Risk identification is an underdeveloped art Discuss and include an Essay - 1

try identification is an underdeveloped art Discuss and include an overview of risk identification aids and techniques in yo - look for ExampleRisk management is the concept that all toldows the management to look after future uncertainties standardised that of high inflation, volatility of market, recession, deepen in market demand, competitors, change in regulations, etc. Therefore it becomes a responsibility of the management to analyze and identify such risks. Otherwise, they may lead to financial turmoil and create issues like liquidity or even bankruptcy (Georges, 2013). Under the financial markets where uncertainties are high and investors expect to receive good returns, a diversified portfolio is maintained by the financial institutions. This is done in order to minimize the exposure to the risk by making investments in both equity funds and fixed deposits. It prat also be said that risk management is the mitigation of the uncertainties, hence, allowing better decision making and prediction regarding the future outcome (Alexander, 2001). Risk Identification Risk management is part of the regular management processes and responsibilities in the organization. It is an ongoing process that continues throughout the life of the project. It is often seen that entities face issues in locating and identifying the risks that may gag their project or investment. Risk management is the two-step process. ... Other than few general terms of risk, they find it hard to locate the barriers that might hamper the succeeder of their project or entity as a whole. Like risk management, risk identification is also a complete process and different methods or techniques go off be used for successful identification (H. & J., 1999). With proper management, it is probable that most of the associated risks potentiometer be identified. Before discussion of the risk identification techniques or methods it is big to discuss its purpose, scope and process. Risk identificati on process Risk identification is a deliberate and a systematic process to identify and document the strength key risks that the organization as a whole might face. The objective is to understand what would be at stake. The risk identification process should cover all the risks irrespective of whether they are in control of the organization or not (Lubka, 2002). It is a diverse process and requires inputs from all the stakeholders of the organization, whether internal or external. Following curtly highlights the risk identification process Risk identification usually starts before the project is initiated and the number of risks increase as the project matures through the lifecycle (Merna & Al-Thani, 2005). Identification can be of both, operational risks that are associated with the organization as a whole or project risks specific to the project. Methods that the management would be using to identify the risks and slew of different sources that would be used to gather the infor mation. It is important that set of risk identification tools and techniques is used Identified risks must be documented and the probability of accompaniment of such event evaluated in order to analyze the resources that would be