The Need for Change Management
In the contemporary business environment, organizations fight the battle of competition by building their adaptive capabilities and preparedness for coping against the pressures of change. In the present scenario, top management give a lot of importance to change management process and the need for being flexible as well as adaptable for tackling the growing environmental […]
Reinsurance Policy Coverage: Advanced Scenarios
In the previous article, we have already seen that the scope of coverage of reinsurance policies can become quite complicated and open to interpretation. We now know that reinsurance policies are covered under three main different terms and conditions. However, over the years, there have been some complications have arisen in these different types of […]
Importance of Negotiation in Daily Life
Conflict has never benefitted anyone, instead it adds to one’s tensions and anxiety. It is better to discuss things and reach to an alternative benefitting all. Issues must not be dragged unnecessarily and efforts must be made to come to a conclusion involving the interests of all. No point in being adamant and rigid. One […]
Creating Sustainable Change – How to create and sustain change?
Who doesn’t like change and who doesn’t want to change? These are certainly truisms in the 21st century landscape where businesses proclaim their commitment to change and exhort their employees to “Be the change you want to see”. However, having a vision and mission statement that commits to change is different from actualizing the change. […]
Importance of Effective Communication in Building High-Performance Teams
If proper procedures are the foundation of a high-performance team, then clear and open communication is the roof. Clear and honest communication between the team members and the management is the backbone for the survival of a high-performance team. It acts as a glue that binds all the team members together. Effective communication helps in […]
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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