Running head: MANAGING RISK-THE HUMAN FACTOR 1

Managing Risk-The Human Factor

Name

Institution
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Managing Risk-The Human Factor

Risk management plan is a necessary tool that is formulated to identify probable

risks that might experience while carrying out the project. The organization nonetheless should

contemplate including some of the risk for example product deficiencies. However, the concept

of human factor has not been regarded as an element of concern. Therefore, the organization

should consider adding human factors in the lists of the contingencies (Blaikie et. al., 2014).

International Organization for Standardization has indicated that human factor is among the

major fundamental elements of risk management and therefore it should be included in the

process of making a decision that concerns uncertainties of the company. Therefore, this paper

provides an examination of the effect of managing human factors in the future growth of the

organization.

Essentially, it is importance to identify the lists of all the probable incidents that

might occur, including those that are predicted to occur, the effect that would be caused if they

occur, and various techniques for reducing the effect, and also forecast strategies to mitigate the

occurrence of the event. Individuals are usually unpredictable (Calkin et. al., 2014). These

ventures of human elements take into deliberation two foremost hazards. They include enough

security with investment hazards. It is imperative that top management should consider to

reviewing business plan regularly and could take corrective actions in such a situation where

there are variances. The companies, however, have opted to make a $50 million dollars venture

and thus predict to securing market share rapidly faster than their competitors in the United

States of America (Blaikie et. al., 2014).

During the implementation of the project, the organization faces few short terms

challenges but then they actually utilized forecasting and project omission to prosper. However,
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top management is in charge of formulating risk oversight. The other concerns the financial

crisis that some companies were undergoing in trying to expands their market through which

they operate (Blaikie et. al., 2014). There were numerous challenges that the company faced

while trying to establish whether undertaking the risk evaluation on the activities that the

company had set in their plans. Moreover, the organization had a lot of worries that these actions

could result in disadvantageous losses hence making it difficult to properly analyze human

factors.

Essentially, the project is faced with a lot of risks as well as the complication for

the project. Therefore, there was a need for additional employees to be hired for getting energies

to acquire resources to supply clients accomplished outstanding to the development.

Additionally, industry and financial reserves remained indispensable in easing the growth

strategy (Sousa et. al., 2014). The company intends to raise its inventory through employing

more people so that they can meet the increasing nature of the business. The objectives of the

company were, however, to get on board more staff with vast skills and knowledge of practical

shrewdness besides competencies to cater for the growing rate of customers in the market.

The criteria that the company uses to gain venture into other market was tight

since they involved a lot of political and lobbying which requires a lot of efforts. The goal of the

organization was to secure customers who were ready and capable of dealing with both private

as well as government overall contractors through functional abilities to execute the tasks (Van

et. al., 2015).

Moreover, the organization was more keen on refining operational affiliations with sub-

contractors to support comprehensive settlement deliverables in numerous areas providing

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several problems. Most of the employees were also oriented and prepared psychologically with

regards to the kind of business that they were going to perform given availability of adequate

measures and methods of undertaking the tasks. This encompasses the conditions of being

flexible as well as avoiding numerous tasks which were initiated through the formulations of

some expectations while also carefully monitoring their determinations (Blaikie et. al., 2014).

Fundamentally, the organization should allow staff to modify from making prospect estimating

to performing the tasks since the traditional technique of undertaking business was varying and

also comprised the procedure engaged in creating such changes. It is also imperatively that there

should be a real association and honesty which is vital in facilitating the growth of the project.

Nevertheless, the organization opt to effectively identify proper measures of selecting contracts

in which the company intends to invest on them while at the same time obtain acquire

competitive employees, enter into a flexible contract, and select a good decision criteria to adopt

(Sousa et. al., 2014).

Notably, the organization obligated to communicating all the duties and

responsibilities of the employees to make them aware of the new developments. Moreover, the

process of monitoring risks gave top managers an opportunity to be able to regulate significant

risks in that correctly could be linked to all ventures (Blaikie et. al., 2014). The top managements

are the individual who is quite responsible for the determining those risks that face the new

potential market. The routine over which the managing risks could be organized was renowned

to be supplementary obvious, and therefore several approved the technique. Fundamentally, the

business necessitates that the staff hold meetings separately to deliberate on the abundant
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schemes that the group was executing, measuring and communication of the risk (Sousa et. al.,

2014).

Risk management plan is a useful measure for every organization so as to act as a guideline in

mitigating risks in the future (Sousa et. al., 2014). However, the process of evaluating the risks

should comprise of making them aware of all the parties of the organization through

communication. Furthermore, the top management is designated to have established a significant

effect on the achievement of growth. Therefore, they were responsible for employing,

developing and assigning the right individuals, creating effective risk management plan (Van et.

al., 2015). It is also essential to note that proper infrastructure was vital in making the project

success. The managing human factors possess various answers that would help in the

achievement of the project success.

In conclusion, managing of human aspects is an imperative practice that is castoff

by the business. It is fundament to establish the scope of any risk management in which the

group intended to define its geographical objectives. The evaluation of the risks of the company

also faces necessities to be spoken by a knowledgeable person. In addition, the usefulness of the

communication is ultimate for entirely the shareholders.

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REFERENCES

Blaikie, P., Cannon, T., Davis, I., & Wisner, B. (2014). At risk: natural hazards, people's

vulnerability, and disasters. Routledge.

Calkin, D. E., Cohen, J. D., Finney, M. A., & Thompson, M. P. (2014). How risk management

can prevent future wildfire disasters in the wildland-urban interface. Proceedings

of the National Academy of Sciences, 111(2), 746-751.

Sousa, V., Almeida, N. M., & Dias, L. A. (2014). Risk-based management of occupational safety

and health in the construction industry–Part 1: Background knowledge. Safety

Science, 66, 75-86.

Van Der Vegt, G. S., Essens, P., Wahlström, M., & George, G. (2015). Managing risk and

resilience. Academy of Management Journal, 58(4), 971-980.