locale=en_US Crmtrends.com (2012). CRM Trends. Retrieved May 18, 2012 from http://www.crmtrends.com/ George, A. Famous Quotes. Retrieved May 18, 2012 from http://www.inarm.org/?page_id=400 Guzman, O. What is business risk? Retrieved May 18, 2012 from http://smallbusiness.chron.com/business-risk-96.html Dickerson, C (2004). Optimizing Business Practices. Retrieved May 18, 2012 from http://www.infoworld.com/t/business/optimizing-business-processes-867