Risk Management Spectrum

Question: What is Risk Management? Explain. Answer: Risk management is something which is prevalent across the spectrum of business but also in other spheres of society and life in general. In simple words, risk refers to an uncertain event or condition, on the probability of occurrence has positive or negative effects on a specific projects objectives. Risk planning refers to be setting up for any threat or uncertainty that may crop up in any part of operations of business. While management of risk means how to mitigate the probable threat and finally negate the uncertainty in the best possible way for sustaining operations in general (Halbouni et al. 2016). The rationale of Risk Management: The purpose of risk analysis is to develop and to decipher of the risk or for that matter opportunity for evaluation of decision of whether any response is required in the context. Risk management is an incessant and futuristic process which is a vital cog in the management process of any organization, overall. The risk management should address the key issues that may cause severe ramification on the business operation (Al-Dhaafri and Al-Swidi 2016). An effective risk management includes aggressive recognition of the probable risk at an early stage so that it would be relatively easier for the associated parties or stakeholders to mitigate the threats in the process. The risk management may be divided into three segments, the likes of, analysis of risks, handling of identified risks and implementation of the risk alleviation plan as the case may be. Business operation in the UAE entails over a plethora of risk and uncertainties. The relevant risks t hat stem in business operation are mainly, political and economic, human rights, corruption, technology and Intellectual Property Rights, Human Capital, Reputation, Finances and Strategic Issues (AlHussaini and Karkoulian 2015). Types of Risk and Threats: UAE being a prominent trading hub is exposed to threats owing to intellectual property. It is exposed to significant trade in counterfeit goods, and other IP infringement which covers a wide range of products and industries. The UAE assuming to be a significant member of the WTO is obliged to World Intellectual Property Organization Agreements or TRIPS, Trade-Related Aspects. Regarding copyright, Federal Law provides protection to industrial works and artistic works. As the UAE is a signatory to the Berne Convention any works performed by nationals of other Berne Convention unions will be accepted in the UAE. Regarding patents, the UAE would permit patents for new conventions wherein the idea has its base on scientific principles and is vulnerable to industrial exploitation. The fact of the matter is, UAE being a contradicting state for Patent Cooperation Treaty necessitates for patent protection simultaneously of a vast number of states by the means of Int ernational Patent Application (Elkelish and Hassan 2014). Response to Risk or Threat: The risk mitigation process about IP is an essential element in the process which involves strategic management as well formulation of risk reduction techniques (Halbouni et al. 2016). Firms operating in UAE are motivated by similar goals which include the identification of risk sensitive intangible asset, addressing of emerging threats to IP, allocation of risk resources and attainment of compliance within the purview of a legal and regulatory environment wherein the firms operates. IP is on transitional phase from being an exclusive legal concern to that of the strategic issue. The economic emergence has propelled positioning of IP risk management from being a defensive mechanism to the offensive ploy. The same has significant implications for the firms prospects. A collective relationship is promulgated for managing risks, and the maturity of the proposition is being hastened through technological developments (Kardes et al. 2013). The measures like clo ud computing may be implemented as risk mitigating measure which will heighten the efficiency of the IP sharing method. While IP threat is an ambiguous proposition, development of risk management strategies for addressing of the issue involves execution of various programmatic fundamentals the likes of, structuring of strong Patent Law and ensuring the necessary level of leadership commitments, aligning the action with that of strategic goals deserves special mention in this regard. Also, the creation of global framework and formulation of strong IT monitoring procedure, regular reviewing of network architecture and finally requisite training and education may form as robust IP risk mitigation plan. The factual reality is while such measures may be challenging, the actuality of contemporary business domain calls for vigorous valuation along with risk mitigation measures for realization of the potency of organizations intellectual property (Idris and Abdullah 2016). Owing to the complexities that prevail in the business domain, it is imperative for the business to create and sustain risk mitigating ploys in the ranks. Various risk response has been elucidated in the previous account which finally deduces to the formulation of cloud computing technology as a different risk management response thereby offering a different insight which only brings efficacy in the business operation in the region. References: Al-Dhaafri, H.S. and Al-Swidi, A., 2016. The impact of total quality management and entrepreneurial orientation on organizational performance. International Journal of Quality Reliability Management, 33(5), pp.597-614. AlHussaini, W. and Karkoulian, S., 2015. MITIGATING OPERATIONAL RISK THROUGH KNOWLEDGE MANAGEMENT. Journal of International Management Studies, 15(2). Elkelish, W.W. and Hassan, M.K., 2014. Organizational culture and corporate risk disclosure: an empirical investigation for UAE listed companies. International Journal of Commerce and Management, 24(4), pp.277-299. Halbouni, S.S., Obeid, N. and Garbou, A., 2016. Corporate governance and information technology in fraud prevention and detection: evidence from the UAE. Managerial Auditing Journal, 31(6/7). Idris, S.M.M. and Abdullah, A., 2016. A Conceptual Framework on Determinants of Enterprise Risk Management (ERM) Adoption: A Study in Manufacturing Small and Medium Enterprises (SMEs). In Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014) (pp. 245-255). Springer Singapore. Kardes, I., Ozturk, A., Cavusgil, S.T. and Cavusgil, E., 2013. Managing global megaprojects: Complexity and risk management. International Business Review, 22(6), pp.905-917.