Opportunity management principles and practices

Opportunity Management

What tools can be used to identify and map risk (in the field of management)? How can risk be measured/mitigated?

There are a myriad of tools and techniques that can be used for identifying and mapping risk. Many enterprises rely on a combination of risk management methodologies, tools and techniques to best anticipate and react to threats while capitalizing on opportunities. By taking this multifaceted approach to enterprise risk management, organizations seek to optimize their management of risk to the current market conditions and constraints of operations (Abrams, Muller, Pfitzmann, Ruschka-Taylor, 2007).

The techniques most often used from a multifaceted standpoint include brainstorming, SWOT (strengths, Weaknesses, Opportunities, Threats) Analysis, primary research-based methodologies of risk questionnaires and surveys., risk scenarios analysis and pervasive use of enterprise risk management (ERM) systems to aggregate all available intelligence into a single system of record. Creating a single ERM platform that includes a common system of record that serves the entire enterprise has been shown to significantly improve financial performance of a firm over the long-term (McShane, Nair, Rustambekov, 2011). Combining brainstorming, SWOT analysis based on qualitative research and the use of quantitative measures of risk assessment into a single integrated strategy delivers greater insights into risk management from a financial management and strategic planning process perspective as well (Alviniussen, Jankensgard, 2009). The unifying of the qualitative and quantitative aspects of ERM leads to firms having an ethically sound roadmap (McShane, Nair, Rustambekov, 2011).

DQ #2: How do organizational leaders calculate employee knowledge value in a for profit enterprise?

The quantifying of employee knowledge value is often defined in financial terms of evaluating the company's year-end shareholder equity relative to its capitalization rate or Market Value. The difference between shareholder's equity and market capitalization rate is often considered the knowledge value (KV) of a firm (Strassmann, 2005). This figure is then equally distributed across the number of employees to determine KV-per-employee levels, in much the same way sales-per-employee is calculated and used in many different company comparisons.