RISK MANAGEMENT: A TOOL FOR APPRAISING THE UNCERTAINTY ENVIROMENT IN AN ORGANIZATION (A STUDY OF PATERSON ZOCHONIS INDUSTRIES PLC. ABA, ABIA STATE)

ABSTRACT Risk management has become a subject for discussion in every organization. Therefore, the research project has been done with the aim of determine how risk management affects operational activities of the organization and the researcher's attempt at finding how risk and uncertain environment can be properly managed. Also, this study reviews the crucial role of risk management and uncertain environment in management decision making. However, the study had disclosed how risk management helps in efficient and effective running of the organization. Therefore, the stages that are involved in risk management includes: identification, evaluation and risk control. Risk identification attempts to identify all the possible outcomes that may eventuate from a particular action. Risk evaluation is concerned with judging the significance and acceptability of risks and should include consideration of risk perception and risk benefits studies. While risk control involves finding ways to eliminate, reduce, mitigate, transfer or simply learn to live with risk. Some of the findings include: that the control of risk occurrence has improved the profitability of the organization. It is a/so discovered that the knowledge of risk management and uncertain environment help in the efficient and effective management of an organization. It is disclosed that investment risks, exist because of the inability of the decision makers to make perfect forecasts. Therefore, the organization should have sufficient number of risk managers controllers in the organization in order to minimize risk frequency. It is clear from the foregoing that risk management and uncertain environment is an indispensable ingredient for efficient, effective and successful performance of an organization.