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Risk Management in Organizations. Essay

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Risk management is one of the complex processes which demands effective planning and control, monitoring and effective communication techniques. Very often, effective communication is neglected by agencies in contingency planning. such disasters as 9/11, Hurricane Katrina and Virginia Tech proved that lack of compunction and interaction between the state and community led to negative consequences and threatened risk management initiatives.

During Hurricane Katrina, community was not informed about areas of risks and preservation of risks. Many citizens were at a loss and could not receive professional medial help and social support. The community did not know how to act in emergency situations and during evacuation process. During 9/11, lack of communication led to chaos and additional risks situations caused by panic and fear. The community was not able to support emergency preparation activities and avoid hazardous situations. As the most important, there was a failure in communication between the Federal Aviation Administration and Defense Department. “Poor communication meant the military mistakenly thought American Airlines Flight 11, which crashed into the north tower of the World Trade Center, was headed to Washington, and NMCC was not notified that United Airlines Flight 93, which crashed in Pennsylvania, was hijacked until almost 40 minutes after the FAA confirmed the hijacking” (Strohm, 2004). during the Virginia Tech massacre, police and state authorities were unable to prevent the second shooting which led to 32 deaths. After the first shooting, the University authorities supposed the problem was solved and did not cancel classes. The University failed to communicate with police and the federal authorities treating this accident as a private matter.

The three events prove that effective communication and understanding of potential risks are crucial for risk management planning. A strategic decision simply implies that specific communication alternatives must ultimately be selected. Just as alternatives were generated at each level in the organization, selection decisions, too, may be made at each level, consistent with the aims of top management. Effective communication between people is crucial because due to the intensity and immediacy of their feelings, distressed persons may lack understanding of these events and their significance. The sensitive explication of these feelings may lead to insight and understanding by the distressed other, and thereby contribute to the other gaining distance from and a perspective on his or her feelings. High-intensity conflicts seem to go through changes more rapidly. Once again, the crucial factor is the extent to which there is fundamental agreement on the nature of the relationship, particularly the rules for carrying out disasters (Crouhy et al 2004).

Many organization, agencies and state bodies lack resources and risks plans, knowledge and professional; skills to respond effectively and prevent disasters, support victims and their families. Only communication can help the community to reduce risk factors and isolate victims.. Public sector organizations are often the targets of changing political attitudes and economic shifts. These along with many other factors have given rise to public sector contingency planning (Crouhy et al 2004). The goal of acquiring information about others is frequently pursued along with other social goals and in many cases may be a precondition for the attainment of other goals as the procurement of information about others is crucial in retrieving or developing plans to reach social goals. One should not lose sight of the fact that such a focus ignores the complex goal and planning interactions that accrue from the simultaneous striving for multiple interaction goals. Sophisticated comforting strategies project a greater degree of involvement with distressed others and their problems.

References

  1. Crouhy, M. Mark, R., Galai, D. Risk Management. McGraw-Hill; 2004.
  2. Strohm, Ch. . Web.
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