Competencies of the Risk Management - Coursework Example

 Risk Management Table of Contents Introduction 2 Health and Safety Legislation about Risk Assessment 4 Fire & Rescue Services Act, 2004 6 Integrated Risk Management Plan 8 Conclusion 11 References 12 Introduction Risk Management is an area of expertise in the management field.  The risk management is expressed as one of the processes which involves implementing and also making decisions that will reduce the unfavorable effects of fortuitous losses upon a company.  Making these judgments involves five steps of procedure: (1) recognizing loss exposures; (2) examining substitute risk management process; (3) choosing the most excellent risk management process(s); (4) executing chosen risk management process; as well as (5) monitoring the feedbacks to make sure the risk management plan remains effective ( Rice University, 2003).  Modern risk-management program are stands on prospects of tremendous dollar losses (e.g., actions like Value at Risk [VAR]), but these actions confine only the story part. Some complete risk management scheme must deal with two other significant factors: prices as well as preferences. Jointly with prospects, these encompass three P’s of entire Risk Management. By fusing existing investigation in psychology, economics and also decision sciences, as well as through a ruthless research program to make bigger this fusion into another discipline, a systematic and complete approach to normal decision making delves deep into the area of risk management. Even though normal decision making into uncertainty is as a result of no means of any fresh aspect of human condition, current events have assist to deepen and renew our attention in risk management. Two things in exacting have formed this trend: proceeds in the financial technology (replicas for pricing imitative instruments as well as computationally effective means for put into practicing them) and also a growing demand for fresh as well as exotic financial-engineering goods (possibly because of amplified market instability, or merely on account of the increasing complexity of global financial scheme). These forces, attached with such fresh calamities like those of Gibson Greetings, Orange County, Procter & Gamble, Metallgesellschaft, and also Barings, give more than enough motivation for flourishing risk-management organizations. Present risk-management programs focus almost totally on the numerical features of risk. To give an example, one of most valuable risk management equipments has been Value at Risk (VAR), explained in J.P. Morgan’s (1995) as Risk Metrics system. It describes Value at Risk (VAR) as an approximation with predefined buoyancy interval. It tells about how much a person can lose by holding a spot over a fixed horizon. These types of statistics can be useful which covers an asset classes set products used through financial institutions, institutional investors as well as corporations. While measures such as VAR play a crucial role in measuring risk coverage, they encompass merely a piece of risk-management riddle: probabilities. Probabilities are an essential input in the risk-management program; although they don’t decide on the risk that a corporation may bear and also the amount of risk one should hedge (Massachusetts Institute of Technology, February 1999). Health and Safety Legislation about Risk Assessment The Occupational Health and Safety Regulation of Environmental Health and Safety school hostel is devoted in creating a hostel which is free from hazards to students as well as the staff. By a multiplicity of prevention techniques and risk assessment, occupational safety’s focal point is on decreasing possible hazards earlier, much before they develop. This plan is undertaken with developing huge written programs to facilitate ensure fulfillment with Federal, Local and State laws as well as to make sure that the possible risks are correctly communicated to every affected individuals (Mount Sinai School of Medicine, n.d.). Risk assessment can be considered as a continuing process, not like any one-time project. This process is defined as a group of steps which are frequently repeated. In the outset, on the other hand, there is one startup procedure which normally is not repetitive. Conducting university-wide information of risk assessment is a process which will need powerful commitment from higher administration as well as teamwork between the cross-functional parts. Assessing the information risks is a management issue and is not a technological issue; so, for it to be optimum useful, the procedure has to be considered as a responsibility of every member in the management. In view of pending as well as current federal and also state legislation, this is very important for universities to distinguish that information which include risk management have to be a part of the strategic planning. According to the difficulties of university environment, university-wide information of risk assessment needs planning and, more significantly, a strategy which systematically amplifies the possibility of information of risk assessment and at the end of it includes every university regions. An efficient university information of risk assessment requires developing into the cultural part of university community, concerning not only the IT-member but also every administrators, staff, students as well as faculties. Education and also awareness efforts can be intended at all these constituencies (Risk Assessment Working Group Educause, n.d.) . The CFA (Combined Fire Authority) is accountable for the service of rescue from fire in England. It comprises of twenty-five selected councilors haggard from Lancashire County Council, Blackpool Council and Blackburn with Darwen Council. Their accountabilities are specified in Fire and Rescue Services Act 2004, which largely requires the training, provision as well as equipping of fire