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By adopting a robust risk review and management process at the early stage of the project life cycle, there are definite benefits in the later stages. The potential to influence change and address potential issues at the early stages of a project are far greater, with real net benefit at the later stages. The advantage of the qualitative approach is that as the process is based on the specific project, and is managed and coordinated by the project team, a regular update and review of the risk registers and the risk management plans provides a useful means of conducting project health checks.
Monitoring progress of mitigation plans for high risk / high impact items provides insight into the effectiveness of the management plans and may give early warning that alternative risk management plans may be required.
Comprising of 5 steps:-
The process of executing projects, and managing change, is to make decisions, with the intension of reaching the end goal. The decisions made throughout this process are ideally based on having a high degree of certainty on the outcomes of the various phases, stages and processes. The higher the degree of uncertainty in the available information, the greater the degree of associated risk.
Risk Identification and Management is increasingly recognised as important business drivers whilst stakeholders have become much aware of the impact of risk.
Risk must play a part as a key driver of strategic decisions, as risk, if left unattended may be a cause of uncertainty in the organisation or endeavour or it may simply be embedded in the activities of the organisation.
Implementing a comprehensive, be-
Risk Management Principles:-
By applying proven risk management processes and principles to the strategic planning and project initiation and execution stages, 2m-
Asset and Liability Restructuring
Strength and Weakness Analysis
Leverage Opportunities and Mitigate Threats
With a clear definition of scope, plan, strategy, budgets, resources, aims and objectives, the project can then be framed, and within the context of the specific project, areas of risk can be clearly identified. Once these risks, or opportunities, are identified, a process of assessment, review and management can be implemented.
The two approaches to risk management are Qualitative and Quantitative.
Risk Analysis : Identification, Assessment, Mitigation