Risk Management Is Important Within An Organization Essay

Risk management is an effort to take the risk associated with a company and finding ways to minimize it from causing significant and unexpected harm on the business. In April 2010, a British Petroleum and Transocean Deepwater Horizon oil rig exploded resulting in one of history’s largest spills in the Gulf of Mexico. This spill was so devastating that it took almost four years and billions of dollars to clean up. The environmental damage cannot even be fully determined and the economic damage has not been completely been healed even today. This disaster was not even considered to happen because it was very unlikely to happen which is why risk management is important within an organization. Although it was very unlikely to happen it did and it cost British Petroleum almost 25% of its market value and about $40 billion in expenses to clean up. An investigation conducted by the United States government concluded that this occurred due to a lack of risk management and explains spe cific factors that caused the disaster in relation to how risk management could have prevented the incident. In the news, you can see several headlines about how businesses engage in unethical behavior motivation by financial gains. Companies can refrain from emerging in the headline of the news through the proper utilization of risk management in most cases. Risk management is the consideration of risky situations and utilizing every possible means to minimize the risk as low as feasibly possible.Show MoreRelatedRisk and Quality Management1593 Words   |  7 PagesRisk and Quality Management Assessment Summary Angelina L. 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