Developing Accountability in Risk Management

Question :

 Developing Accountability in Risk Management: The British Columbia Lottery Corporation Case Study

Respond to the following questions

1. Sometimes risk workshops generate so many risks that it is not possible to assess all of them, whileon other occasions only a small number of risks are identified, and in-depth assessment is possible. What are the advantages and disadvantages of these two scenarios?

2. How do outcomes, causes, and risks differ, and what are the implications of confusing these?

3. Is the term inherent risk helpful? How could it help and/or hinder the assessment of risk?

4. What are the implications of moving from assessments of predefined sets of risks to usingtop-down objectives based on the balanced scorecard approach?

5. Contrast the advantages and disadvantages of using voting technology compared with other approaches such as those described in this case study

Answer :

Answer to Q1:

The Advantages of the two given scenario is that in the both the scenarios the business organization can assess the risk that it faces while running its business which will help the organization to prioritize its risk according to its necessity (Healthandsafetyhandbook.com.au, 2019).

Whereas, the disadvantage of the two given scenario is that some of the risks are not identified or are not been prioritized or the risks are so small that they are not being noticed properly which can cause big disaster for the company in future.

Answer to Q2:

The term ‘outcome’ means the final consequence of a plan whereas the term ‘causes’ means the various factors which leads to the final outcome or result and the term ‘risk’ means the potential threat. However, confusing the three will result in a disaster because risk is assessed on the basis of causes and this causes or reasons provide the final outcome regarding the identified risk. Therefore, confusing between the three will provide risk as unidentified.

Answer to Q3:

The term inherent risk is helpful because it helps in identifying the controls which are not negotiable. The inherent risk is very helpful in identifying the characteristics of the risk and can easily assess the worst case scenario upon the risk situation (Blog.protecht.com.au, 2019). Inherent risk assessment helps the management as well as the organization by providing information with regards to the risk factors which can cause disaster for the organization. 

Answer to Q4:

It has been found that the organizations which uses a balance scorecard approach gains competitive advantage over the organization which uses other formal approach to the management of performance. The balance scorecard approach helps in enhancing the quality of strategic planning, improving the communication strategy, improves the information process towards the management, bringing improvement in the reporting of the performance of the organization (Bernardmarr.com, 2019). However, if the balance scorecard approach is not implemented effectively and efficiently then the actual results or the accurate results cannot be realized. 

Answer to Q5:

The voting technology is one of the democratic and systematic approach to make any decision. In this majority of the voters wins and the decision that is resulted from the voting system is prevailed within the organization (Srdc.msstate.edu, 2019). However, the voting option can be limited and can lead to unsatisfactory choices of the option. 

Reference:

Bernardmarr.com (2019).The Benefits of a Balanced Scorecard. Retrieved 23 October 2019, from https://bernardmarr.com/default.asp?contentID=1478

Blog.protecht.com.au (2019).Inherent Risk – Is it useful?.  Retrieved 23 October 2019, from https://blog.protecht.com.au/inherent-risk-definition

Healthandsafetyhandbook.com.au (2019). 5 Benefits of Conducting Risk Assessments. Retrieved 23 October 2019, from https://www.healthandsafetyhandbook.com.au/5-benefits-of-conducting-risk-assessments/

Srdc.msstate.edu (2019). Retrieved 23 October 2019, from http://srdc.msstate.edu/readycommunity/files/coachingtools/coaching_decisionmethods.docx