Risk Management - Essay Example

The conclusion part considers some individual views regarding risk management. Easy Jet is one of the leading budget airlines in Europe. Its operation is spread around 30 countries and serves its customers in more than 100 countries. Various business and popular vacation spots are included among these destination hubs. The organisation is mostly operated in the different destination hubs of Europe. Apart from this the organisation also has its operations in the North America and Middle East regions.

Easy Jet offers almost all its tickets through the online booking facilities. No complimentary meal is offered on board. This has helped the organisation to make their costs as low as possible. Easy Jet has a dynamic fleet of 175 Boeing Jets and Airbuses (Hoovers, 2010). Starting in the 1995, the organisation has been able to mark its presence in the aviation industry. Risks are inherent to a business activity. However, the organisation needs to take steps to mitigate the risks. There can be various kinds of risks including strategic, operational, financial and hazard risks.

Apart from these there can be certain other classifications of the inherent risks to a business, however those can broadly classified into the previously mentioned four categories. The risks, which the organisation is exposed to, can emerge from a number of factors which can either be external or internal to the organisation. The figure overleaf illustrates the key risks, influenced by the external and internal factors. Almost all of the financial risks including interest risks, foreign exchange and credit risks are externally market driven.

However financial risk like liquidity and cash flow risk is both driven by external and internal factors. Strategic risks as changes in intensity of the competition, customer base and external industry environment are externally driven. Risks arising out of the mergers and