The Social and Cultural Significance of Risk as a Concept - Coursework Example

Risks within the Energy Sector The Social and Cultural Significance of Risk as a Concept Risks are considered to be setbacks in any process or development. Therefore, when a risk occurs, it has negative effects on a project. As such, the project manager has to develop various strategies that could be used in securing and maintaining project stability. Though there are many risks, their effects vary from mild losses to massive losses which would adversely affect a company. Therefore, a project manager should have strategic influences that are used in reducing the effects of a risk at any time of occurrence. For example, generating better ways that could be used to avert any occurrence of risks could be plausible. This reduces the amount of investment that could be wasted in case of a risk occurring. As such, this ploughs more resources into the project, increasing its reliability in the generation of services and products. The energy sector is faced with a wide range of problems, which are the main cause of redundant performance in the sector. Since time immemorial, the energy sector has been generating better ways to deal with risks that are constantly affecting the sector. In many cases, occurrence of risks shakes the whole sector, making it record dismal results. To reduce such an instance, most of the stakeholders in the energy sector have to employ strategists and consultants to reduce the effects of risks that could occur. With much research and consultation, the researchers and developers try to make a better way of attending to risks. Similarly, they have to structure better ways of dealing with a risk, especially when it occurs in a firm. Therefore, there are several social and cultural significances that are achieved in relation to risks. First, the risk factor makes slots for employment. Many people are employed in the energy sector to help in reducing the risks. They rely on other factors that could be used in reducing the destruction that emanates from the risks. Therefore, it is prudent that companies and other firms that need to reduce risks factors from affecting their firms have to create employment (Bacher 13-17). Therefore, it is a social benefit as some people get employment in trying to reduce the effects of risks in a firm. Similarly, it makes the energy sector a creative sector. This is when the people that are employed to deal with risks have to perform various duties. This is by indulging other stakeholders and workers in the whole process. For example, during educative processes in a firm, other workers are duly informed. Since the energy sector embraces technology, the other workers are taught on the developing and emergent technology. As such, it makes an informative environment, where all the workers are informed and made to experience emergent technology. In addition to this, a firm’s preparedness shows that the firm also takes such measures to other risks that could occur. In this current world, risks are increasing, depending on each firm and the daily events. Therefore, a firm could have a better approach when it uses the basic concept of preparedness in all aspects that affect a firm. This could help a big deal in stabilizing the performance of a firm. Specific Social Scientific Perspectives on Risk. There are a number of social and scientific perspectives that are directed towards the energy sector. Each of these perspectives has a different view since each of the developers has a basing point. These basic points are unique in a way or another, which brings the difference in view of the energy sector. Each of the developers in these perspectives has their arguments and supports it with various supporting points. Though most of these perspectives are unique, they also have some points which express a similarity. These similarities are used to show that the risk affects the generation in the world in the same way, though they are from different perspectives. For example, the change in climate affects all the generations. Though the scientific perspectives are explained in different scenarios, the result is the same. The whole world is affected in the same way, though thee explanation from different people differs. Therefore, it is a prudent idea to focus on the different perspectives that are used in explaining the risk factor and how they should be controlled. The first perspective that is used in the control of risks is reflected towards managing and planning. This is the indulgence of scientifically proven methods that are used to contain risks. For example, a firm has to indulge planning for the future to ensure the firm is running in a much better way. Planning in broader terms is explained as the need to focus on the future and how a firm is going to develop. Since the energy sector has a number of risks which could occur, planning for strategies that could contain these risks is inevitable. For example, a firm should plan on how it can contain various issues that have been affecting the energy industry. Stipulation of various ways that could avoid occurrence of such situation is a positive occurrence. This is due to the stability that will be accrued by the use of risk containing methods. Similarly, the generation of these strategies shows a firm that is well prepared to deal with the future. Since the future is completely unpredictable, having such strategies makes running of the firm an easy task. This should be followed with constant upgrading of the scientific systems that are used in risk management. For example, the weather forecasts and other equipment have been changing with changing times. Therefore, a firm should achieve the same by constant upgrading of such systems. This will assist in achieving the best protection when a risk threatens. When comparing the different social scientific perspectives that are used in risk management in the energy sector, it is evidently seen that they both involve planning for the future. However, the plans of the energy sector are divided into two parts. The two are explained by the near future which represents long term projections and the present future which is used to represent the short terms projections. In the long term projections, the risk managers have to plan on making a long term improvement in the energy sector. This is a vital sector that should be developing over the years. Therefore, generating better ways in future is a perspective that will increase the performance of this sector. These are plans that take an arguably long term to mature. On the other hand, the energy sector has to have short term risk management plans. These are plans that are used to manage risks that occur on a daily basis. Similarly, these plans are put in place to manage risks that are frequently occurring in the energy sector. Therefore, thee perspectives help in making a stable achievement in the firm. This affects both the social aspects and the scientific aspects in a firm. The social and scientific perspective in management directs its focus to major infrastructural developments and the corporate social responsibility. In these two aspects, a firm or producer is guaranteed to make a positive approach especially in energy sector. For example, reflecting on major developments of infrastructure gives a positive record. This is due