Service Overview
Risk management is the process of identification, analysis and either acceptance or mitigation of uncertainty in decision-making. Essentially, risk management occurs anytime an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment and then takes the appropriate action (or inaction) given their investment objectives and risk tolerance.
Risk is the main cause of uncertainty in any organisation. Thus, companies increasingly focus more on identifying risks and managing them before they even affect the business. The ability to manage risk will help companies act more confidently on future business decisions. Their knowledge of the risks they are facing will give them various options on how to deal with potential problems.
Risk management is important in an organisation because without it, a firm cannot possibly define its objectives for the future. If a company defines objectives without taking the risks into consideration, chances are that they will lose direction once any of these risks hit home.
Key Benefits
- Plans: Risk management plans contribute to business success by establishing a list of internal and external risks. This plan typically includes the identified risks, probability of occurrence, potential impact and proposed actions. Low risk events usually have little or no impact on cost, schedule or performance. Moderate risk causes some increase in cost, disruption of schedule or degradation of performance. High risk events are likely to cause a significant increase in the budget, disruption of the schedule or performance problems.
- Preparation: To ensure that business runs smoothly, effective managers communicate their plan to the business sponsors, stakeholders and team members. This sets expectations to people who provide funding and are affected by the outcomes. It ensures that the business runs smoothly so one step proceeds to the next without disruption. By identifying, avoiding and dealing with potential risks in advance, you ensure that your employees can respond effectively when challenges emerge and require intervention.
- Results: By defining risk management processes for your company, you make success more likely by minimizing and eliminating negative risks so business can be finished on time. This enables you to meet your budget and fulfill targeted objectives. When you don’t have risk management strategies in place, your business get exposed to problems and become vulnerable. Effective risk management strategies allow your company to maximize profits and minimize expenses on activities that don’t produce a return on investment. Through detailed analysis, effective leaders prioritize ongoing work based on the results produced, despite the odds.
- Evaluation: To evaluate your business’s success so you can use the best practices on your next challenges, assess the impact of your activities on mitigating exposure to problems and exploiting opportunities that capitalize on your company’s strengths. For example, if you develop and deliver a training program that creates awareness about internet security, including phishing, viruses and identity theft, measure the number of help desk calls received about these problems. If they go down, you can reasonably assume your risk management initiatives have contributed to success. If not, revise your training program.
Objectives
Risk management applies from the strategic, operational, programme and project perspectives.
The approach to the management of risk can be common across all of these perspectives but risk management procedures should be tailored to suit each one.
This service helps you how to keep all risks
- Identified This includes risks being considered that could affect the achievement of the business’s objectives, and then described to ensure that there is a common understanding of these risks,
- Assessed This includes ensuring that each risk can be ranked in terms of estimated likelihood, impact and immediacy, and understanding the overall level of risk associated with the business, and
- Controlled This includes identifying appropriate responses to risks, assigning risk owners, and then executing, monitoring and controlling these responses.
To Whom?
The beneficiary of this service is one of the following roles:
- Program Heads
- Portfolio Managers
- Strategic Roles
- Business Leaders
- Enterprise Architects
- Project / IT managers
- IT / Business Analysts
Deliverables
- Enterprise Processes Assessment
- Risk Management Strategy
- Risk Register and
- Risk Report.