Risk Management

Consider These 7 Factors for an Effective Risk Management Process

As a project manager, you are used to working on risk management. However, new risks are discovered every day and you cannot follow the same model again. In this article at Ten Six Consulting, find out the 7 factors that you should consider for an effective risk management process.

De-risking Risk Management

You must proactively work on risk management to avoid unwanted issues in your projects. Following are the 7 factors to consider for an effective risk management process:

Implement It Across the Enterprise: Implementing risk management in pockets never helps. Talk to all the departments and investigate all the processes. Senior management is slowly warming up to the idea nowadays. Conducting an enterprise-wide risk management process should not be a problem.

Go Through All the Risks: Though financial risks are the major roadblocks for companies, strategic and operational risks too can be threatening. So, categorize all the risks and go through them one by one. Create a clear definition of the risk categories to handle them better.

Prioritize Where Required: You cannot deal with all the risks so prioritize the ones that need immediate attention. Involve the upper management to speed up approvals in the risk management process. Ask project managers and program managers to work on risks that relate to their projects.

Accumulate All: Working in isolation can lead to duplicated efforts and wasted time for the same risks and issues. Gather all the risks and create a profile to understand their impact on a granular level.

Communicate Without Inhibition: As told earlier, isolated efforts can never give the best results. Communicate cross-functionally to identify common risks. This can save you from mitigating risks even before they occur.

Have an Action Plan: Just logging risks will not help. Sketch out an action plan. Sit with other departments or business units, if required. Find out how they addressed risks. For new risks, conduct brainstorming sessions among affected teams.

Encourage Informed Decision-making: Instead of merely reporting the risks, create a risk map as well. This time-saving effort will allow the upper management to assign the right resource or team faster.

To view the original article in full, visit the following link: https://tensix.com/2018/12/7-key-criteria-for-successful-risk-management/

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