Risk Management System in an organization at a glance

Change Management is the discipline that guides how we prepare, equip, and support individuals to successfully adopt a change to drive organizational success and outcomes
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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 influenced 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 influenced by the project team.)

Unforeseeable contingency

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

Clients inputs

  1. Define requirements
  2. Dependence

Note: The internal and 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 connected
  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 extensible 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 ascertained:

  1. it meets the importance and seriousness of the 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 involved in tackling risk response planning:

  1. Mitigation
  2. Acceptance
  3. Response plan
  4. Agreements
  5. Modified project documents
  6. Avoidance
  7. Transfer
  8. Contingency
  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

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