How To Go About Producing Risk Management Solutions

Any leader of an organization knows that he has two choices when trying to produce sound
risk management solutions: one, he can assign people within his organization to join forces
to come up with these risk management solutions by themselves; or he can assign the job to
specialists in producing risk management solutions.

How does one know which is the better option? Cost is often the first thing that comes to
mind – meaning what is the cost of each option? Is it more cost-effective to make risk
management an additional function of each division within the organization, or to simply
let an expert take over as a consultant? The second factor to take into consideration is
the time constraints that will dictate when the risk management solutions should be
produced for evaluation and then implementation. Another factor is the feasibility of using
the risk management solutions that each group of people (the organization leaders vs. the
risk management specialists) can come up with. Here the organization top honcho might want
to use both parties and then compare the results that each group can come up with.

It is really sometimes a disturbing puzzle coming up with sound risk management solutions,
simply because so many factors have cropped up recently that make predicting the nature of
risks and their impact a complex problem. One problem that organizations now have to face
is the effects of global climate change. Another issue we must contend with is threats from
extremists and terrorists who use violence as their means of negotiation. Environmental
disasters such as the Asian wave of tsunamis and other changes in our environment (much of
them due to the climate change we mentioned) are also significant risks that we are being
taught to prepare for.

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