Task for the seminars:

Each student will select for the list of essays a topic and at the scheduled date will prepare
an essay and a PPP presentation.
The essays will have minimum 4 pages, will be prepared based on the minimum of 1 article
identified using the ANELIS platform. The essays must have an individual title and the
next structure:

1. The argumentation for selecting minimum 1 analyzed article under the selected
topic
2. The main ideas presented in the article in the Introduction part
3. The relevant elements in relation with the topic of the article followed in the
literature part
4. A detailed presentation of the model(s) used in the article
5. A presentation and personal comments on the data set
6. A presentation of the main findings and conclusions in the article
7. An extended part related on personal comments about the interest and possible use
of the findings and conclusions of the articles for you in term of new knowledge and future
research

The presentation will be done in the session at the scheduled date for a duration of
maximum 6 minutes. The professor and the colleagues will critically judge your
presentation.
Introduction :
Risk Identification is the first step in any risk management activity or any measures related to
risks . Because the world is in a continuous movement , changes appear from all corners which
mean a new environment to comply with . A new environment implies an increase in uncertainty
about business and public organizations . Keeping updated to the globalization and business
cycle, raises the need of new incentives which may different have outputs . The possibility of
these outputs occurring determines the appearance of risks in any organizational activity . Due to
risks , any organization has a risk management department which identifies , evaluates and
controls risks both at internal and external level . Risk management has become an essential
element of an organization and its main goal is to help other management activities to reach the
aim of the organization directly and efficiently . Risk management is a continuous process that
depends and complies with the environmental changes for internally and externally activities . It
requires precise and continuous attention for identification of new risks . This article presents
the key roles of Risk Identification in Risk Managements and its basic terms used to characterize
the risks and the general approach .

Why Risk Identification ?

Risk Identification is the first step in Risk management activity because it develops the
base for the next steps to follow : analysis and control of risk management . The correct
identification of risk ensures the effectiveness of risk management . If the organizations
doesnt identify all possible opportunities of risk , for gaining or loss , it will not be able
to develop a strategy for controlling the possibilities of gaining or losing . Gain and loss
are both potential challenges for the company and if not identified , they cannot be
managed properly . As Dickson and Hastings said , missing a good positive opportunity
that a company seeks is a problem equal to bearing losses .

Risk Identification has to be approached at different levels to be able to see the big
picture with the threats and opportunities that are surrounding the goals of the
organization . According to the article there are 3 basic question to address :

1. How can the resources of the company can be threatened ?

2. What adverse effect can prevent the organization from achieving its goals ?

3. What favorable possibility can be revealed ?

Starting the process with these basic questions is a good way to initialize the
implementation along with a very good understanding of the companys organizational
levels : administration , R&D , technological , financial , accounting etc. Having the
necessary information , it will be easier to discover where a peril could occur , how an
action can develop a hazard . It will enable the managers to see not only internally
challenges , but also the outside environment and who and at what extent the
organization can be threatened . Anyway the theories seem simplier when not applied to
reality . In reality it is very hard to collect the complete information and is very time
consuming.

Overall , Risk Identification is a process that determines the possible organizational risks
and the conditions arising risks . Through Risk Identification , the company can evaluate
the activities which have vulnerabilities to risks . In the process there are some basic
elements : sources of risk, hazard factors , perils and exposure to risks .

Sources of risk are elements that surround the activity in the internal or external
environment and are able to positively or negatively affect the company . For example
the idea to product a new item is hardly influenced by the market conditions . Therefore ,
the competitors , the clients need , the availability of raw materials are all sources of risk
within only one decision . The risk depends on the way in which the product meets the
market demand the quality of the product and the time of release .

Hazard is a circumstance that increases the chances of loss and gain with higher severity .
An example can be the error of management team about the market expansion for a
product can lead to hazard factors and determine systemic risk .

Peril is an element close to the meaning of risk . Its effect is always harmful , with
negative implications and non-profitable . Peril is the cause of loss , and is unforeseeable
which lead to unpredictable losses . For example , car accidents , air-crafts crash , fire etc.
An important detail about the peril is that it always causes losses .

These definitions give a

clear image of what a risk
manager has to take into
account when investigating
risks and it is a starting
point for analyzing possible
danger to the resources .