service to commence the following core functions: Fire fighting Fire safety Saving people from the traffic accidents Emergency activities (except than fires and traffic accidents) The CFA have to also make sure that the rescue service as well as fire work is effective, efficient and serves best value. Combined Fire Authority is also accountable for implementing fire safety rules and regulation in public as well as commercial buildings by Regulatory Reform (Fire Safety) Order 2005 and, at the same time as a part of bigger emergency role, Category 1 responder beneath the Civil Contingencies Act 2004 is selected. CFA also takes the support from the other functional groups that are responsible for: Resource Planning Audit Performance Standards Appeals Fire & Rescue Services Act, 2004 The key purpose of Fire & Rescue Services Act, 2004 is to give reorganized fire and rescue service which takes action as per the meticulous demands of 21st century. This Act retracts the Fire Service Act of 1947. This act provides for much needed solution to the mass of proposals as per the White Paper published on 30th June in the year of 2003. This Act applies into the England and also Wales only. Fire rescue is one of the most significant public safety movements. A distinctive scenario of fire rescue procedure commences with a fire alarm call, which sends one fire fighting team to the fire field. Generally, one fire fighting team includes one of each incident commander vehicle, ladder vehicle and two engine vehicles as well as the squads of fire fighters. Throughout the procedure of fire rescue, the incident commander is gives out orders to the team as per the needs of the fire rescue condition including supervising the fire field as well as making real-time program on the firefighting job. The two engine vehicles bring water that will be utilized in case after water is deficient in near fire field and ladder vehicle grasps the usefulness like ladders which are needed through the firefighters. The firefighters are prepared into various groups at the beginning of their fight as per their specialty to get rid of fire in fire field. This fire rescue function mode has numerous shortages. Firstly, the incident commander doesn’t have clear sight of neither position of firefighters following the rescue effort starts nor the actual situation of fire field and as a result, it is hard for the commander to make an effective schedule. Secondly, firefighters into the fire field might not know the hazardous situation that is happening in other parts of the fire affected area. Finally, this is hard for fire division headquarters situated far from fire field to acquire news as well as timely fire rescue information that is mostly important for the big cities which might have multiple fires at same time (Wayne State University, n.d.). Once in a year, university communities stick together for a period to try to get better safety situations on school campus. The team which consists of police officers with faculty, students, and staffs, are then allocated to different zones all through the campus. The teams stroll thoroughly across their zones, pointing out anything that is lighting matters or can cause threat to students’ safety from hazards. The Dean of University Housing staff and students, Inter-Residence Hall Council, Student Government Association, as well as FSU Police work endlessly to set a plan for the students’ events as well as to support safety awareness. School students are most commonly mistreated and so far, are apathetic about the safety concerns. To sponsor students' safety during security as well as awareness programs, each and every year student is selected to serve like a liaison stuck between the law implementing agencies and the Student Government Association (Safety at Florida State, 2008). Integrated Risk Management Plan Integrated Risk Management Plan (IRMP) is a procedure by which people evaluate risk to the life and also property (Strathclyde Fire & Rescue, n.d.). The Integrated Risk Management Plan (IRMP) is a document which summarizes how a fire as well as rescue service proposes to change services as it serves the community. This focuses ahead of what requires being prepared to reduce the risk to the life and also how to formulate the best utilization of resources. All fire & rescue authorities are required to create an IRMP by the government. In the year of 2005, government settled that the rescue team could produce a three year undulating plan which permits them to appear at more multifaceted matters for a broad range of actions. Moving to three years plan has also permitted them to mutually bring their three year plans to resolve the concerns like finance, asset management as well as how they develop their workforce (Kent Fire and Rescue Service, n.d.). In the period of 2008-11, a huge number of components will be united to create an articulate performance as well as planning framework for achieving and facilitating the Lancashire Fire and Rescue Service’s objectives (Lancashire Fire and Rescue Service, n.d.). In the time period of 2008-2011, the Risk Management Plan (RMP) is expected to change the existing integrated plan of risk management. The RMP begins their broad purposes for next three years as well as includes particular targets against every vital performance that gauges for three-year time. Every year, this rescue team will refresh and review the RMP to make sure that the information remains pertinent and also that any fresh pressure or up - coming issues are totally understood and also proper actions are planned accordingly (Lancashire Fire and Rescue Service, n.d.). There is no doubt that their Community Safety approach is trying to reduce the risk. Encircling every features of risk reduction procedure from analysis to delivery, the strategy elaborates in normal terms the concept of protection, prevention as well as emergency response. This was first published