Wednesday, March 28, 2018

24-Risk Management

What is a Risk Management?
A Risk Management, or Risk Management Process, describes the steps you need to take to identify, monitor and control risk. Within the Risk Management Process, a risk is defined as any future event that may prevent you to meet your team goals. A Risk Management Process allows you to identify each risk, quantify the impact and take action now to prevent it from occurring and reduce the impact should it eventuate.
When to go for Risk Management Process?
You use a Risk Management Process whenever your ability to meet your objectives is at risk. Most teams face risks on a regular basis. By putting in place Risk Management Process, you can monitor and control risks, removing all uncertainty. The Risk Management Process involves running risk reviews to identify and quantify risks. The risks are then documented and the Risk Management Process helps you take action to reduce the likelihood of them occurring. This Risk Management Process helps you put in place the right processes for managing risk today. By using Risk Management Process to monitor and control risk, you can ensure you meet your team objectives.
Risk Management Process helps you: 

  • Identify critical and non-critical risks
  • Document each risk in depth by completing Risk Forms
  • Log all risks and notify management of their severity
  • Take action to reduce the likelihood of risks occurring
  • Reduce the impact on your business, should risk eventuate

Most teams are subject to constant risk of meeting their objectives. The key to success lies in how you manage risks, by putting in place a clear Risk Management Process. This process help you to meet your team goals more easily.

Risk assessment form is one of the tools for Risk Management. It helps you document and raise risks to an organization. The Risk Form includes all of the content needed to help you describe the risk in depth, as well as rank its likelihood and impact. This form enables you to identify actions that prevent the risk from occurring, as well as actions that minimize the impact should it eventuate. This form can be completed by any member of your team, and is usually reviewed by management.

The Risk Management Form must contain

  • Part of the business or project that has identified the risk
  • Nature of the risk and who is likely to be affected
  • Likelihood of the risk occurring
  • Impact of the risk should it eventuate

Alternatively, you may maintain a Risk register, which contain details of all the risks identified.