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Corporate Risk Management: Inherent Risk Term Paper

When new employees are appointed, for example, they should be observed thoroughly during the first months of work in order to assess their stability and stress levels. A reporting system could also be implemented, by which workers are encouraged to consult management regarding their own or a co-worker's stress levels and concomitant work performance. It is important to ensure that none of these measures be perceived as unfair. In terms of mechanics and electronics, it is highly likely that any machine, computer, or other device is likely to fail some time during its lifetime. It is also highly likely that this will occur during the operation of such a machine. Depending upon the nature and importance of the machine in question, injury may result for the employee operating the machine, or the company may collectively suffer loss or damages in terms of elements such as lost data.

One important way of mitigating machine breakage risks is via regular updates, maintenance,...

While this cannot guarantee that machines will never break, it can significantly reduce the risks associated with such breakage. Regular monitoring for example will result in more accuracy in terms of predicting breakage and taking precautionary measures before this occurs.
In the human/machine partnership, it is also possible that inexperienced or untrained employees may be responsible for breaking a company's machinery. This risk can be mitigated by ensuring, as mentioned above, that only personnel with adequate expertise and training work with their assigned machinery.

All companies rely heavily upon systems in order to ensure the smooth operation of their business. It is therefore also of optimal importance to ensure that these systems operate perfectly for as long as possible. This can be done by regular monitoring and maintenance both of machinery and the human beings working with it.

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