Mgt 437 Wk5

Overview

Everybody has learned how to accept risk since childhood days. Our parents have taught us not to touch hot pot or drink hot drink but when we do, we felt the pain and never repeat the same mistake. This is a simple process of accepting the risks and changes in our daily activities. As we grow, we have articulated the process and apply risk management principles of accepting the risk if the benefit outweighs the cost, making risk decisions at right levels, and not to accept unnecessary risks. These principles were adopted by the Department of the Navy in their operational risk management program in mishap reduction and prevention (Navy Safety Center, n.d.).

Risk Management

One key document that a program manager needs to prepare is the risk management plan. Risk...