Risk Management Plan (Essay Sample)

Risk management: The Case of the Big White Winter Canadian Rally Championship Students name Institutional affiliation Course name Instructor’s name Due date Risk management: The Case of The Big White Winter Canadian Rally Championship -219075100012500 Source: Mailloux masterclass at Lincoln electric tall pines rally in Canada during the 2021 Big White Winter Canadian Rally Championship in Kelowna, Japan. Abstract Risk management is a vital aspect of ensuring safety standards in any situation or condition. It entails understanding, analyzing, and addressing possible risks to ensure that the desired outcome in an organization is achieved without any inconvenience (Mata, 2020). This section discusses risk management by reviewing the purpose and goal of a loss control program. Key areas covered The following key topics are discussed in this section; risk identification, risk assessment, phases of risk management, loss control plan, financing of risk management, monitoring of risks, and safari rally sports event. Target audience This article is suitable for students enrolled in driving schools, automotive engineering students, mechanical engineering students, architecture learners, risk management courses, and other related fields. Objectives 1 To outline and explain the kind of losses involved in risk management. 2 To comprehend the entire procedure of assessing risks. 3 To discuss the various phases of the loss control program. 4 To develop a loss management program. Risk management Risk management refers to the process of finding out, analyzing, and mitigating uncertainties in places where a desirable outcome is anticipated. It is a systematic process that allows risks in events to be understood and proactively managed to optimize success by maximizing opportunities in the event where the risks would occur. Loss or risk management involves understanding the loss context, recognizing the risk, summing up the general ideas in loss control, and finally developing the control plan for the risk. Meaning of a risk right-20955000Future uncertainties leading to deviation in the value of an outcome in an event is what entails a risk. The uncertainty may be forecastable or unforecastable in that its chances of occurrence can be reduced (Ishii, 2021). The probability of risk occurrence is one of the considerations to be taken care of in risk management after which the severity or the extent to which the risk triggers damage is considered. A loss, therefore, sums up the chances of a hazardous loss occurring and the impact of the hazard. Risk assessment This is where the risk management specialists undertake desirable approaches to evaluating the expected risks in the entire event (Zio, 2018). This process involves a series of steps that ought to be followed systematically by those assessing the risk. Below is a flow chart outlining the steps followed in risk assessment. Risk context Managing risk can be sound when the surrounding conditions of the risk are considered. For example, taking note of the internal and the external building blocks of an event. This means that the loss control specialists will have to consider various aspects of the occasion at hand, for example, the kind of event, and time of occurrence. Exact location, those involved, that is, the stakeholders, and also the level of the event. All the above elements have a unique role to play to enable the development of a loss control program for any event. Taking an example of the level of the event, say community level, national level, or international level, the event management committee ought to take note of the structure of the event and the weight or technicality of its risks. The support team of the event to has to consider the level of support needed in an occasion before handing in their support. This implies that the support donated to an event at the community level differs from that given to an event at the international level. On the same note, the level of attention stakeholders should give to possible losses is different. It should be noted that understanding the context of the risk is vital especially for loss management specialists as this will help them develop the most reliable loss mitigation program. Risk recognition Identification of the risks employs the proficiency of experts who are well conversant with the subject matter of risk management. There are some cases in some events when the probability of risk occurrence is negligible. In such a case the proficiency of the experts may come up with a suitable assessment of possible losses (Lyubchich, 2020). It is not just a walk in the park to recognize losses in a scenario but it is a process that calls for maximum attention from all the experts and risk managers where they have to pull their skills together to help them make wiser judgments. Analysis and evaluation of risks Risk analysis and evaluation involve the development of an appropriate to of assessing risks according to their chances or likelihood of occurrence and the severity, that is, the extent to which the risk can cause damage to the surrounding. The degree to which the loss is severe can be measured in terms of the cost imposed on the management of the event in which the risk occurred. the severity of a loss can be categorized as Catastrophe, Major, Moderate, Minor or Insignificant (Mata, 2022). The table below provides a summary of the rating of risks based on the likelihood of occurrence and their impact. Table 1 Risk assessment matrix consequence likelihood Insignificant Minor Moderate Major Catastrophic 1 2 3 4 5 A(Almost certain) 5 M M H E E B(likely) 4 L M H E E C(possible) 3 L M H H E D(unlikely) 2 L L M H H E(rare) 1 L L M H H Notes. The determination of a risk rating is arranged by the likelihood of it happening, in the column, and by the extent of its consequence in the row. Rating Indicators: E = Extreme risk: urgent action needs to be taken, H = High risk: senior managers’ immediate attention needed, M = Moderate risk: control measures specified, L = Low risk: handle routine procedures and monitor regularly. Table 2 Categories of risk severity Catastrophic 5 May result in severe injury, disability or death, complete loss of the system, and major property or facility damage. The immediate stoppage of the event may be necessary. Major 4 May result in injury or temporary disability. May also cause an extensive system failure. Significant financial loss or negative publicity may be incurred. Moderate 3 May result in minor injury, illness, damage to property, and noticeable financial loss. May also cause minor system failure and negative publicity. Minor 2 May result in less than minor injuries or illnesses, and negligible cost increases that the project can easily absorb. Can be mitigated by imposing a minor change to the event such as an alteration of the event schedule or a change of venue. It may also result in minor damage to the system which can be considered normal wear and tear. Insignificant 1 It poses no threat to the safety or health of the audience or staff. It may present no financial costs or no change to the event schedule at all. Risk Control In any case, where risk management is carried out, the goal is always to cut down on the risk which is a critical goal of course. Nevertheless, there I always a protocol to be observed to attain the desired results or impact of the risk management plan. This implies that there must be an ordered series of steps that will be followed. These steps are being used to control risk at any level (Lan, 2020). The table below provides a summary of these steps. Table 3 Pecking order for risk control Eliminate Getting rid of the causative agent or source of the risk Substitute Involves replacing the cause of the risk with a safer one where possible Isolate Involves segregating the source of the loss from the event situation to reduce the severity of the loss Administer Executing a law or regulation that will tend to train or teach on how to be safe from the cause of the risk Personal protective equipment This involves bringing forth protective equipment that serves to offer protection against the source of risk depending on the appropriateness of the risk. After considering tables 1, 2, and 3 above, a risk management plan can therefore be drawn. The table below depicts a sample of an effective loss control plan. ID no Risk Risk Control Likelihood of occurrence The severity of the risk Risk Rating Control measures Personnel Responsible Notes/Remarks likelihood consequence A1 Heavy rain Indoor concert hall C 4 3 H Informing the attendees about the shift of venue Chris Sakwa Inform all the officials about the change of venue Financing of risk management Risk financing refers to the process of organizing the losses that are left behind after the techniques of risk management have been applied. The goal of risk financing is generally to ensure that the company, institution, or management committee has enough funds to sustain the running of the event or organization even after the risk has occurred (Zio, 2018). Two techniques can be used in risk financing. These are risk retention or risk transfer to an insurance company. Risk-retention This is where the risk is maintained by the management committee. Risks of this kind cannot be controlled by risk management techniques. The loss is not transferred to an insurance company of any other party. Risk retention can be done intentionally, unconsciously, or as a result of the ina...