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

endangerment denomination is an underdeveloped art Discuss and include an overview of attempt identification aids and techniques in yo - Essay suitRisk attention is the concept that allows the management to look after upcoming uncertainties like that of high inflation, excitability of market, recession, change in market demand, competitors, change in regulations, etc. Therefore it becomes a responsibility of the management to analyze and identify such dangers. Otherwise, they may lead to financial turmoil and create issues like fluidity or even bankruptcy (Georges, 2013). Under the financial markets where uncertainties are high and investors expect to receive full(a) returns, a diversified portfolio is maintained by the financial institutions. This is done in order to minimize the mental picture to the take chances by making investments in both equity funds and fixed deposits. It can as well be said that risk management is the mitigation of the uncertainties, hence, allowi ng 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 frame. It is often seen that entities face issues in locating and identifying the risks that may hamper their project or investment. Risk management is the two-step process. ... Other than few general terms of risk, they find it unvoiced to locate the barriers that might hamper the success of their project or entity as a whole. Like risk management, risk identification is also a complete process and distinguishable methods or techniques can be used for successful identification (H. & J., 1999). With proper management, it is probable that most of the associated risks can be identified. Before banter of the risk identification techniques or methods it is important to discuss its purpose, scope and process. R isk identification process Risk identification is a deliberate and a systematic process to identify and document the potential refer 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 briefly 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 set of different sources that would be used to gather the information. It is important that set of risk identification tools and techniques is used Identified risks must(prenominal) be documented and the probability of occurrence of such event evaluated in order to analyze the resources that would be