Free Custom «Factors in Risk Management» Essay Paper

Functional behavioral assessment is in general well thought-out to be a solution finding process for addressing human behavior (Geller 2001). It depends on a variety of procedures and strategies to discover the purposes of specific behavior and to help select interventions to directly address the problem behavior. Behavioral assessment ought to be integrated all through the process of developing, reviewing, and, if necessary, revising human behavior. It looks beyond the behavior itself. The aim when conducting a behavioral assessment is on identifying significant social, affective, cognitive, and environmental factors associated with the occurrence (and non-occurrence) of specific behaviors. This broader perspective offers a better understanding of the behavior.

Any form of risk management preparation is intended to sketch for probable risks and drawbacks that may occur as part of a project. Output shortages, design breakdown or malfunction, and other kinds of risks are frequently included in risk management projects (Geller 2001). Nevertheless, human factors are in most occasions erroneously left out. In Poland, there was the 2009 financial and economic crisis that posed as both a national and also an international threat to people all over the world.

 

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Including Human Factors in risk management

It’s believed that a firm or institution is only as good as its people (Geller 2001). Therefore, these individuals in actual fact are accountable for the accomplishment of any project. Because any high-quality risk management plan must take account of all probable contingencies, human factors should also be incorporated. The international organization for standardization recognizes human factors to be among the eleven critical constituents of risk management; together with the fact that risk management should be a fundamental part of the decision making procedure that concentrates on insecurity.

Accounting for Human Factors

When making a viable plan on risk management, one should normally file potential actions that can take place, the likelihood that the said event will occur, the consequence of what might happen if it occurs, thoughts for curbing the problem, and an emergency plan to minimize the result of the event. Once examination of the likelihood of an event and the procedure followed to mitigate the risk and make an emergency plan have been done, one may then assess the real risks that take place in the project. Therefore, to incorporate human factors one needs to think about what the individuals working on the plan might do, how they might impact it, and what can be done to reduce the risk of troubles taking place through human participation.

Human Factors to Consider

Leadership and human behavior work together. To be a successful leader or supervisor, one must understand the people and work closely with them in order to resolve their problems. The primary nature of individuals is that they are quite unpredictable. No employer is sure of what might happen in the work place or when a project is underway. Therefore, when accounting for human factors, a risk manager is required to think about any possible occurrence that may take place when dealing with individuals. Some factors to consider include: main project human resources leaving the project for any reason be it personal, medical or career reasons. Without an emergency plan, the whole project may fail: differences among project contributors may also bring the project to its knees: lack of cooperation from the subordinate staff may result in failure as every department must work together with another so as to be successful.

Therefore, human factors and risk management ought to play a vital role, particularly when scheming a risk management plan (Geller 2001). Together with analyzing other risks, a manager should identify the human factor element in the event need to reconsider the project plan arises. Human behavior can be regarded as totally captivating.  Examining individuals and trying to envisage what action they will take next can offer a real learning skill. Often, human behavior is quite predictable. However, individual personalities can be exceptionally complicated but there are areas that can be concluded with a high level of preciseness.  That is part of the value in using authenticated personality assessments.  This information may be used when an employer wishes to promote an employee and it would be beneficial to know how they would perform on the new job. This information can also prove to be useful when gathering up a team to supervise a new project.

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It is very important to understand and analyze human behavior in the current world as the survival of the business relies on the employees and all individuals involved. Without a good picture of human behavior it is quite hard to work in any institution. Human behavior is not easily predictable. In human behavior we cannot presume one set pattern of behavior. Behavior may be classified as: caused behavior, motivated behavior, and a goal oriented behavior. From the above analysis it is quite clear that behavior is a reliant factor. By understanding human behavior it becomes easy to predict, direct, change and control behavior of people.

The Polish people displayed different forms of behavior during the severe recession in 2009. The financial and economic hardship at that time was so severe that numerous workers were laid off at work places in order to maintain company profits by reducing inputs. Some people were threatened by the process while others displayed no emotions. Remaining calm was quite hard but as discussed above, different individual react differently to threats. In order to understand the different human behaviors, it is important to consider all other underlying factors and then assess the effect of every behavior portrayed by individuals. The neoliberal strategies and the worsening in labor supply created a vital viable ground to bury the seeds of a main global crisis coupled with debt accumulation, and the risky developments in the credit, housing, and security markets. Thus what the Polish were undergoing was a crisis of high exploitation rates and extreme inequality in distribution; and similarly the policy reactions to the crisis are were part of a distributional struggle.

