Final answer:
Organization-wide risk management approaches risk with a broad view, focusing on potential threats and developing plans to mitigate them. It supports making thorough contingency plans for unlikely but impactful events while acknowledging the limitations, such as management's potential focus on strengths over weaknesses and the discomfort in addressing potential catastrophic outcomes.
Step-by-step explanation:
Organization-Wide Risk Management:
Organization-wide risk management is an approach that takes a holistic view of the risks facing an organization, rather than focusing solely on hierarchal roles or specific group issues. The strengths of this approach include a comprehensive consideration of potential threats, leading to the formulation of contingency plans for low-probability, high-impact events, similar to buying insurance.
However, it also has limitations, such as the potential of over-focusing on strengths and neglecting to improve weaknesses in management styles, or the discomfort in addressing the possibility of catastrophic outcomes, which may inhibit open discussions of risk. Recent shifts towards flat organizational structures encourage more teamwork and open communication, which can be beneficial in risk management. However, it is critical that challenges are properly identified and acknowledged before they can be mitigated.