in the year of 2007 and was also revised in the year of 2007, soon after the publication of the first edition. The revised edition refreshed the strategy and also re-issued to line up with 2008-11 Risk Management Plan timeframe (Lancashire Fire and Rescue Service, n.d.). In this time period, near about £ 200 million is expected to be spend on rescue and fire service in Lancashire. The Medium Term Financial strategy for the 2008-11 makes sure that cost is totally considered and also that value is provided. In the same way, value of their main assets i.e. vehicles and buildings exceeds £40 million as well as a frequent refurbishment and replacement procedures is essential to make sure that they in good shape for their purpose. The asset management strategies for the plan also cover the same time period. It allows them to precedence demand and efficiently co-ordinate actions in much broader sense (Lancashire Fire and Rescue Service, n.d.). In Oxford, there are twenty four fire stations. All of these fire stations, offer safety advise, emergency response and education, and also together with their support division they try hard to: Secure safer community gives efficiency Money value Select good deliver service Provide efficient service delivery by partnerships The Integrated Risk Management Plan (IRMP) is the responsibility of fire fighting authority as well as county council’s Fire and Rescue Service. This is both a measurement and also strategic equipment to guide and aware the group of people of possible consequences of acknowledged risks which threaten the people and to inform them how they have it in mind to reduce as well as control those risks through using traditional prevention as well as intrusion strategies. This makes sure that exact resources are in the exact place at right time, facilitated firefighters to react to the emergencies in flexible as well as effective way (Oxfordshire County Council Fire and Rescue Service, n.d.). The IRMP process is one of the basic elements of corporate planning procedure which support fire and rescue actions with strategic precedence of Government, Communities and Local Government (CLG) and also domestic fire authority – Oxfordshire County Council. Included in IRMP procedure are annual action strategies that identify targeted projects which will help to provide the long term plan of fire authority. They cover the entire domain of fire & rescue operations ranging from training, procedures as well as enforcements to partnerships, specialist projects along with procurement. The fire authority will discuss with stakeholders at different levels for response before taking the plan forward in the succeeding years (Oxfordshire County Council Fire and Rescue Service, n.d.). Conclusion The groundwork attempts to portray a standard assessment framework for quality of the risk management revelation and is based on one of the functional approaches as well as is stranded on five normal propositions. The framework is preface and also can be extensive to other significant risk factors like liquidity and also operational risks like the distinct measurement process and can be broadly used. Also, the functional process for evaluating the risk management revelation should be expanded to financial corporations. Last but not the least it can be said that the risk management is a fresh as well as an evolving area which is far-off from offering ordered and also combined solutions to problems like financial as well as non-financial risk aggregations, risk monitoring, and also risk-based capital allotments. It is evident that the professional community is now struggling with the definition of sound ‘international’ risk management policy, consisting its underlying values and value - additions as well as its’ evaluation by the market participants. So, this is a duty for every health and rescue service agency and professional to reduce and lessen the damages caused by the incidents of fire and also other disaster incidents. References Kent Fire and Rescue Service, No Date. Making Kent safer. [Online] Available at: http://www.kent.firek.org/about_us/plans,_policies__performance/risk_management_plan.aspx [Accessed June 2, 2010]. Lancashire Fire and Rescue Service, No Date. Risk Management Plan 2008-2011. Massachusetts Institute of Technology, February 1999. The Three P’s of Total Risk Management. [Online] Available at: http://web.mit.edu/alo/www/Papers/faj2.pdf [Accessed June 2, 2010]. Mount Sinai School of Medicine, No Date. [Online] Available at: http://www.mssm.edu/research/resources/environmental-health-and-safety-offices/offices [Accessed June 2, 2010]. Oxfordshire County Council Fire and Rescue Service, No Date. Integrated Risk Management Plan - 2008-2013. Rice University, 2003. [Online] Available at: http://riskmanagement.rice.edu/about.cfm [Accessed June 2, 2010]. Risk Assessment Working Group Educause, No Date. [Online] Available at: http://net.educause.edu/ir/library/pdf/CSD4380.pdf [Accessed June 2, 2010]. Safety at Florida State, 2008, Education, Awareness & Prevention Seminole Safety & Fire Guide [Online] Available at:http://docs.google.com/viewer?a=v&q=cache:JPfbShFWaqQJ:www.police.fsu.edu/content/download/7601/50209+why+Fire+%26+Rescue+Services+Act+2004+act+places+%E2%80%98prevention%E2%80%99+at+the+core+of+all+Fire+%26+Rescue+activities+site:edu&hl=en&gl=in&pid=bl&srcid=ADGEEShNPI_zukE8FCRyy2Mcr6zElhYK5cTzJP-LDDOidZlr2Fj4Kc7ILt6ATCb_VFdPePVICAjsa6-_gOnh0kp47xS8Fa3TtY9oSSKebOEwp5e9FlmSQRT4_pcQmAlRe51bcw0e-V7x&sig=AHIEtbQwXYlgqg69VVQO5mX7MF8s7bvQEw [Accessed June 2, 2010]. Strathclyde Fire& Rescue, No Date. Integrated Risk Management Plan 2010-2013. [Online] Available at:http://www.strathclydefire.org/perform/irmp.asp [Accessed June 2, 2010]. Wayne State University, No Date. Using Wireless Sensor Networks for Fire Rescue Applications [Online] Available at: http://www.cs.wayne.edu/~kewei/firefight.pdf [Accessed June 2, 2010]. Read More