critique discussion below

/in /by

Justine,

Introduction

As a leader in smart home technologies, Red Clay Renovations is often challenged to implement reliable methods of risk analysis and risk management. While internal methods have worked thus far, Red Clay Renovations is growing, and therefore should seek assistance on risk management from external sources which can guide larger enterprises to implement ideal risk management solutions. The U.S. Department of Homeland Security (DHS), since its inception in 2002, has played a crucial role in guiding government agencies and U.S. businesses by defining and implementing strategies to promote an overall risk-based information technology (IT) infrastructure (U.S. Department of Homeland Security, 2018). The following briefing paper will analyze the DHS Risk Management Fundamentals doctrine and determine if Red Clay Renovations should adopt a single risk management process.

Risk Management Fundamentals

The DHS Risk Management Fundamentals doctrine serves as the “authoritative statement regarding the principles and process of homeland security risk management and what they mean to homeland security planning and execution” (U.S. Department of Homeland Security, 2011, p. 05). While this doctrine is intended for use with businesses and federal agencies to mitigate threats and risks related to national security, the strategies outlined can be applied to any business wishing to analyze and manage risk. Risk Management Fundamentals focuses on a comprehensive list of functions which can be applied to risk management decision making. These applications include:

  • Strategic Planning – designed to address organization specific risk.
  • Capabilities-based Planning – for identifying specific organizational capabilities.
  • Resource Decisions – to address proper return on investment with regard to resource allocation.
  • Operational Planning – to determine which risks specifically affect the organization, and their consequences.
  • Exercise Planning – to identify realistic scenarios which can be exercised appropriately.
  • Real-world Events – to analyze threats and hazards to geo-specific locations and the critical assets which may be affected.
  • Research and Development – to identify innovative solutions and prioritize their development.

The doctrine also offers a systematic approach to risk management by recommending a standardized process which can reinforce communication for more structured and informed decision making. The DHS Risk Management Process acts as a cycle, in which consistent, two-way communication between stakeholders, partners, and customers is encouraged, allowing for a common understanding of risk and the aspects which lead to managing it (U.S. Department of Homeland Security, 2011, p. 15). This process, without proper guidance to all stakeholders, severely limits communication channels, therefore training these principles should be compulsory.

Risk Management Training

Opening up communication in the risk management process is extremely important, however there are other advantages to training these capabilities to stakeholders, and creating a business process which encourages dialog. Risk management training undeniably ensures employees will be able to conduct their duties more effectively, using tools and techniques which will help them execute strategies and respond to risk accordingly when it is identified (Ten Six, 2017). Additionally, management taking a vested interest in training risk management techniques can significantly improve morale and strengthen the work environment, as these tools will help employees to develop professionally and encourage them to use these skills tangibly.

Disadvantages

The DHS Risk Management Fundamentals doctrine is a great resource for encouraging communication with stakeholders regarding risk management. However, adopting a single doctrine to implement risk analysis and risk management is not always desirable. Risk reduction is often a guessing game, and relying too heavily on a doctrine that over-compensates for risk that is non-existent, may not offer effective return on investment. Therefore, the Risk Management Fundamentals doctrine may be beneficial for some companies, but whether or not this specific doctrine works for Red Clay Renovations is subjective, as including other risk management strategies may be more conducive.

Overview and Conclusion

Adopting risk analysis and risk management strategies, such as those expressed in the Risk Management Fundamentals doctrine, can be extremely beneficial to ensuring Red Clay Renovations’ business operations run smoothly. Encouraging communication during the process of risk mitigation ensures all stakeholders are involved. However, without proper training of these strategies, Red Clay Renovations may not effectively improve due to the implementation of processes defined in the DHS Risk Management Fundamentals doctrine. Finally, while the doctrine provides sufficient risk management strategies, it may be advantageous for Red Clay Renovations to seek additional strategies which could be more useful to company specific challenges.

References

Ten Six. (2017, July 3). Why your team should do risk management training. Retrieved from https://tensix.com/2017/07/why-your-team-should-do…

U.S. Department of Homeland Security. (2011). Risk management fundamentals. Retrieved from https://www.dhs.gov/xlibrary/assets/rma-risk-manag…

U.S. Department of Homeland Security. (2018, June 15). DHS digital strategy. Retrieved from https://www.dhs.gov/dhs-digital-strategy