Risk Management

Risk Management

Dianna Kirkland

Risk Management

The purpose of risk management is to analyze, measure, and asses exposure to risk and determining the most suitable strategy for management. (WebFinance, 1997-2007, p. 1). Basically, risk analysis is also preparing for every possible situation which could cost the organization, individuals, and society financially, mentally, physically, etc... The risk management process is necessary in criminal justice and private security organizations now more than ever. Effective risk management involves early and aggressive risk identification through identifying risk, analyzing risk, defining an effective risk strategy, and dealing with identified risk through the implementation of plans as soon as possible. The process of risk management also includes establishing categories for risk, risk likelihood, and the consequences of risk. (GRMPR) Although criminal justice organizations and private security organizations provide similar services the roles risk management plays in each varies a bit.

Risk management within the security of organizations

The September 11th incident has escalated the need for risk management everywhere. The security sections of organizations are responsible for identifying and analyzing risk, treating risk, and monitoring and reviewing risk for personal, property, and liability. The risk in any organization involves people, material assets, and legalities which affect people and materials. The security department must protect each category of risk. In order to do that they must, identify the assets in need of being protected, which risks or perils which affect the involved assets, and determine if the risk or how often or likely the risk will occur, and guestimate the impact of the risk. The impact is usually considered in dollar value in most businesses. (Risk Analyses and Security Survey, 2002, p. 1).

The goals and roles of risk management in security departments are also to provide management and employees with credible information which allows prevention of risky events or perils. Risk management after completion but is an ongoing performance, displays current security and risks, highlights areas (vulnerabilities) where more security is needed, helps assemble some of the facts needed for the development of countermeasures, and increases security awareness. (Risk Analyses and Security Survey, 2002, p 2-4)

When thinking of security departments within organizations, the objects of the threats which come to mind are computer security, protecting employees, sporting events, concerts, vehicles, property, and other miscellaneous threats. The security department explores every possible risk, its affect on the company, the cost involved, and prevention.

Risk management within criminal justice

Although the goals and roles of risk management are basically the same in security and criminal justice organizations there are a few variances. Risk management in criminal justice involves higher risk which focuses more on the loss of life than on property. Risk management analyzes all forms of risk: personal, property, and liability but the stakes are a bit higher. The principle objective of risk management in criminal justice is to prevent