Venue Risk Analysis and Notion of Risk †MyAssignmenthelp.com

Question: Discuss about the Venue Risk Analysis and Notion of Risk. Answer: Notion of Risk Risk can be defined as the potential of gaining or losing something. There are certain aspects or values which can be lost or gained due to an unforeseen event. These aspects include physical health, financial wealth, social status, or the emotional well-being of a person. The risk can occur due to a foreseen or unforeseen event. The risk can be defined as an interaction with the uncertainty. The uncertainty can be defined as an unpredictable, and uncontrollable outcome, whereas the risk is the consequence of the event due to uncertainty. Risk permeates the decision-making process of each person as it is an integral part of each individuals life, business outcomes and the society (McNeil, Frey, Embrechts, 2015). The risk identification and therisk management are an integral part of the decision-making process of an individual. However, there are different interpretations of the word in different circumstances. It can be critiqued that the notion of risk is inextricably linked with t he uncertainty. Certainty refers to an event wherein it is sure that some actions are going to happen or not. The imperfect predictability may occur in different situations. The uncertainty can cause emotional or physical anxiety which commonly occurs in uncertain and volatile situations. Most of the people avoid activities and approaches which are very risky (Chance, Brooks, 2015). However, if a person knows that a bad event is going to occur, it is not perceived as a risk. It is due to the fact that uncertainty is linked with the event of risk. A bad event will not be categorized as risk, if it does not have an uncertain element in it. It can be critiqued that although risk and uncertainty are quite similar to each other; however, there is a significant difference between both the terms. Risk is the combination of uncertainty as well as damage or some kind of loss. Risk is also different from hazard. Hazard can be referred as a source of danger. On the other hand, risk can be defined as the degree of probability of the loss. Hazard is the danger or the effect of a negative situation. Risk refers to the degree of the possibility of such a loss (Bessis, 2015). It refers to the likelihood of conversion of a source into an actual source of loss or injury. It can result in some form of damage to the people. The risk is relative to the observer of the incident. The phenomenon of risk is dependent upon observer of the event. Therefore, it is also referred to as, perceived risk. However, there is no absolute value of the risk as it is based on the probability (Heckmann, Comes Nickel, 2015). In order to control the impact of the risk, the business organizations use risk management strategies. The riskmanagement refers to the identification, evaluation and the prioritization of the risks so that they can be addressed in a proper manner. The riskmanagement strategies should follow coordinated activities to control the probability or the impact of the unfortunate events (Lam, 2014). The riskmanagement refers to the application of the economic and other resources to minimize, monitor, and control the impact of the unfortunate events. The purpose of the risk management is to assure that the uncertain event does not impact on the business or hinder the business goals. The risk can emerge from different sources, including the threats from the financial markets, legal issues, credit challenges, accidents or uncertain causes. There are several strategies to monitor and manage the threats. There are also certain aspects of risk management which includes monitoring risk, and developing strategies to control the impact of the risk. There are certain risk management approaches, which includes the prioritization process in which priority is given to different risk for the impact of the loss and the probability of the occurrence of the risk. In the practical terms, the probability of handling the risk is quite challenging, and; therefore, it becomes more challenging to balance the resources to mitigate the risk, so that, the probability and the occurrence of the risk can be reduced. The foremost challenge in the risk management is the allocation of the resources to different risk so that the risks can be handled in the best manner. The risk is the possibility of the occurrence of an event and adverse impacts on the life of the lives or the business goals. In the risk management, the risk identification is the f oremost step (McNeil, Frey Embrechts, 2015). The risk identification is the process of identifying the potential risk so that they can be managed in a proper manner. The risks refers to the events which can cause potential problems or benefits to the organization. The risk refers to the events which when triggered, can cause potential problems. The risk identification initiates with the exploring the source of the problems, the causes or the challenges in the problem itself. It can be critiqued that the source of the risk can be in internal or external. However, the target of the risk management is to mitigate the risk so that the factors of risk management can be applied (Slovic, 2016). In the next step, the problems pertaining to the risk are analyzed. The threats may exists with different entities; therefore, there exploration is important. It can be critiqued that when the problem or the source to the problem is not known, it creates challenges in the mitigation of the problem. Different companies or different people choose different methods to mitigate the risk. It can be stated that the chosen method to address the risk depends upon the culture, practices followed by the industry, and the compliance approaches used. Once the risks have been identified, they must be evaluated on the basis of the severity of the impact and the chances of occurrence. In the assessment procedure, it is important to make the well-informed decisions for the best implementation of the risk management plan. In the risk assessment, the fundamental difficulty is obtaining the statistical information related to the occurrence of the risk. It is due to the fact that all the information is not available regarding the past occurrence of the catastrophic events due to the infrequency in their occurrence (Blaikie, Cannon, Davis, Wisner, 2014). Other than that, the evaluation of the severity of the occurrence is also difficult as it is hard to evaluate the impact on the intangible resources of the organization. When a risk is identified, and the potential impact on the risk is evaluated, then the risk mitigation strategies are proposed to address the risk. There are several approaches or strategies to address the risk. However, all the major risk mitigation strategies can be categorized in one of the three categories. In the first category, the risk containment and control processes are included in the project from the initial stage. In the second strategy, the companies can periodically assess the risk, and modify the mitigation approaches to deal with the risk. The third strategy is to transfer the risk altogether to an external place. Therefore, the potential measures for the treatment if the risk are: avoidance, reduction, sharing, and retention of the risk. In the risk avoidance, the organization or the entity avoids the activities, which can invite the