Framing risk identification: a managerial perspective

What is it about?

This is a conceptual paper that aims to (1) discuss how risk identification outcomes differ between Risk Management 1 (RM1) and Risk Management 2 (RM2) and (2) describe the potential consequences of these different outcomes on the organization at different management levels. This research challenges the traditional thinking that risk management is confined to the financial and operational aspects of the organization. It presents risk management as a strategic and value-adding process that contributes to organizational safety and which should be considered as an inseparable part of corporate strategy.

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Photo by Sasun Bughdaryan on Unsplash

Photo by Sasun Bughdaryan on Unsplash

Why is it important?

Senior executives need to be aware of the form of risk management adopted, and whether they follow RM1 or RM2 in their organizations. This is significant as it describes how different risk management arrangements may produce different risk identification outcomes. Risk management has commonly been presented as a “process” in the literature but less often discussed as a corporate philosophy that can influence other areas of business.

Perspectives