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Error, Hazard, and Risk as Organizational System Problems - Admission/Application Essay Example

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In the paper “Error, Hazard, and Risk as Organizational System Problems,” the author analyzes risk management, as a part of organizational decision making and more important part of organizational processes. Organizations engage in risk management in order to make informed choices…
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Error, Hazard, and Risk as Organizational System Problems
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Download file to see previous pages Objective risk varies across different cultures and regions. The two perspectives in which experts look at risk raise an important issue. That is, whether the risk is a human factor that can be controlled, or risk is an organizational system problem. Organizations engage in risk management in an attempt to minimize the future possibility of incurring losses emanating from the activities that they engage in (Davis, Anthony, and Peter 11). As such, risk, error, and hazard are organizational system problems and not a human factor.
According to the ISO/DIS 31000 (2), risk management is part of organizational decision making and more important part of organizational processes. Organizations engage in risk management in order to make informed choices. Before taking any course of action, it is critical that organization evaluate all the available courses of action and make informed decisions as to the most suitable course of action (Wheeler 219). With risk management, it is possible for organizations to make choices that ultimately contribute towards the fulfillment of organizational objectives. As such, risk, is a part of the organizational decision-making process, with the organizational objectives in mind. It is an organization’s systems problem and not a human factor problem.
Slovic and Peters (322), note that human beings evaluate risk based on intuitive feelings. A recent study on how human emotion affects risk perception showed that anger and fear have positive effects on risk. The study found out that fear amplifies risk estimates, while anger attenuates them. This study underscores an important issue regarding risk and risk management by organizations. That risk management as a process depends on the best available information (Das 531). This information could be from past experiences (which may arise anger and fear among decision makers), could be from feedback, expert judgment, and forecasts.  ...Download file to see next pagesRead More
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