For any organization to maintain its well being, then risk management is very vital. Ideally, risk management guarantees the security of the organization spending and security control measures are observed keenly. For any organization to carry out risk management, appropriate and competent comprehension of the risks pertaining risks should be considered. That is; efficiency and effectiveness to observe the risks of the organization are essential. Taking into consideration the Justice and security organizations, there are myriad elements that are expected to cause operational constraints (Kolb, 2008). The performance of most justice and security organizations is assessed through its definite ability to manage the risks that could affect them. Precisely, Justice and security organizations are among the most important sectors within any nation. This is because they are expected to carry out a reinstatement role in the society, which is ideal for peaceful coexistence among people within the society. This essay aims at explaining what risk and risk management is, the best measures of planning, and the difficulties that exist in the management of Justice and Security organization.
First, the risk is defined as the uncertainty of financial trouncing, the variations between actual and anticipated results of any operational organization. In addition, it can be referred to as the probability that a loss may have occurred, or is probable of happening in the near future. Risks occur in three definite states which are personal, property and liability. Ideally, Justice and security organizations are required to carry out risk analysis, which is considered to be an essential tool of management. It is vital to note that most evaluation processes that are carried out in any organization, where the organizational standards are quantified. Ideally risks can be expressed in myriad ways, as long as; they combine the myriad hazards that could result to undesired results.
Planning for risk and identifying resources
Risk management is the process of identification, assessing and prioritizing of possible risks that can befall an organization. It is usually followed by the systematic coordination and application of available resources, to ensure that the probability of unfortunate events is minimized, monitored and controlled in the most economical way possible. There are different categories of risks that are associated with different types of organizations. This also applies to the Justice and Security organizations (Kolb, 2008). When planning for any risk, the financial incentives are considered critically for the purpose of assisting the management team to handle the possibility and the strategies that are instituted to ensure that the hazardous impact that may result is either minimized or even alleviated. In this case, the justice and organizations are responsible over legal matters. In this case, they need to identify the risks that face the justice departments.
Justice and security organizations carry out their planning and identification of risks, as well as, the resources like any other organization. First, the organization dates back on the risks that it has faced without prior knowledge on the possibility of it is happening. In that case, the organization’s management ought to list down the risks that are probable to happen to the organization. These risks are referred to as the identified risk elements. It is not compulsory that they are put in any stipulated order. Afterwards, professional probability allocation is done to each of these elements of risk (Gaines, 2011). This process of assignment of probability of risk is the one that gives the dimension to following to ensure that the management appropriates the best commentary on the level of risk. Ideally, there are high, medium, and lows risks. This categorical assignment of these risks is the core to the value of financial as well human resources allocated to the risk planning process. Risks are uncertain. This indicates that it is sometimes hard to avoid them. This is one of the reasons where minimization solutions are sought to prevent poor performance of justice and security organizations in their chores of maintaining legislation sanity.
How justice and security organizations manage risk
Justice and security organizations are among the most critical organizations in the society. Due to this fact, these forms of organizations develop a strategic and procedural strategy to ensure that the process of risk management is carried out successfully. After identifying and allocating the probabilities to each of the predictable risks, they are then ranked. Justice and security organizations sometimes handle very essential issues that require urgent attention. This means that after computation of the total risks from the summation of the elementary risks’ probability, the next steps that these organizations put into place include designing mitigation strategies to ensure that the risks do not affect the organization adversely. Mitigation strategies are essential in case the risks can be prevented from materializing (Gaines, 2011). If the risks are probable and they cannot be prevented from happening, contingency plans are instituted. They enable the organizations to withstand the impact or even reduce the impact of the risks. When the organizations carry out these functions, they analyze the effectiveness of these strategies and compute the most effective risks. This process of risk management enables justice and security organizations to identify the best measures of risk management in the long run.
Costs associated in managing risk.
Risk management goes hand in hand with its institutional costs. That is; risk management is not a free exercise. Costs that are usually expected in risk management are categorized into ongoing, one-off and occasional costs. Initially, there entry costs of risk management. These are the costs incurred in the process of establishing a risk management capacity. The initial costs are used for training, techniques installation and updating the tools used in risk management. That is, the staff should be trained on how to deal with justice and security oriented risk. In addition, they ought to develop tools that are helpful in the process of risk management. The second category of risks is the ongoing costs.
These organizations undergo these costs in a bid to preserve an effective organization risk-management capacity. In addition, they also found to make the risk management process to remain updated. They are essential since they enable the management team to maintain discipline and effectiveness in the organizational operations of risk management. Ideally, the refreshment of the risk management should be carried out after every 2-3 years. Finally, there are the managing costs on the risk management projects. These described costs are costs which are incurred in the brief process of assessing, as well as, addressing the risks. Assessment costs are the costs that are incurred in the process of implementing the risks process. Activities that are funded in this situation include the attendance and report risks. On the other hand, addressing risks are the risks incurred when executing the risk-response plan.
Consequences of failing to manage risk
Negative consequences follow failure to address any organizational risk in the justice and security organization. Ideally, this can lead to several negative impulses. First, failure to instill risk management strategies may lead to failure to deliver according to the expected societal expectations (Gaines, 2011). When risks are realized, negative impacts that are expected to face the management, as well as, the society at large are adverse and may measure up to irreparable extents. Secondly, there is a potential probability that the reputation of a particular justice and security organization is damaged. Positive reputation about law sectors is very essential. It is the backbone of their performance parameter. The social license that any performing organization gets is lost in case the risks affect the organizations to a situation where the organization may take time to regain stability. Poor risk management strategies may tempt the organizational framework to be altered in efforts by the organization to contain harsh post-risk conditions that are very adverse and beyond repair.
Benefits a properly performed risk analysis has for management and key stakeholders
Consequently, it is advisable that every justice and security organization put up a risk management strategy. Owing to the fact the organizations are meant to operate in the long run, proper risk management ensures that the organization maintains its positive reputation. Besides, the organization stand a better chance to deliver the expected outcome or a level quantified close the expected. When the organizations have institutionalized a risk management plan, improper disputes and claims by the stakeholders may be minimized (Gaines, 2011). Risk management is closely associated with a safe operational environment where the management and the stakeholders are assured of future prospects. That is; the operational and existence life period of this category of organization is guaranteed. Accordingly, when there is a regulatory engagement, the justice and security organizations are advised to maintain a single point liaison squad with an objective of coordinating the myriad critical activities within the organization.
Risk management is an essential managerial obligation of which the justice and security organizations are supposed to incorporate in their systems. Optimal performances by these organizations require that trained, as well as, the skilled practitioner to carry out risk management strategies. Ideally, for these firms to maintain their reputation, then they ought to ensure that the right framework is instituted considering the fact most of the risks that affect organizations can lead to closure. According to (Gaines, 2011), the operational life and quality of service rendered by organizations with reasonable risk management platform are quantifiable compared to those that ignore them. Ideally, it is fundamental to instill risk management strategies in any organization to fulfill the expectation of the stakeholders, as well as the management.
Gaines, L. K., & Kappeler, V. E. (2011). Policing in America. Newark, NJ: Lexis Nexis.
Kolb, R. W., & Sage Publications (2008). Encyclopedia of business ethics and society. Thousand Oaks: Sage Publications.
Organisation for Economic Co-operation and Development (2010). OECD Reviews of Risk Management Policies: Italy 2010: Review of the Italian National Civil Protection System. Paris: OECD Publishing.