risk. It is the process in which these activities are not carried out, which can invite the risk. Another strategy is risk reduction ( Acharya, Pedersen, Philippon, Richardson, 2017). It is the process of optimizing the risk so that the severity of the loss can be reduced. In this process, likelihood of occurrence of the risk can also be reduced. In this method, the risk is optimized. It means that a balance is found between negative risk and the benefits of the operations of activity. The risk sharing is the process of sharing the burden of the risk with an external party. It reduces the burden of loss or profit from the risk. In several cases, it is a significant measure to reduce the impact of the risk. It is also known as risk transfer which can be used to transfer the risk to another party. The risk retention is accepting the likelihood of the occurrence of the risk. In this strategy, the organization bears the loss, which may arise with the risk (Haimes, 2015). The risk retention is an appropriate strategy, which can be used to incur small risks. All the risks, which cannot be avoided or transferred has to be tolerated by the organization. Venue Risk Analysis The venue risk analysis refers to the risk analysis of a venue or place in which some events are organized. These events include conference, sports, concerts, meetings, or weddings. When a venue is designed, there are several negative and positive impacts of the design of the venue on the operations of the venue. Therefore, it is important that the business managers analyze the venue in terms of design, risk, and security. The hazards pertaining to the design can occur at any given time; therefore, it is important to address the risk. The risk analysis of the venue has a significant role in handling the overall operations of the organization. It assists the managers in managing the venue in terms of facility and the risk (Suter II, 2016). The managers should identify corrective measures regarding then quality of service. It assists in identifying the risks and proposing strategies to address the situation. The risk ranking system The risk ranking system or the tool refers to a system which can be used to identify and gives priority to the risks. The risks are given propriety depending upon their likelihood and severity of impact. The risks with the highest priority should dealt first, as they can severely damage the tangible or the intangible property of the organization. In the present case, a risk ranking system has been formed with different factors, namely, event of the likelihood of the risk, time of impact, financial severity, reputation severity, and the human injury severity. It is a significant tool which can be used to list the potential risk as per their impact on the organization as well as assist in identifying the controls which can be used to address the risk (Haimes, 2015). A likert scale has been developed for the evaluation of the risk. Scale Meaning 5-Severe A severe risk is an event in which the risk will have a severe impact on the organization. The risk will hinder the organization in achieving the critical outcomes of organization 4-Significant The significant risk are those risks, which will impact the organization in achieving the desired results. It can hinder the organization in achieving one of more intended objectives 3-Moderate The moderate risks are those which will moderately impact on achieving the desired results of the organization. It will fall below the minimal acceptable levels of the organization. 2-Minor A minor risk event is one, in which the risk might have a significant impact on achieving the desired results. It impacts the organization such that, one or more intended objectives fall below the goals; however, it is in an achievable level 1-Minimal The minimal risk event is one in which the risk has little to no impact on the intended outcomes of the organization S. No. Risk Probability of Occurrence Impact of Risk Mitigation Strategies 1 Height of shelf falling of bar tender 3 (probability of occurrence is moderate as the bartender can fall frequently while collecting products from upper shelf) 4 (The impact is significant as it can result in heavy injury to the bar tender) Appropriate ladder or foot steps should be constructed to address the situation (control of risk) Insuring the bartender (transfer of risk) 2 Misbalancing of chairs (the chairs bought are not in ideal conditions and they are not balancing on the ground) 4 (probability of occurrence is significant as the guests can fall off their chair frequently) 3 (probability of occurrence is moderate as there will not be any severe damage to the human lives). However, it can create a negative impact on the reputation of the organization The organization should buy new chairs (control) 3 Lack of disability access 4- probability of occurrence is significant It can cause severe damage to the reputation of the organization 3- moderate level of risk It can cause severe damage to the reputation of the organization The inflow of the customers will be low The customers with disability will not be able to attend the restaurant The organization should construct new access or route to the restaurant for the disabled people. A ramp can be created. Long with it, separate toilets or restrooms can be created for the handicapped people. (control) 4 High level of competition 4- Probability of occurrence is significant as the restaurant is constructed in one of the major business areas. Regularly new restaurants and eating areas are opened in the near vicinity. Although these restaurants are selling different menu or dishes, there is a significant loss in the market share of the organization 4- Probability of occurrence is significant as the company losses a large number of customers Create a unique brand image and offer high quality products. The restaurant can also initiate offers, discounts or loyalty coupons. (control) 5 Blockage of Emergency exit 3-It is a moderate level of risk as the frequency of occurrence of severe accidents is very low 5- It is a severe risk as severe hazards such as fire and earthquakes can have a severe impact on the building It can cause severe damage to the human lives, if these exists are blocked Changing the internal infrastructure so that these emergency blocks can be reduced (control) 6 Lack of lighting as many LED bulbs are not working 5-the frequency of the risk is high 2-it will have minor impact on the organization Changing the lighting of the organization as soon as possible (control) 7 Smoke detectors and sprinklers are not in good workable conditions 4- the frequency of the risk is significant 5-the impact of the risk is severe as the fire accidents can cause severe impact on the organization Implementing new smoke detectors in good quality 8 The entrance and the emergency exit of the restaurant are not in working conditions 4- the frequency of the risk is significant 5-the impact of the risk is severe as the accidents can cause severe impact on the organization Changing the infrastructure of the organization 9 Floor is not in ideal condition which can cause reputation damage to the organization 2- the frequency of the risk is minor 4-the impact of the risk is significant as the fire accidents can cause severe impact on the brand organization Changing the flooring of the organization References Acharya, V. 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