Why the Flood Insurance Market should be Privatized?
In the United States, the government of the United States is the biggest player in the flood insurance industry. This has been the case ever since the National Flood Insurance Program (NFIP) was created in 1968. Prior to 1968, many private insurance companies refused to provide private insurance to homeowners who had houses in flood-prone […]
Introduction to Group Behavior in Organizations
Introduction Humans are social animals and hence, form groups wherever they are. This is true for organizations as well as familial and friendship networks wherein people tend to congregate in groups and be governed by the norms and rules of the group. For instance, familial groups impose a certain way of behavior in us as […]
The Tough Get Going When the Going Gets Tough: Leadership in the Face of Adversity
Leadership in the Face of Adversity The best leaders are those who can face adversity and turnaround their companies from times of trouble to positions of strength. Throughout history, the leaders who were feted and achieved fame are those who took charge during times of crisis and managed to actualize victory. Similarly, in recent decades, […]
Self Motivation at Work
Self-motivation is a power that drives us to keep moving ahead. It encourages continuous learning and success, whatever be the scenario. Self-motivation is a primary means of realizing our goals and progressing. It is basically related to our inventiveness in setting dynamic goals for ourselves, and our faith that we possess the required skills and […]
Ethics in Sales and Marketing
Markets present a clash of interest between various players. There is competition for resources, customers and price etc, which breeds ground for activities that may not get ethical sanctions. A certain code of conduct, policies and practices called ethics are required to manage markets and marketing. Marketing is the heart of all businesses and all […]
Any project immaterial of the size of the same carries a lot of risks, which may be financial, non-financial, legal or physical.
Having an effective risk management plan is first and foremost to the success of any project. The task is to anticipate these risks well in advance before the project takes off.
A good risk management plan carries number of tools and strategies to mitigate risk. The strategy may be to avoid risk or transfer a component of it another project so that the impact is reduced.
Other risk management strategies may suggest the acceptance of the risk. This is decided after a thorough cost/benefit analysis. The risk management plan also depends on how the risks are prioritized by the organization.
Based on relative priorities risks are given weightage, for example a certain organization may be more concerned about the physical and legal risks, whereas another organization may be focusing on operational or strategic risks.
Risk priority defines the strategy and finally the plan.
Besides keeping the risk management cycle in mind; before the final draft, an effective risk management plan may traverse through following:
Enlist the categories of the project and then evaluate each for risks. For example there may be a cost category; determine the factors that may increase cost and make a list.
The formulation of the plan is in tandem with the risk management cycle which acts as the basic guideline. Both work in sync, in fact the interventions in step 3 discussed above cannot be without a thorough understanding of the cycle.
Your email address will not be published. Required fields are marked *
