Project Risk Management

No matter what you do in life, there are always risks. And this is a good thing, because without risk, there is no potential reward. However, there are so many possible risks that we never have enough time to consider all of them. Enterprise risk management must thus evaluate and prioritize risks based on a two-factor scale – according to the impact of the risk if the undesired event did take place and the likelihood of the event. Such model risk management systems display risk prioritization in the form of a chart. An event that is highly likely to occur but which would bear a low impact would grade as a medium overall risk, as would a low likelihood event with a massive impact. 

Risk Management Framework

That’s why risk management solutions by organizations which are well versed in this subject and specialized in considering all potential losses and gains that could be planned for stand to greatly benefit companies. Innovative risk management is a field of business that continually develops various methods that require maximum compliance in order for them to work. Systemized computer programs that provide immediate updates that all managers can see help hold employees accountable. But any unified effort toward reducing these risks would be in vain without the establishment of a well-defined risk management policy. In addition, such risk management services with respect to certain types of employees in a company could be particularly relevant, while irrelevant to other types of employees. For instance, a salesman of a printers company that uses leads generated by the company would be a risk if he took those same leads over to another company or sold them to them. This is not as risky for a technician at that company. Each of these positions could have specific procedures and policy designed for them and if training programs are designed to ensure certain types of employees’ awareness with respect to issues relevant to their positions and employees thoroughly confirm their agreement to follow these procedures, the company will render itself much safer from risk.

Of course, risk management also involves potential damages to the community, the environment, and our partners. We must make sure to account for third party risk management as well. On one hand, this is in the interest of vendor risk management, so that our actions do not lead us to become liable for violations of agreements with partners. In other words, if an app developer has a special agreement with Apple, it would be required to refrain from recommending any Microsoft products. Then, there is also the issue of governance risk management and compliance. The government is required to protect society from destructive influences, including smog in the event of factories producing products, such as air ducts. Strict regulations such as these could potentially leave a company vulnerable to fines or lawsuits as a result of just a single violation. Therefor, corporate risk management requires stringent compliance with policy and the more policy that has been written out and the more employee training that is conducted on it, the better, and the safer employees are as well.

Another important component of the risk management process, in addition to securing the company from outside attackers, is ensuring that in-house employees do not fall victim to malicious internet schemes or become consumed by their own emotions. This also extends to risk management in project management with respect to quality. Customers grow accustomed to a certain quality level and one unhappy customer giving bad reviews can result in a much greater number of customers forever holding a negative view of the company.