Need for Risk in an Organization


Sustainable development is vital in a business environment. Reflectively, this concept defines the feasibility of a company and its solvency within a specified period of time. The term sustainability refers to the ability to survive a risk level while at the same time within profitability mode. In business environment, sustainability is affected by the forces in the market, decision science, corporate structure, and real financial management both in short and long term. Therefore, a business organization must put in place stringent measures and strategies aimed and monitoring risk modules within feasible levels in order to effectively manage its change strategies. This analytical treatise attempts to explicitly evaluate the need for a certain level of risk to positively impact an organization.

Risk taking in relation to organization’s mission, vision, core values, and strategic plan

Risk management elements are risk assessment and risk mitigation. Risk assessment allows the business management team to evaluate the likely risks as well as the sources of those risks in change management within the core values of an organization (Kouzes & Posner 2007). Risks are uncertain happenings in the organization that have an impact on the change management programs such as aligning the strategic plans to the missions of such an organization. Operational risk is regarded as the main risk in an organization’s line of business since its impact will directly determine the success of the core values of the organization.

Reflectively, there is a need for a certain level of operational risks in the change management matrix of an organization. Operational risks involve risks associated with processes, people, and technological elements which are part of the core values and missions of an organization. The human input is an essential requirement towards the entry planning and development phases in any organization. These phases form part of the operational risk to positive impact on stability of the organization culture. Notwithstanding, the diversification of the workforce, as the main mission of an organization, may ensure flexibility in the definition of the interdependent components of the organization that translate to the realization of anelastic business operation (Kouzes & Posner 2007).

Risk taking in relation to organizational development and change

The main purpose of Risk Management Plan (RMP) as part of the operational risk in any organization is to provide the organization with strategies, measures that permit organizations to consistently identify and manage their change strategies. The written RMP is important in ensuring that organizations comply with the numerous risk regulations stipulated by agencies that are responsible for governing safety and health at the workplace. Moreover, the RMP will also serve as a basis of the vital framework of the organization’s commitment to shared safety responsibilities among the administrators, employees, and other stakeholders to improve on the organization development (Sai-Global 2012).

In any organization, there is a requisite set of risk plans that are reviewed, produced, and updated to ensure continual safety of members. Effective Risk Management Systems (RMS) as a level of risk mitigation can be effectively used as a decisive tool in reducing the degree and severity of work-related risksat the individual level. Risk assessment basically involves taking into account the duration, frequency and nature of contact with the risk element.

Through risk control, an organization is able to take appropriate actions in order to eliminate health and safety risks in the workplace (Timans 2006). However, when the actiondoes not eliminate the risk, then it entails minimizing the risks as much as possible since eliminating a single element of risk does not eradicate any risks associated with that element.

The need for risk in organizational change management.
The need for risk in organizational change management.

The necessity of the risk level policy

  • Ensure the organization has an up-to-date policy on safety and change strategies.
  • Ensure that the content of the policy is made available to all stakeholders in the organization.
  • Establish clear reporting, investigation and resolution procedures.

Risk measurement standards and performance

  • Establish effective work standards that must be followed my all employees.
  • Ensure work environment safety.
  • Carry out comprehensive risk assessment and management.
  • Spell out contingency actions and procedures within the organization.

Risk assessment process

The operations risk must be managed is a systematic way. However, the system of management depends on the size and nature of the organization. The critical elements of an effective SMP are management commitment and employee involvement, workplace analysis, hazard prevention and control, training for employees, supervisors and managers. An effective SMP system must therefore include the evaluation procedure to help gauge its effectiveness and guide in the creation of measures to correct the flaws in the system (Sai-Global 2012).

Foresight is very crucial since it gives an organization rough perspective and an overview of the future concerning the expected and unexpected changes and challenges (Timans 2006). Therefore, the risk assessment criteria should carefully examine and evaluate the past risks and endeavor to adopt skills that will be relevant for future challenges and responsibilities of an organization. Besides, an organization should embrace the need for creation of an integrated structure to absorb company goals and those that favor business. In turn, this will give the organization various meanings with relation to its unique culture.


Kouzes, J. M. & Posner, B. Z. (2007). The leadership challenge. San Francisco, CA: Jossey-Bass.

Sai-Global. (2012). Risk management: Principles and guidelines. Web.

Timans, K. (2006). Risk assessment. New York: John Wiley and Sons.

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