Risk Management: Role in Justice and Security Organizations

Risk Management: Role in Justice and Security Organizations
Risk, as it applies to justice and security organizations means “the uncertainty of financial loss, the variations between actual and expected results, or the probability that a loss has occurred or will occur” (Broder, 2006, p. 3). Businesses and organizations all across the country have risk management programs in place to help minimize losses. Risk most often is associated with occurrences that have an undesirable outcome; referring to any potential hazard that a justice organization can suffer from. These are generally associated with three types of risk: personal, property, and liability (Broder, 2006). Justice organizations can be susceptible to human error, fraud, employee misconduct, environmental disasters and they need to be prepared by establishing a thorough risk management program that will help them answer the three most common questions:
1. What can happen?
2. How can it be prevented or how can we respond if it does?
3. If it does happen, who is going to pay for it?
Risk Analysis and Assessment
In preparing for a risk management program risk analysis must first be performed. This is a tool used by management to determine losses in whatever standard is acceptable or unacceptable by the organization. “This is process of distinguishing which risks can affect a business or institution, and who will be affected by the potential disastrous outcomes. Identification can involve various methods of analysis, depending on the situation or industry” (Risk Management, 1999).
Risk analysis is accomplished by performing various tasks;   the organization must first establish what assets might need to be protected. This could be people, money, products or processes. Secondly, identification of perils must be established; what kinds of things could happen within the organization? Certain types of perils could include employee misconduct, theft, fires, or any other kind of negative...