Integrated Risk Framework?/ Risk facing by the business?

Integrated Risk Framework

The frame work need to address all of the risk in the organizational assets. These are:

Þ    Financial assets (like cash, credit, and negotiable instruments).

Þ    Physical assets (like land and building and other equipment).

Þ    Human assets (knowledge, skills and commitment of people).

Þ    Intangible assets (like reputations, brands and information).

Domains of Business

1-Ownership risk                                        

2-Process risk                                     

3-Behavioral risk

1-Ownership risk refers to risks like external threat to organizations are unions, group making pressures and custodial risk like threats to assets destructions, steeling of assets. Hazards like asset associated loss or impairment through fire and natural man (accidental loss) and opportunity cost like purchase of wrong assets, selling of assets too soon or too late.  

2-Process risk is hazards like accidents to physical or human assets. Error/omissions/delays risk are due to poor judgments in plans and operations and machine malfunctions.

Frauds like kick-backs, big rigging, bribery, and productivity loss like under utilizations of assets, missing control and lack of monitoring system.

3-Behavioral risk is productivity loss due to poor management practices and poor leadership. Dysfunctional workplace like racism, workers injury place, employee law suits and workplace violence. Opportunity cost like hiring of wrong people or skills, a poor compensations system or letting wrong people or skills leave the organization.