Unit 1: Factors of your own safety and risks
Life is full of risks, for example, the risk is involved in simple things like turning on the gas at home or when it comes to life-threatening medical emergency decisions. Risk plays an important role in the way we manage our economy, organization, or our family. The risk can be quite complex when it comes to household money; as for individuals or families, for example, moms and dads can win or lose large sums of money. The types of risks involved influence decisions about how to manage or invest money in stocks, bonds, or properties. When we face risks, the challenge is how well prepared are we to overcome the risks. Risk awareness may be limited, in which case there is a high probability that the risk will become a hazard leading to disastrous results. Successful companies make constant efforts to change or update their internal policies and administrative frameworks to allow possible risks in their business requirements. Some decisions that are likely to have been included in the risk component are rigid corporate governance requirements, human resources planning, succession planning, training and development, mergers and acquisitions, adaptation to different cultures, resignation or discontinuation of some existing products, outsourcing, development of new markets, etc. No matter how important a decision is made, strategic alignment is critical in business decision-making. New ideas should be implemented according to the business needs of a company. Introducing new ideas should involve all staff, especially during development decision-making and goal-setting processes. A well-run business is also well prepared and therefore can meet the challenges of modern dynamic business environments.
However, managing risk is quite challenging for the world, for the most part, it is unpredictable. Processes continually change and evolve in terms of available resources: technology, innovation, human resources, and time, to name a few. To adequately address imminent risk, it is important to collect as much objective information as possible for analysis to help manage and thus minimize risk.
The risk can be classified as voluntary and involuntary . This classification depends on how an individual or an organization judges the situation. For example, a person with the habit of smoking or drinking does not associate the habits as risky; however, the habit often becomes dangerous and can significantly affect a person’s quality of life. Involuntary risk places a person or organization in a state of ambiguity, where the people involved in the decision-making process have not been exposed to a particular circumstance or lack knowledge and awareness of the particular risk situation. The ability to deal with such risks is a crucial factor in determining successful outcomes regardless of the height of an individual or organization.
For some people, the ability to deal with risk seems to be built into their character, but to the rest of us, it appears to be the knowledge that can be acquired through training. To get the set of skills necessary to deal with risk, it is important to get out of the comfort zone and be willing to change, learn, develop new skills, or be challenged to manage risk. Risk management is a methodical approach that most could teach and learn.
- To ensure your personal protection recognize possible risk factors and vulnerabilities.
- Develop good corporate practices to strengthen employee health.