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Key to effective risk management is ownership. Risk identification, analysis and resolution needs to be owned up by the project team and accountability needs to be defined with realistic timelines. In order to manage these, we should,
1. Build risk management framework as part of the project initiation covering the identification, analysis, resolution, reporting and escalation mechanisms
2. Create a risk log and initiate risk management forums (working groups) with the customers, stakeholders
3. Dedicate pre-defined time in the project working groups to identify new risks, updates/changes to existing risks and changes/updates to the resolution required for the risks
4. Use risk management forums to analyse risks, impacts (possibility and consequences) and course of actions if it materializes or prevention of occurring. Take expert advise from the stakeholders while deciding on each risks
5. Periodic reporting of risk log to stakeholders and management in order to keep them abreast of situations and seek support in navigating through these
6. Close resolved risk promptly and identify any residual risks arising post closure to keep a hindsight on the outcomes
7. Risk management is an ongoing process and the project manager should build this as a capability to ensure stakeholders think through for identification of the risks at the right time. Project Manager should continue to push the stakeholders even if it gets repetitive. Timely identification can save a lot of time, resources and costs for the projects
8. Over communication is often good during risk management :)
7 steps to effective risk management
1. Implement a framework for risk assessment and planning.
2. Outline the responsibilities of risk managers with their respective fields.
3. Identify and define the risks to which the business is exposed and how to map incidents.
4. Determine the threat level and focus on the risk that has the greatest potential to affect enterprise performance.
5. Establish levels of controls for processes commensurate with the perceived threat.
6. Record and retain risk incident and near-miss information.
7. Conduct periodic risk assessments to control changes in your company’s risk profile and assess performance.
First of all know the type of risk and then do the proper arrangement to resolve the risk.
There are5 main steps to manage the risk:
1. Identify the risk and evaluate the probability of its realization, consequnces, and determine your maximum loses
2. Choose the methods and instruments of managing of idetifying the risks
3. Design the risk-strategy to reduce the likelihood of risk realization and minimize negative effects
4. Realization the risk-strategy
5. Evaluate achived result and then correct if something done wrong
It should be emphasized that Choosing the methods and instruments of managing risks is the key step
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