Financial security is a vital aspect in every organization. Ensuring that client information is maintained and secured helps in building trust and the organization’s authenticity. It is thus important for the officials to initiate policies as well as formulate strategies that will ensure this security. Prior to this, it is vital to identify the risks. In this context, there seems to be a breach of information within and beyond the organization. The discussion will thus evaluate the appropriate measures that can be implemented to minimize both the external and internal risks by developing a risk management policy. Primarily, it is vital to establish what is considered as a risk to the organization. According to the CSU risk Management policy (2006), a risk is considered as anything that can happen and influence the achievement of the organization’s objectives. A risk management policy connotes the development of lucid steps that sustain improved decision making through giving an imminent solution to risks and their consequences.
Externally, the breach of security can be managed through the establishment of password-protected database. Seeing that the organization’s information is easily accessible through their Internet connections, reviewing the system structure will help the organization to eliminate this risk. Creating a password protected system ensures that only the authorized personnel can access the information from the system. Considering the size of the organization, it is thus important to establish a risk administration team. This group will be responsible for preserving the reporting system and assisting the risk committee in implementing the risk policies (Anonymous, 2004). Additionally, having an expedite action plan at hand is vital. This plan will enable the organization to recover from the losses caused by the risks. In most cases, external risks arise from the surrounding environment the organization has no control over. In these instances, an expedite plan will be appropriate. Essentially, this plan contains foreseen risks and established feasible procedures of handling them.
Internally, this breach can be managed through the establishment of departmental risk assessment policies. Incorporating these risk policies within the departments will enable the organization to manage them effectively. Considering that different departments function differently within the organization, implementing policies that relate to those individual departments will help in managing the overall organizational risks. To ensure an effective operation in managing these internal risks, it is important to design the policies according to the organization’s procedures and structure (Anonymous, 2004). By having a risk register within the department, the organization is assured of an effective monitoring system. The register helps in analyzing the risks and enables the officials to keep track of them. Additionally, this can be achieved through the establishment of a risk committee, which will be charged with the responsibility of implementing the risk policies. A risk committee will act as the overall overseer of the risk management. It will provide the management reports and reviews of the risks.
In conclusion, risks connote predicted and unpredicted happenings that ostensibly tend to affect the achievement of organizational objectives. Risk management consists of the plans and procedures set to maintain these risks. Prior to developing risk management policies, it is important to identify them and assess their impact on the organization. In most cases, having a departmental risk management in place helps the organization in managing its overall risks. This can mostly be attained through the establishment of risk committees and teams. These groups seek to evaluate the risks and provide feasible solutions to the same. Essentially, it is important for an organization to have an expedite plan in place. There are times when the risks lead to losses within as well as without the organization; for instance, the loss of reputation from negative publicity. In these instances, it is vital to have a plan in place that will enable the organization regain its authenticity.