to the ease in transport especially when moving from place to another and transporting energy. Therefore, infrastructure is considered a scientific modification that could be used in the energy sector to make an impact on provision of energy. For example, when there is mobility, it is easier to move products from one place to another. This makes work a lot easier especially when a firm is faced with scarcity of labour. Though the labour supply could be low, the firm still produces the products to the demanding market. Similarly, it will increase the efficiency and effectiveness of the firm where the production is optimized. Another social scientific perspective that is derived in the energy sector is directed towards the economic shocks in the energy sector. All sectors in an economy that rely on demand and supply in the market are adversely affected when there are major shocks in the supply and demand. These shocks could either be short term or long term, depending on the prevailing market conditions. When the market conditions are adverse, the energy sector will be affected for a long time. This could lead to dismal performance that deteriorates with change in the conditions. As such, the energy sector will record a trough in its performance when such conditions happen. However, the energy sector is at times affected with mild economic shocks. These are occasional shocks that affect the sector in a short term. Therefore, a firm that is used to such occasional shocks has developed ways of acting to such a condition. It uses various u strategies that could be used to control the risks. There are several comparisons that can be derived from the two perspectives that have been mentioned above. First, the management has to focus on the future, and plan for risks that could occur. This involves employment of researchers and risk evaluators. These evaluators take care of the situation and manage the risk in a much better way. In many cases, planning for such risks reduces the atrocities that are directed to the firm. For example, when the risk planners are informed of a risk that is in the offing, it is easier to develop stringent measures that could help reduce the effects (Bacher 27-31) . In such a manner, they will relieve the firm of extra expenses that are directed towards solving the problems. Therefore, it is easy to control risks in such a perspective. However, from the economical shock perspective, it is not easy to avoid risks that occur from economic shocks in the market. For example, the supply and demand of energy is dependent on various factors that are not controlled by a single firm. Similarly, some of these factors are external factors which are not controlled in the market, especially by the firms that are affected. For example, the pricing of the energy in a market could be an external force that is not changed by a firm. This will lead to dismal performance when the economic shocks occur. Though a firm could have the financial muscle to control these, it is not an easy task. The Perspectives with an Example Drawn From the Energy Sector. There are many examples that could be derived from these perspectives that have been mentioned. The energy sector is a vast sector that is affected by many obstacles. These are some of the risks that affect the success of the industry. Therefore, the industry has to ensure it has apt management that will assist in reduction of these effects. For example, the management could employ planners and managers that are solely employed to assist in risk management. However, some of these planners and managers do not record adorable results from the situation. This is due to the adverse condition, while some of the risk factors are not controlled by individual firms (Mullerat and Brennan 205-231). For example, the energy sector is vast and encourages production from different sources. This has been directed towards the production of energy by use of renewable energy sources. For example, there are many upcoming producers that are banking on renewable energy sources. These emergent energy production techniques are a threat to the existing energy production schemes that are using non-renewable sources of energy. When the supply in the market exceeds the demand for the same goods in a market, it is obvious that there is no balance of trade. As such, there should be an intervention to make the situation balanced. This is the same scenario that happens in the energy sector. There are emergent producers that are focusing on production of energy. These are competitors that are focusing on clinching on a niche market for their energy. Therefore, they will have to struggle to attain a market for their products. With such activities, it is evident that some producers and firms will lose their market to the new energy producers. When this occurs, it is evident that the economic shocks, which is a risk in the energy sector has occurred. To contain such a risk, the firm has to indulge various control mechanisms, which would affect the stability and performance of the firm. When there is a deteriorating market demand, some firms are adversely affected. This leads to a decision that involves desperate actions that are deemed to make an improvement in the performance. For example, when the supply is saturated in the market, the demand diminishes, depending on the supremacy of energy producer. Therefore, the customers in the market will have to focus on different aspects before purchasing energy. This includes pricing, stability, efficiency and reliance. Therefore, an energy source that has all of these factors will be demanded in the market. To control such a situation, some industries and firms decide to make a different approach. A popular approach in such a situation is the pricing approach. When the demand is high, the firms only have to cut their pricing on their goods. In such a position, cutting the pricing gives the market an urge to continue using the product, which improves on the demand for the same. As such, a firm could develop its market by having more customers. This in the end ensures the firm is making a better approach to the market by giving a pricing incentive. Though the firm could be recording an increase in the demand for its products, it still could be making losses. This is due to the reduction of the pricing on the products that are sold in the market. This gives a negative record to a firm as it has to make creative moves in garnering a positive accrual in business. In the same aspects, some government conditions that are incepted by governing bodies could affect a firm when a risk occurs. For example, government conditions could include price ceiling, which gives restrictions on the prices of a commodity. This could affect the energy sector, especially when the demand is high. The price can only be escalated to the limits that have been put by the government. Therefore, a firm is not in a position to benefit more as the pricing is decided by the governing bodies. This makes increases the risks that are involved in the energy sector, as the firms do not have control over the pricing. Works Cited Bacher, Christian. Corporate Social Responsibility. GRIN Verlag, 2007. Print. Mullerat, Ramón & Brennan, Daniel. Corporate Social Responsibility: The Corporate Governance of the 21st Century. Kluwer Law International, 2011. Print. Read More