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Advantages of Risk Management Plan
A risk management pan is document that lays out the risks and what effect they could have if they occur and comes up with ways to mitigate the risks. To capture any new risks it is important that the plan be reviewed on a regular basis. There are several step that are taken during the risk management. Step one is to identify possible risk and its effect on the organization and then assess the risk. Acting on the risk is the fourth step and the last one is to examine and appraise the risk. The key components found in a risk management plan include defining the nature of the risk,coming up with assumptions ,breaking down the risk structure , check the probability of the risk , and understanding the costs impact of the risk and scheduling the plan and finally writing down the risk in order of impact. This document will outline the significance of a risk management plan for organizations.
Risk management plans help organizations see the risks that might not be so obvious. The risk management team will ensure that they conduct a thorough investigation of potential risks in an organization. This will enable them come up with all the possible risks even those that are not very obvious . This will help the organization deal with all the risks in a timely and effective manner saving the organization cost.
With good risk management plans an organization is able to protect itself from being sued. The organization may fail to possible lawsuits that face the organisations all the time from various sources. A thorough risk management plan will protect the organization from such lawsuits saving money and reputation of the organization.
Work hazards can be identified and recognized by the help of a risk management plan. As the organization is coming up with the risk management plan it is able to identify work place hazards. It is also able to come up with the control measures that deal with hazards before they occur. The organization is able to avoid accidents at the workplace and maintain a safe working environment.
Risk management plan will involve a risk analysis that will help the organisation create awareness of risks to their employees. All the employees are aware of the risk that could affect their work because of the plan. Employees are also trained on how to avoid risks by using the risk management plan. This ensure that employees know how to protect themselves from the risks.
The risk management plan will ensure the law is followed when setting the standards of managing risks. This will help the organization in ensuring it follows the law to the letter and void being sued. The business could be closed down as a result of failing to follow the law.

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