Risk Management Program Research Paper Example | Topics and Well Written Essays - 2000 words

Risk Management Program - Research Paper Example Risk is the uncertainty surrounding future outcomes and events, and it is an expression of the impact and likelihood of the occurrence of an event, which is regarded to have the potential of influencing the achievement of the objectives of an organization. For every risk, there are two calculations needed, including its probability or likelihood, and the extent of the consequences or impact. Schwartz  (2014) recognizes that in certain organizations, risk management is used in issues that are predetermined as causative of unwanted and adverse consequences. In such firms, risk is understood in terms of the function of probability of the unwanted or adverse event, as well as the magnitude or severity of the event consequences. Effective application of management requires that the organization develops a risk-management culture, which should support the general mission, vision and objectives of the organization. There should be establishment and communication of boundaries and limits in relation to the acceptable risk outcomes and practices (Pà ©rez-gonzà ¡lez & Yun, 2013). Since the management of risks is directed towards the uncertainty associated with future outcomes and events, it is assumed that all exercises for planning incorporate a certain level of risk management. As a manufacturing company, Nike understands that production innovation, through a sustainability lens, is important towards the achievement of the company’s growth vision, which is independent of the constrained resources. In fact, creation and building of a business that acknowledges and accommodates constraints, as well as thriving through them within the natural setting is the sole way through which an organization can realize growth within the modern world, and this would not affect the company’s ability to succeed in the long term. The transition has been evidently challenging for the company as a