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Litrature Review - Essay Example

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In most organizations or companies, risk assessment plays a pivotal role in decision-making procedures. To carry out this task, leaders must know certain benchmarks and procedures in order to have a full-grasp of the magnitude of risks that organizations might face…
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Download file to see previous pages The question is: How can these concepts be squarely applied in risk assessment Hiring qualified people, just like what Machiavelli opined, is among the practical skills generally associated with good leadership. As corroborated by Grint (1997), an effective leader invariably chooses competent associates and subordinates who can give straightforward and well thought-out recommendations in response to specific problems to carry out any undertaking regardless of their interests. This is where the significance of "risk managers" is realized and appreciated.
Evidently, leadership and risk assessment have an overt interplay which produces desirable results especially when applied in cases wherein business forecasting is crucial to a company's success. As a result, the essence of risk assessment in the overall success of an organization is not only valued but also highlighted. According to Slywotzky, A. and Drzik, J. (1995), effective leaders imbued with knowledge in risk management are needed so that failure can be foreseen, avoided, or addressed. As pointed out by leadership theorists, not all individuals can become ideal or effective leaders. As such, certain traits have been identified to find out who can carry out specific tasks in relation to risk assessment and risk management as a whole (Slywotzky, A. and Drzik, J. 1995).
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