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response to the following with 300 words APA style
The success of risk management depends on the correct identification of a risk, its impact and the formulation of a strategy that is appropriate towards its mitigation. The process of risk management allows companies to identify risks, the exact way the business will be impacted and thus come up with ways to mitigate such risks and any that are similar to such identified risks.
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Order Paper NowThere are various methods used in risk analysis, and categorization, the focus for this discussion is the FIRM approach and the PESTLE analysis. The former is aimed at addressing the strategic implications of risk. This means that the approach looks at risk in terms of its potential impact on the strategy of the firm, or a project. On the other hand, the PESTLE analysis examines risk in a broader sense and would be favorable in an elaborate environment with long-term goals. PESTLE is usually utilized alongside a SWOT analysis to give a clear picture of the threats and weaknesses of a business. This model is advantageous as it enables a business to think about future strategies and available opportunities (Hopkin, 2010).
References
Hopkin, P. (2010). Fundamentals of risk management: Understanding, evaluating, and implementing effective risk management. London: Kogan Page.
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