Adjusting to Changing Organization Culture
The work culture represents the ideologies, principles, policies and beliefs of the organization. The individual’s style of working, his behaviour and ways of interaction also contribute to the culture of the organization. There are several reasons which lead to a change in the organization culture. Change in management, poor financial conditions, revisions in goals and […]
Leadership for the 21st Century
The previous articles discussed the importance of transformational leadership in the corporate world. This article looks at the traits and attributes needed in the 21st century business landscape. Though the article on transformative leadership touched upon several aspects of leadership in the contemporary times, this article expands on it by including the role of ethics […]
Operational Risk: Definition and Drivers
In the previous few articles, we have studied about the concepts of risk management in general. However, merely understanding general risk management is not enough for modern-day risk professionals. The challenging environment of today requires people to specialize in the different types of risk management. Out of all the different types of risks that are […]
Enterprise Risk Management (ERM) vs Traditional Risk Management
Enterprise risk management (ERM) is a buzzword that has been doing rounds in the risk management field for the past few years. It is often used by managers in a context that implies that it is wider in scope than the traditional risk management function. However, the number of risk management professionals who do not […]
Internet and Email Etiquettes – Netiquette
Etiquette helps individuals behave in a socially responsible way. In simpler words, etiquette transforms a man into a gentle man. Remember employees need to behave sensibly and appropriately to make their position secure at the workplace. No organization likes to have someone who lacks etiquette. Respect the place where you earn a living for yourself. […]
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.
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