Culture and Human Resource Implications in Risk Management

Question: Discuss about the Culture and Human Resource Implications in Risk Management. Answer: Introduction: The Bowtie method is a process of risk analysis that helps to visualise the risk within just one diagram. This diagram is formed like a bow-tie, where a clear differentiation between proactive and reactive risk management. The diagram of the bowtie risk analysis model is given below (Ittner and Oyon 2014). The beginning of any Bowtie is the Hazard. A Hazard is something in, around or part of the association which can possibly bring about harm. Working with unsafe substances, driving an auto or putting away delicate information are for example risky parts of an association. The possibility of a Hazard is to discover the things that are a piece of your association and could have a negative effect if control over that viewpoint is lost. They ought to be defined as should be expected parts of the association (Lavastre, Gunasekaran and Spalanzani 2012). Whatever is left of the Bowtie is committed to how we keep that typical yet risky viewpoint from transforming into something undesirable. Through the use of the Bowtie risk analysis model, the organizational risks can be managed in the above shown way. The model helps to identify the top most risks or hazards in the area of the organizational structure and management can be identified at a glance. Rising star is an organization I am familiar with is facing many problems due to the lack of proper HRM administration. The organization can use the Bowtie risk analysis model for analyzing the risks for human resource management of the organization. The model will help the organization to understand the consequences of the improper management and the escalation factors which refers to the major threats to the human resource management. They will be able to avoid the consequences by applying proper control measures to the consequences and the escalation factors. Organizational culture and human resource implications in Risk Management The organizational culture and human resource management have a high impact on the risk regarding the operations of an organization. The selection of the employees is the main operation of the human resource management of an organization. This procedure is also dependent on the organizational culture. The management of the human resource of an organization is associated with risks. If the selection of the employees is not done properly, then the organization may face huge difficulties in the management of the business operations. Therefore, the recruitment and selection process of the organization should be done with great care. The recruitment and selection should be done with focus in the proper area of specialization (Ittner and Oyon 2014). Not only the recruitment and selection process, the job allocation is also an important activity of the human resource management process. This task needs to be also done with the high level of focus in the area of the specialization and the capabilities of the employees (Hisrich and Ramadani 2016). If the job allocation is done properly, then the rate of employee satisfaction will be increased and the risk of the organization can be reduced. Risk Analysis Techniques: There are several methods of analyzing the risks associated with the operations of the organizations. Three major strategies of the risk analysis are discussed in the section below: Brainstorming: This method is used for the extensively formative project plans and to get the way of proper management of the projects. In this process, the risk factors are identified and analyzed with the help of the critical thinking of the stakeholders. It is a basic yet viable endeavour to individuals thinks innovatively in a gathering setting without feeling restrained or being censured by others. In this method, many alternative approaches for minimizing one risk can be found. The superior one is used as per the choice of majority. However, this procedure is not so efficient for all type of organizations. As per Peixoto et al. (2016), it is an efficient one for the organizations associated with the project development work. In case of traditional business organizations, this method becomes an problematic one for the risk management. Sensitivity Analysis: One of the other simple risk analysis methods is the sensitivity analysis. In this method, the value of a single variable changed to reflect the impact over the whole process. This method is mostly applied on the variables with the high level of impacts over the organizational operations. The decision making through this method is more realistic, though perhaps more complex (Hoffmann, Kiedrowicz and Stanik 2016). The main drawback of the method is the complexity. The determination of the high valued variables in the activity of the organizational risk assessment is quite hard task. Threat risk modelling: It is a basic procedure for secure web application advancement. It permits associations to decide the right controls and to deliver powerful countermeasures inside spending plan. The means of the model are appeared in the figure underneath: This is an effective procedure for the organizational risk management as it focuses on the whole scenario and assesses all type of possible risk factors (Lavastre, Gunasekaran and Spalanzani 2012). However, the iterative process may never stop if an organization thinks to mitigate all risk factors. References: Hisrich, R.D. and Ramadani, V., 2016.Effective Entrepreneurial Management: Strategy, Planning, Risk Management, and Organization. Springer. Hoffmann, R., Kiedrowicz, M. and Stanik, J., 2016. Risk management system as the basic paradigm of the information security management system in an organization. InMATEC Web of Conferences(Vol. 76, p. 04010). EDP Sciences. Ittner, C.D. and Oyon, D., 2014. The Internal Organization of Enterprise Risk Management.Available at SSRN 2486588. Lavastre, O., Gunasekaran, A. and Spalanzani, A., 2012. Supply chain risk management in French companies.Decision Support Systems,52(4), pp.828-838. Peixoto, J., Tereso, A., Fernandes, G. and Almeida, R., 2014. Project Risk Management Methodology: A Case Study of an Electric Energy Organization.Procedia technology,16, pp.1096-1105. Peixoto, J., Tereso, A., Fernandes, G. and Almeida, R., 2016. A Project Risk Management Methodology Developed for an Electrical Portuguese Organization.International Journal of Human Capital and Information Technology Professionals (IJHCITP),7(1), pp.1-19.