The global economic and financial crisis has had an intense effect on the public funds of many states, especially those in the Europe region. Unlike most of European countries, Poland in point of fact faired quite well in the face of the 2008 recession. Within the EU, Poland was quite lucky and unique throughout the financial crisis. It remained to be the only European state that maintained a positive GDP growth all through the stages of the economic crisis. This was mainly because of the sound basics employed. Five years before the crisis, Poland had gone through rapid growth of more than 5 % on average (Lukwoski and Zawadzki 2001). In 2007, Poland was doing so well that its budget deficit was reduced below 2 %. Above and beyond these achievements of the Polish government, there were other factors drawn in as well: First, the Polish economy is quite closed compared to the other members of the EU. As a result of this, the reduction in international trade did not affect their dealings so much compared to other more open economies. Second, Poland still uses the monetary policy as a macroeconomics tool to control the economic activity since it is not a member of the Euro-zone.

The Polish government used a strong depreciation policy against the Euro to maximize its competitiveness in the region. Third, the inflow of EU finances and Poland’s own investment aimed at recovery and the plan kind of insured the underutilization of creation capabilities and the tightening of credit specifications. Forth, the private expenditure could be sustained through fiscal support for households. Fifth, most Polish banks were not so much drawn in on high risk speculation. The conventional regulatory strategy and sound balance sheets prevented Poland from incurring high losses. For the year 2010, less than 2 % growth is projected to occur and then growth will pick up the pace again in 2011. The rate of unemployment is projected to rise a little from its current level of 8.5.

All through the recession, Polish citizens maintained calm and acted reasonable. This prevented panic surge across the country resulting to minimal complaints and industrial actions. Poland had experienced worse conditions earlier in their history and therefore most individuals were already psychologically prepared for the disaster. This helped to cushion risks that would have otherwise been severe. Human behavior in Poland’s case was favorable for growth and helped reduce the risks of the disaster unlike in most countries where the crisis were met by panic resulting to strikes, demonstrations and to some extents mental problems. Although Polish citizens were affected by the financial crisis, their reaction was that of rational individuals.

From the discussion above, risk management is the organized method of identifying, analyzing and the preceding approval or alleviation of doubt in any form of investment decision making. This process is probabilistic and is executed whenever an investor tries to forecast about the future in order to predict the right action considering all risks involved. Poland is a good example of a country that has had risky incidences that demanded for proper management in order to restore peace. In the late 70’s there was a social unrest in the port cities of Gdansk, Gdynia and Szczecin which was fuelled by increase in prices of necessary consumer goods especially foods making it an economic crisis. The protests displayed the discontentment of the people towards the living and working conditions in the country. Several strikes followed and they lead to the formation of the independent labor unions cohesion. The unions formed independent labor unions cohesion. The whole of Poland was in disturbances and this resulted in declaration of martial law in 1981 with all liberty reduced. Curfews, private mail monitoring, suspension of schools, travel bans, strikes bans and communication cuts were imposed to all citizens. Participating affiliates of Solidarity or other self-regulating organizations were victimized, detained, and often exiled. Economic sanctions were imposed on Poland by the US and other western countries in a bid to prompt normal operations and liberty in Poland. Unrest and chaos in Poland persisted for numerous years thereafter.

Any form of risk management preparation is intended to sketch for probable risks and drawbacks that may occur as part of a project. Output shortages, design breakdown or malfunction, and other kinds of risks are frequently included in risk management projects. Nevertheless, human factors are in most occasions erroneously left out. In Poland, there was the 2009 financial and economic crisis that posed as both a national and also an international threat to people all over the world. Inflation in 2009 was about 4% and in the year 2010 it stood at - 2.5%. It has maintained stability over the last decade keeping it below 4%. The economic and financial crisis in 2009 resulted in the rescheduling of the launching of the Euro in Poland. The government’s patent objectives are the support of macroeconomic stability and the battle against fiscal debts (Nanto 2009). However, the global economic and financial crisis affected Poland to a lesser level than other E.U. countries. The Polish people displayed different forms of behavior during the severe recession in 2009. The financial and economic hardship at that time was so severe that numerous workers were laid off at work places in order to maintain company profits by reducing inputs (UNCTAD 2009). Some people were threatened by the process while others displayed no emotions. Remaining calm was quite hard but as discussed above, different individual react differently to threats. In order to understand the different human behaviors, it is important to consider all other underlying factors and then assess the effect of every behavior portrayed by individuals. The neoliberal strategies and the worsening in labor supply created a vital viable ground to bury the seeds of a main global crisis coupled with debt accumulation, and the risky developments in the credit, housing, and security markets. The findings in this paper are vital in learning about past developments or events that posed or were viewed as threats. It also produces a frame work of studying how these threats were handled back in the day in order to improve on the present society if similar threats whether real or perceived were to occur. The study also helps us to learn how to manage risk and mitigate threats in the future.

Poland has suffered a number of disasters in its history as a republic and even before that. These disasters experienced in Poland can be categorized as; political threats, economic crisis, cultural crisis and military threats. How individuals react to this crisis matters a lot as it marks the break or make point in all spheres of life i.e. economical, political, cultural and military actions. These are all aspects of human behavior that may decrease, maintain and/or increase the threat at hand. The human behaviour in Poland favoured growth and helped maintain calm and order and helped to maintain the country’s GDP at a level that no other country in Europe could maintain (Geller 2001).