7 Feb 2023

128

Risk Management: What is Risk Management?

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Academic level: College

Paper type: Research Paper

Words: 1115

Pages: 4

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For the society to grow and develop, there is a need to undertake various risks in life. It means that risks are part of human’s day to day lives. In such a dynamic world, risks evolve with each new day thus it is important for people to undertake various strategies so that their threats can be minimized. The only way to achieve this is through risk management. This is the process whereby risk is analyzed, understood and addressed so that an organization or people can have no problems attaining their objectives (Edwards and Bowen, 2005).

According to Decker (2001), following September 11, 2001, attacks on The Pentagon and World Trade Center by terrorists, the USA Congress passed a bill to counter terrorism. The bill called for the setting up of a new federal agency whose sole aim was to ensure such attacks never happen again on the US soil. The Department of Homeland Security was formed on November 19, 2002. However, the USA is not bestowed upon with resources that can enable DHS to protect everyone and everything individually. As such, there is the need for allocating resources to the different critical assets depending on the risk prioritization. As such, the Department of Homeland Security has to ensure that it first understand what risks each of the critical assets are likely to face. Rosenzweig and Kochems, (2005), state that the risk management process used by the DHS in determining this is based on three variables; threat, vulnerability, and criticality assessment.

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According to Rosenzweig and Kochems, (2005), threat assessment, it is important to determine the several components that form an attack probability. This includes an assessment of the near threat. It determines the different assets, people or function that is likely to be attacked. It is then followed by the attackers' capabilities on the object determined. In the vulnerability assessment variable, it is important to determine what vulnerabilities can be used in supporting an attack and how they can be eliminated or reduced. The final variable is the criticality assessment identifies the effects of a successful attack on a particular object. It is through this that the criticality measure of different assets is determined.

The homeland security environment in the USA is complex and is filled with contending necessities, interest, and incentives. These aspects must be stable and managed efficiently to safeguard the accomplishment of crucial national goals. Schanzer and Eyerman (2010) state that the DHS has to ensure that it maintains this environment. Through risk management, this achieved. This process will help the DHS in listing the different threats which range from acts of terrorism to other human-made incidents in such a manner that will prioritize the ones that pose the greatest danger to the country. Through risks management, the DHS can manage the internal and external risk that might bring about the loss of lives, injuries, loss of economic activity or loss of confidence from the government. With the past not serving as a door to the future in the world, it is, therefore, important for this federal agency to always be prepared in case of any threats. Despite the fact that risk management does not mean threats will not occur, however, it allows the agency to put its focus on things that are likely to happen and bring about harm.

Risk management enables the DHS in measuring its performance in bringing about national and economic security (Mueller, & Stewart, 2011). Since its inception in 2002, the DHS has been able to foil various terrorist attacks in the USA through risk management. There has not been another terror attack in the country with catastrophic consequences like the September 11, 2001 attack (Mueller, & Stewart, 2011). In case certain threats occur in the country of which the agency could prevent, it indicates that it did not do its duty as required, as such; the department will come up with better means of preventing a similar happening. Through threats that occur and supersede the DHS prevention strategies, it indicates that it is performing poorly. However, in case an attack that is planned and is later foiled by the DHS, its overall performance is said to be good. The mean through which an attack is prevented in the country is through risks management. In case the measures set to fail or work, the result will be used in evaluating the department's overall performance.

The sustainability and preparedness of the urban areas are highly dependent on the federal grant assistance from the US Department of Homeland Security. The major program that depends on this grant is the Urban Area Security Initiative (UASI). The largest metropolitan areas in the states are the main beneficiaries of this fund. In 2015, a total of $580 million was awarded to about 28 urban areas (Mohar, 2015). However, the number of eligible urban areas increased to 64 in 2015 as compared to 25 in 2007 (Mohar, 2015). These funds enable the prevention, protection, mitigation and recovering from any acts of terrorism. This method through which the DHS offers the grants is based on risk management strategies laid down by the DHS. This risk-based process is also what determines which urban area will get the grants. This is despite the fact that public law has set a criterion that should; be followed in awarding the grants (Mohar, 2015).

For the DHS to ensure that it fully operates to its maximum potential, it must have funds in place top run all its operations. However, there is no one means through which it can offer protection to the entire critical infrastructure and USA citizens. Therefore, the agency at times, it offers equal weight and equal distribution of resources to the entire infrastructure. A major setback for such a method is that there is certain infrastructure that does not have any risk as a result of disaster or terrorism yet it is still receiving resources protect it against the threats. However, the budgeting process should begin with a threats assessment that will determine any declining and emerging threats on various aspects of the country’s critical infrastructure including the citizens. According to Schanzer and Eyerman, (2010), the DHS has developed an assessment tool that it uses in making decision-related to budget allocation referred to as the Risk Assessment Process for Informed Decision- making (RAPID).This tool allows the department to come up with budgetary allocation depending on the identified levels of threat and strategies that are bound to prevent the occurrence of the threat.

The security, safety, and justice are among the most significant concerns the government ensures that its people are having. In the USA, following the September 11, 2001 attacks, there was a need to ensure such a blow does not hit the country again. This saw the DHS being formed of which it has been able to offer its best to the USA citizens and country in general. However, in carrying out its duties, the department has to use risk management techniques in determining the threat levels in the country. The risk management techniques will also help the Department of Homeland Security t in grading its performance levels, budgeting, and decision making.

References

Decker, R. J. (2001). Homeland security: Key elements of a risk management approach (No. GAO-02-150T). Washington DC: General Accounting Office.

Edwards, P. J., & Bowen, P. A. (2005). Risk management in project organisations . Sydney, N.S.W: University of New South Wales Press.

Mohar, C. (2015). Assessing Grant Allocation Methods for Federal Homeland Security Urban Area Assistance Funding . Monterey CA: Naval Postgraduate School Monterey United States.

Mueller, J., & Stewart, M. G. (2011). Balancing the risks, benefits, and costs of homeland security. Homeland security affairs , 7 (1).

Rosenzweig, P., & Kochems, A. (2005). Risk Assessment and Risk Management: Necessary Tools for Homeland Security. Heritage Foundation Backgrounder , (1889).

Schanzer, D. H., & Eyerman, J. (2010). Improving Strategic Risk Management at the Department of Homeland Security. Retrieved on 11 April 2017, from https://fds.duke.edu/db/attachment/2183.

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https://studybounty.com/risk-management-what-is-risk-management-research-paper

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