Tips for a Full Risk Management Process

Tips for a Full Risk Management Process

Tips for a Full Risk Management Process
 Tips for a Full Risk Management Process

Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risk management’s objective is to assure uncertainty does not deflect the endeavour from the business goals.
Risks can come from various sources: e.g., uncertainty in financial markets, threats from project failures (at any phase in design, development, production, or sustainment life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. There are two types of events i.e. negative events can be classified as risks while positive events are classified as opportunities. 
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Several risk management standards have been developed including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards. Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety. 

What is a Risk Process?

A Risk Process, or Risk Management Process, describes the steps you need to take to identify, monitor and control risk. Within the Risk Process, a risk is defined as any future event that may prevent you to meet your team goals. A Risk 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 do I use a Risk Process?

You use a Risk Process whenever your ability to meet your objectives is at risk. Most teams face risks on a regular basis. By putting in place this Risk Process, you can monitor and control risks, removing all uncertainty. The Risk Process involves running risk reviews to identify and quantify risks. The risks are then documented and the Risk Process helps you take action to reduce the likelihood of them occurring. This Risk Process will help you put in place the right processes for managing risk today.

This Risk 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
  • Lists all of the risk procedures in depth
  • Includes a diagram explaining the risk process
  • Tells you how to identify, monitor and control risks
  • Helps you mitigate risk through best practice processes

This Risk Process is different, as it:

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 describes the steps taken to mitigate risk as it occurs, helping you to meet your team goals more easily.

What is a Risk Plan?

A Risk Plan helps you to foresee risks, identify actions to prevent them from occurring and reduce their impact should they eventuate. The Risk Management Plan is created as part of the Risk Planning process. It lists of all foreseeable risks, their ranking and priority, the preventative and contingent actions, along with a process for tracking them. This Risk Plan template will help you perform these steps quickly and easily.

When do I use a Risk Plan?

A Risk Plan should be used anytime that risks need to be carefully managed. For instance, during the start up of a project a Risk Plan is created to identify and manage the risk involved with the project delivery. The Risk Plan is referred to frequently throughout the project, to ensure that all risks are mitigated as quickly as possible. The Risk Plan template helps you identify and manage your risks, boosting your chances of success.

This Risk Planning will help you to:
  • Identify risks within your project
  • Categorize and prioritize each risk
  • Determine the likelihood of the risks occurring
  • Identify the impact on the project if risk does occur
You can then use this Risk Plan template to:
  • Identify preventative actions to prevent the risk from occurring
  • List contingent actions to reduce the impact, should the risk occur
  • Schedule these actions within an acceptable timeframe
  • Monitor the status of each risk throughout the project
Creating a Risk Management Plan is a critical step in any project, as it helps you to reduce the likelihood of risk from occurring. Regardless of the type of risk, you will be able to use this template to put in place processes and procedures for reducing the likelihood of risk occurring, thereby helping you to deliver your project successfully.  The following ten tips will help you to perform Risk Management more rigorously and effectively for your project.
  • Plan for risks. Create a Risk Management Plan to ensure that describes how you will identify, analyze, respond to and monitor project risks.     
  • Perform Risk Reviews. These reviews are meetings between key members of the project team to monitor and control risks within the project. At each review meeting, the current risks should be assessed and any new risks will be raised for consideration.     
  • Use Risk Forms. Every time you identify a new risk within the project, you should document it by completing a Risk Form. This form helps you to fully describe the risk and rate its likelihood of occurrence and impact on the project should it actually eventuate.     
  • Identify the Risk Priority. For each risk raised, you should calculate the overall priority of the risk by summarizing the likelihood and impact rating scores previously assigned     Create a Risk Register. The Risk Register (or Risk Log) contains the actual risks of your project. By recording the details of all risk forms in a Risk Register, you will be able to monitor and track risks and their priorities quickly and easily each week.     
  • Report High Level Risks. You should report all high level risks to the sponsor to ensure they are kept fully informed of the overall risk status of the project. This also helps them to share in the ownership of key risks which may severely impact the project.     Assign Risk Actions. Once each risk has been reviewed and its priority determined, you should assign the actions needed to avoid, transfer or mitigate it. Each action identified should be assigned to a project team member to carry out.     
  • Monitor Changes. Many risks change in nature over time. Make sure that you review the status of each risk weekly to ensure that it has not suddenly increased in priority and need urgent attention.     
  • Share the Work. Make sure that you gain the full buy-in of all of your project team members to help identify, monitor and control risks successfully throughout the project.     
  • Assign Risk Roles. Identify and list the responsibilities of team members, Project Managers and the Project Board for managing risks within the project. 
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The Author: Ala'a Elbeheri
                                          Ala'a Elbeheri
A versatile and highly accomplished senior certified IT risk management Advisor and Senior IT Lead Auditor with over 20 years of progressive experience in all domains of ICT.  
• Program and portfolio management, complex project management, and service delivery, and client relationship management.      
• Capable of providing invaluable information while making key strategic decisions and spearheading customer-centric projects in IT/ICT in diverse sectors.   
• Displays strong business and commercial acumen and delivers cost-effective solutions contributing to  financial and operational business growth in international working environments.      
• Fluent in oral and written English, German, and Arabic with an Professional knowledge of French.  
• Energetic and dynamic relishes challenges and demonstrates in-depth analytical and strategic ability to facilitate operational and procedural planning.  
• Fully conversant with industry standards, with a consistent track record in delivering cost-effective strategic solutions.    
• Strong people skills, with proven ability to build successful, cohesive teams and interact well with individuals across all levels of the business. Committed to promoting the ongoing development of IT skills  throughout an organization.

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