Recent years have proved to organizations that it is not only economic changes that affect businesses. Risks have become the center of focus in most establishments since they pose unseen threats to the financial sector. ldentifying these risks is a priority since they can be managed if it is not too late.
Both internal and external factors are considered so as to protect the organization from all angles.
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Both internal and external factors are considered so as to protect the organization from all angles. lnternal risks pose a direct threat to the organization and include failure to carry out strategies, financial losses, bad reputation within the market and failure to execute daily activities. External risks focus on inflation, natural calamities such as hurricanes and change within the political relations hence increased tariffs. Learning from previous risks helps a company be prepared for tomorrow. This way, a firm can plan out its future having in mind the challenges to be met on the way. The University of Texas Health Science Center at Huston offers a risk management program that is adequate since it adheres to the recognized standards of risk management focusing on their workers, property and business continuity to create a risk free environment.
At University of Texas Health (UTH), their program is reliable since it covers a wide scope of all those who come into contact with the establishment as well as their property and current/future activities. There is a detailed workers compensation and injury reporting procedure. The program offers medical and income benefits in case they are injured during te course of duty (UTH, 2019). UTH has made sure that the employees have medical cover in the case of accidents as well as compensation forms. All visitors and guests who visit the facility are also entitles to the risk management program in the case of an incident happening at within the premises. The facility also compensates for property loss or damage to the tune of $250,000. ln the event of an incident, the program is supposed to manage the depth, cost, duration, and time lost because of the risk that occurred.
UTH covers its employees and students who travel abroad under the institution as well. They offer worldwide response to those affected by incidents while working or studying. The program is called lnternational SOS and is reliable 24hours and covers security evacuations up to $100,000 per person per event, returning of minors, sending of deceased or critically ill back to their homes. With all these in mind, it is fair to say that the risk management program is adequate.
lt is important that model health facilities recognize the standards for risk management as well as compensation. The Federal Reserve requires all facilities with assets accounting to more than $10 billion set strategic plans that cover risk management within the organization’s profile (Lam, 2017). The UTH has ensured that it follows this requirement by having a clear guideline that can be used by all in the case of an incident. Besides that, the standards for risk management require the organization to educate the employees and give instructions on how to handle incidents. UT Health gives clear instructions on biological, chemical, and radiation safety. ln the case of fire or emergencies there are guidelines that give the required knowledge to individuals. One of the good things about the program is the ability to factor in the time, money, and labor that is lost when a risk occurs is also considered.
They call the program a Business Continuity Planning.
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They call the program a Business Continuity Planning.
Risk management standards not only require focusing on assets and people but also the organization as well. Therefore, UTH is able to avoid larger business interruptions. The facility is in accordance with the law since it compensates the victims affected within their jurisdiction. By doing this, they avoid litigations, financial litigations and incarceration for top management (Kavaler, 2014). Avoiding to pay affected individuals is a call for another risk. Therefore, firms will avoid all kinds of risks including those that include customer or employee complaints. Having disgruntled people against a healthcare facility will call for internal risks such as bad reputation. With a compensation program, all individuals who come into contact with the facility will feel well taken care of. Moreover, they will feel safer visiting or working in an environment where they are insured. Kavaler says that standards are statements concerning proper procedure and actions to be taken in the case of an incident (2014).
This is actualized by UTH since the organization ensures that there is proper documentation on their website where individuals can download forms according to their incident. UTH also ensures that they give detailed information on the kind of compensation they give at a national and international level. Their ability to structure guidelines to be adopted within their regulations, shows that they adhere to risk management standards. One of the areas that needs improvement is the external risks management program. Most of the program focused more on internal risks neglecting those risks that may not emanate from within the firm. As said earlier, these risks include economic, political and natural calamities. These are basically threats that the health center has no control over whatsoever but still needs to consider. For example, the case of natural calamities; are employees compensated if they are hurt while at work but from natural calamities? This was not so clear within the programs given by UTH according to the insurance the workers they were given.
Another case is when there is change within the political atmosphere and the economy. lf the country experiences inflation, will the employees receive compensation for their salaries over the period considering the service charges within the hospital do not reduce? lt is of great importance that external risks receive consideration through integration within the risk management guidelines. Transparency is vital as boards continue to see the need for more effective governance structures (Lam, 2017). UTH will have a better reputation and less financial litigations if the external risks that affect the organization are detailed within the guidelines or risk management and compensations. ln conclusion, risk management programs remain relevant since they are the main cause of uncertainty within organizations. UTH complies with the standards of risk management and makes the most out of implementing the programs offered within their guidelines that are easily accessible. The facility may have a risk free environment since it focuses on the major causes of risks but slightly neglects the external threats.
From their employees to property, visitors to future plans, the health institute has ensured that it covers all the incidents that may occur within their jurisdiction. With these programs, companies can function with more confidence in business.
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Technology is advancing at a very high rate. Societies are looking for ways to improving and simplifying their lives.GT advanced technologies is a diversified company in technology that undertakes various activities that are driven by expertise and experience. Product production is one of the activity whereby designing and product development is involved through expertise and innovation ability. The supplier relationship between GT and apple technologies went south or rather collapsed due to the risks involved and the inability to manage the risks experienced GTATS bankruptcy was one of the risks experienced in undertaking this project.GTAT was selected by Apple to supply sapphire that could have been used on the iPhone 6 screen in replacement of the glass screen (Bruni and Scheel,2013) .GT had financial difficulties that led to the company not being able to meet Apple requirements due to the paralyzed progress in manufacturing the sapphire.
Linking this contract of the product-level supply chain to Apple and GTAT development project was very risky(Wilson at.el,2017). For any development project to succeed the cost of production, risks,, and reward needed to be taken into consideration.GTAT believing in themselves and deciding to manufacture the sapphire was very risky regardless of the financial inabilities. The obligation was much into GTATS as compared to Apple where the apple wasas the beneficiary of the product.
The type of risk is strategic this is because the risk is relevant to the objectives of both the companies. GTATS advanced technology had to undertake the risks for the success of the project, this type of risk is undesirable therefore, risk mitigation measures are applied to manage this type of risk. Risk treating mitigation strategy based on 4Ts could have been the best suit for this type of risk. Reduction of the problem trying to get loans from other organizations could have been a good idea for the success of this project. Simplifying the risk by outsourcing ideas and choosing to transfer a collection of the project risks could have been the best way of treating the risk.
Conclusion GTATS collapse was led by the inability of the two companies in managing the risks they had. Bankruptcy and GTATS linking this product to the development project was the main two risks experienced by these two companies. Strategic risks are risks experienced by any company actualizing projects in relation to the companies goals and objectives. The two companies could have applied risk treating method which could have led to the success of the project therefore, sapphire could have been developed leading to massive growth and development of the two companies.
