Three Simple Steps to Risk Management

"All project management is risk management"

(Eric Verzuh)

Risk management is a core activity in any project or organization. The risk M_o_R (risk management, OGC methodology) determines the uncertainty of the output. The risk manager addresses the risks (unusual problems and accidents), the occurrence of which would affect the product or services that the organization provides.

The M_o_R framework provides three basic steps to effective risk management that can be applied in an organizational or project environment:

o Identifier

The first step is risk identification. This includes the risks that may affect the achievement of the goals and may identify and describe the common understanding of the risks between the body or all eligible persons involved in the project.

Techniques for identifying risks depend on the organization's size and structure, the nature of the activity or project, and the experience of the risk management group. For example, a small risk management within a software program could include brainstorming and discuss potential risks of the project based on the expertise of the developers concerned. However, a large government body can rely on the experience of experts who deal with similar risks with similar organizations. Project managers responsible for technical risks may ask the experts to lift the relevant risks.

o Assessment

Evaluation is critical to success. Without a critical analysis of the risks identified in the first step, the risk manager can underestimate the potential impact of a particular risk or try to overcome each risk (also financially) without considering whether there is a risk.

Two factors to be taken into account in the risk analysis:

– Probability
– Potential Impact

Persons responsible for risk management should be aware of the organizational context of the risks. For example, the risk may have a greater impact on Output 1 than the B risk on Output 2. However, if output 2 is more important than output 1, risk B is more important than risk A.

Directity, impact, and organizational context ranking decisions allow a risk manager to prioritize and plan to control individual risks.

o Control

The risk manager must determine the appropriate response to a risk and should divide a risk manager to ensure that the risk assessment is performed, supervised and verified.

Source by sbobet

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