'Business Risk Management is beneficial to large corporations and not Essay

Business Risk Management is beneficial to cock-a-hoop corporations and not to belittled to medium enterprises (SMEs) - Essay ExampleAt the start up phase of any business, the magnitudes of insecurityinesss remain the same. However, as the business starts to grow, the risk associated with it besides grows. This is to begin with because of the fact that, the resources involved in the business also increases proportionately. hence, large placements are prone to more business risks than a small and medium sized enterprise. As a result, implementation of risk focal point technique positively impacts their business. For a large organization implementation of risk management helps them to enhance their shareholder value, reduction in total cost of risk, improves business resiliency and also increases the operational efficiencies (Jolly, 2003). On the other hand, the intensity of risk for the SMEs is less in comparison with large organizations. This is primarily because of the fact that they do not function on a large scale and operates with less resources. Hence, they put on less exposure to business risks and thus implementation of risk management techniques will have just now have any positive impact on the business operation. Moreover, it also increases the operating cost of a business.In response to one of the group members namely Penina, although risk management helps the organizations to assess the business risks, merely I believe, it mostly benefits organizations which operate on a large scale. On the other hand, the common risks for the SMEs stand be identify without any implementation of risk management techniques. Thus, the notion of risk plays a major role in determining risk management. ... On the other hand, the common risks for the SMEs can be identified without any implementation of risk management techniques. Similarly in this context, the notion of risk intensity plays a major role in determining the importance of risk management. For ex ample, in a large gimmick company, there are more workers who perform their duties at high altitudes, more number of office ply and more number of cars are required to provide logistic service in comparison with an organization which operates on a small scale. So, the large organization can anticipate having more riskier events, simply due(p) the fact that they have more exposure or opportunity for facing a risk event. In simple words, the probability of risk increases proportionately with the amount of resources involved. Therefore any level of investment pertaining to risk management by the large organizations will have high return on investment. Nevertheless, I jeer with Penina with her statement that all business face future risks however it is dependent upon the size, industry and operations of that feature company. Now in the context of a small and medium sized enterprise, investment pertaining to risk management has low return on investment. The SMEs employ less number o f workers and also involve less metre of resources. This depicts that, the probability of a risk event is very low in comparison with large organizations. Hence it can be justified that the return on investment pertaining to risk management by the SMEs is low. Penina highlighted that course a business regardless of size can be a dangerous occupation with legion(predicate) different types of risk, as risk is an inherent part of any business, economy and other issues can a lot increase