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7 Ways to Level Up Your Risk Management

The line between success and failure can be thin. Even when you have success, it may be attained with certain havoc. If you strive for big goals in business, you have to accept the fact that there are always risks involved and be ready for them. Risk can be hard to spot, let alone prepare for and manage it. The worst thing is if you’re hit by something that you haven’t planned for; costs, time, and reputations are on the line. Elizabeth Harrin offers a few suggestions to better manage risks at the PM Perspectives Blog:

  1. Clarify roles and responsibilities.
  2. Communicate risk appetite.
  3. Review risk identification processes.
  4. Know your success factors.
  5. Get a budget for risk.
  6. Update your business case template.
  7. Aggregate risks.

Ward Off Uncertainties

Don’t sit back and wait for bad things to happen and panic. Always anticipate the worst scenarios and have plans to both avoid and handle them. Most risks can be reduced when employees are aware of their roles and the seriousness of their tasks to the company. When they know what they need to do with their job, they will naturally know what parts of their job contains the most risks. Each company also takes a different approach in solving problems and controlling risks, so make sure that you and your employees are educated about it.

Detecting risks in early stages, having a financial plan, and reporting to your executives about the problems the company is facing are the next crucial steps in prevent any damage to be made. You should aggregate risks to deal with them at the same time to see the root of the problem as well. Harrin elaborates with this:

If you work as a project manager, aggregate the risks from your workstream leaders. At programme level, aggregate risks from all the projects. Above that, produce an aggregated view of portfolio-level risk.

Ultimately, you want to get to a point where the risks that are presented to the Board link tangibly back to what project team members are actually doing. That alignment will ensure a full picture that enables managers to spot trends. It’s useful because often big issues that hit companies severely are the result of several smaller problems all cascading and running into each other in a perfect storm.

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About My Nguyen

My is a staff writer for AITS. She has a varied background in writing and marketing, having previously worked for the World & Vietnam Report among others.

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