Articles

Successful Risk Management Strategies

by Arthur L. GRC analyst

Some data from recent research shows what dangers concern executives at large companies: talking about “risk” immediately leads them to think about cyber-attacks, delays, financial and asset losses, competitive issues and, in extreme cases, reputation stains. 

But it is worth remembering that there are also positive and beneficial risks. The word "risk" presupposes any event that may affect the functioning of your project for good or for bad. In both cases, you must be prepared to make early decisions. 

So, the first thing to do is to survey all possible threats. By considering the potential positive and negative effects, a good risk  control self assessment strategy can then be initiated. So that nothing escapes, brainstorm with the whole team, ask for opinions and research. The important thing is that no point, however small and absurd it may seem, goes unnoticed. 

After that, separate those that seem most likely to you and choose the best way to deal with each one. See the possibilities: 

Accept some risks 

To accept a risk is to assume that it exists and move the project forward. This type of posture is usually adopted when the project manager assesses that, if the risk is confirmed, its effects will not be significant compared to the benefit that the project will bring. In addition, there may be many dangers and, for the sake of improving your actions, you decide to take even medium and high risks. 

Avoid any kind of risk 

This is the opposite of the previous one. By avoiding a risk, you change one point in the strategy so that the possibility of that risk being confirmed reaches zero. If we think about it, it is an extreme measure and, to a certain extent, conservative, since every project involves some risk - and without running them it is impossible to put good ideas into practice and implement innovative solutions. 

However, it is interesting to leave this type of option to the last case, when you assess that the impact of the risk is negative or that the benefit of the project's success is very small. They can be avoided, too, when certain stages of the projects ar


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About Arthur L. Freshman   GRC analyst

9 connections, 0 recommendations, 42 honor points.
Joined APSense since, December 11th, 2019, From Austin, United States.

Created on Mar 30th 2020 07:17. Viewed 367 times.

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