Risk Management Trends and Developments
Prepare a response in which you examine at least three new trends and developments in risk management. Additionally, examine future challenges to risk management strategies. Be sure to address the following:
1. Summarize each trend, development, and challenge
2. Discuss the significance of each (pros and cons)
3. Discuss the implications of each in the business environment
... be avoided. In other instances, control measures can be used to lessen the risk and the potential loss.
Determining what tools to use in loss and finance control is a very important part of the risk management process. This is usually determined by a team of people within a company and can include programs such as employee safety or communication plans to lessen risk. Other tools that are often used are insurance plans, fire prevention plans and internal risk funds. Once the above steps have been taken in the process it is important for a risk management team to evaluate the success of the program. A company's exposure to risk is constantly changing and the plan needs to be adjusted on a continual basis to include the possible new risks.
With technology, innovations and regulations changing drastically with each passing year, there are new emerging trends in risk management that were not considered in the past. One of these emerging trends is the issue of Internet abuse and misuse on the job. Employees abusing Internet privileges has become a growing concern among corporations, as seventy percent of companies provide Internet access to more than half of their employees. According to a survey done by Websense, out of 224 corporations surveyed, 64% of the companies have disciplined, and more than 30% have terminated employees for inappropriate use of the Internet (Websense, 2000). There are a number of reasons why Internet abuse on the job has become a growing issue. The first is loss of productivity. Billions of dollars are lost annually due to lack of productivity because of Internet usage. Employees that are surfing the Web, online shopping and reading personal emails are costing their employers lost revenue due to their habits. Along with the loss of productivity, there are various legal risks to the company with the illegal downloading of copyrighted material, pirated software, and child pornography. When these items are downloaded they place the employers at a legal risk. There is also a security risk of viruses getting onto the company's servers which could ...