Preparing Risk Management Guidelines Assignment

Preparing Risk Management Guidelines - Assignment Exampleated and stinting application of resources to minimize, monitor and control the probability and /or impact of unfortunate events (Howells & Schulze, 2009, p. 89). There are diverse causes of barter risks such as natural causes, financial risks, market risks, credit risks, accidents, legal liabilities, and projects failures among others. A wrinkle should have well defined strategies to manage and control various risks that may occur in business including the contractual and vicarious liabilities (Austen-Baker, 2011). The risk management guidelines will help the business management to establish resources for calculating and delivering professional and effective risk management strategies during execution of business its operations.The parties in a contract moldiness follow the right channel of communication in order to minimize liability. For example, if whatsoever conditions arise that makes degrade of the contractual dut ies impossible or delayed the party should communicate with the other party immediately and sum on the best course of action to take (Austen-Baker, 2011). The most common methods of managing risks in business includes deflect of risks, transfer of risk to a third-party such as insurance, reducing the negative impact of risks and acceptance of some or all consequences of risks (Stone & Devenney, 2014). The parties to the contract should do all they can to avoid the occurrence of risk during the performance of the contract. If one party failed to perform according to the contract and the other party had an opportunity to mitigate the exhalation suffered due to partial performance or lack of performance of the contract, both parties will be held responsible, and the pained will be liable for contributory negligence. The damages that the offender can pay in such a case are reduced by the amount of damage contributed by the offended person as stated in the case of Nettleship v Westo n 1971 2 QB 691 in which the trainee driver was held partly accountable