Risk management system in an organization at a glance

risk management

Risk management is the identification, assessment, and prioritization of risks 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 in general- influences the project purposes positive or negative if it occurs such as:

  1. Positional (depends on the project)
  2. Interdepending
  3. Size-depending (e.g effect size on the sales)
  4. Value-based (avoid/search-firm person e.t.c)
  5. Time-based

Areas of the Risk management

  1. Risk management planning
  2. Risk identification
  3. Qualitative risk analysis
  4. Quantitative risk analysis
  5. Risk response planning
  6. Risk monitoring and control

Types of Risk i.e Internal risk versus external risk

Internal Risk (factors that can be influence by the project team.)

Technology

  1. -New, not tested technology
  2. -Availability of technical people
  3. -Design
  4. -Gentlemen tailor tasks
  5. -Availability of other materials

Financial

  1. Estimating

Timing

  1. -Available resources
  2. -Barriers facilities
  3. -Dependence (client, subcontractors)

Legal

  1. Owners right
  2. Forfeit
  3. Guarantees

External Risk (factors that can be influence by the project team.)

Unforseable contigency

  1. Natural risk
  2. Change on the market
  3. Inflation
  4. State of interventions

Clients inputs

  1. Define requirements
  2. Depedence

Note: The internal and the external risk factors should be identified (in advance and continuously).

Risk identification

  1. Realization team
  2. Experts (internal, external)
  3. Lawyer
  4. Final consumer
  5. Decision maker
  6. Project manager
  7. Buyer manager
  8. Financial expert

Means and techniques applicable for Risk identification are listed below:

  1. Studying the documents conected
  2. Fishbone analysis (caused and effect diagram)
  3. Brainstorming techniques
  4. System and process diagrams e.t.c
  5. Interviews
  6. SWOT analysis

Risk analysis

The concrete risk events that can be measured:

  1. Probability %
  2. The effect is expensible in HUF/$ (risk cost) classifying systems e.g
  3. Low                1-3% (of delivery)
  4. Medium        3-8%
  5. High                8-15%
  6. Very high      15-25%

Risk response planning:

The process of risk respond planning is adequate, if the following listed below can be ascertain:

  1. it meets the importance and seriousness of risk
  2. it is cost effective in connection with the set task
  3. it is well timed
  4. it is realistic in the given project
  5. it is based on common agreement
  6. it has a particular person responsible

The following listed points are  opportunities and techniques that can be involve in tackling risk response planning:

  1. Mitigation
  2. Acceptance
  3. Response plan
  4. Agreements
  5. Modified project documents
  6. Avoidance
  7. Transfer
  8. Contigency
  9. Fallback
  10. Contigencí allowance/reserve e.t.c
  11. remaining risk
  12. Secondary risk
  13. Composed risk reserve
  14. Changes in the joint processes.

Thank you

You can see more  of our management training materials and audio recording in the below link: http://www.dumexbusinessconsulting.com/dbc-training-modules/

About the author: Abraham D.

5 comments to “Risk management system in an organization at a glance”

You can leave a reply or Trackback this post.

  1. icc t20 world cup 2016 - February 16, 2016 at 5:53 pm Reply

    That is very attention-grabbing, You’re a very skilled
    blogger. I’ve joined your rss feed and sit up for in the hunt for extra
    of your wonderful post. Also, I’ve shared your web site in my social networks

  2. cs go skins for paypal - March 19, 2016 at 6:15 pm Reply

    Wow because this is really good work! Congrats and keep it up.|

  3. nba 2k16 mt glitch 2016 - March 22, 2016 at 11:00 am Reply

    Wow because this is really good work! Congrats and keep it up.|

Leave a Reply

Your email address will not be published.