RISK MANAGEMENT



Risk Management

Risk Management

Introduction

Risk is the degree of probability that the possible outcomes of a particular course of action will occur. And management is the planning, organizing, leading and controlling of human and other resources to achieve organizational goals efficiently and effectively. If we combine the two terms together we have risk management. The term risk management is applied in a number of diverse disciplines. People in the fields of statistics, economics, psychology, social sciences, biology, engineering, toxicology, systems analysis, operations research, and decision theory, to name a few, have been addressing the field of risk management.(COSO, 2004: 9)

In order to have a good risk management program in place, the first step is to establish the purpose of the risk management program. By determining its intention before initiating risk management planning, the organization can evaluate results to determine its effectiveness. Typically, the executive director, with the board of directors, sets the tone for the risk management program. The second step is to assign responsibility for the risk management plan. While the team is primarily responsible for the risk management plan, a successful program requires the integration of risk management within all levels of the organization.

Gantt Chart

TASKS

WEEKS

1

3

5

7

9

11

13

15

17

19

21

23

25

27

29

31

 

Construct research proposal

 

Draw up questionnaires

 

Submit proposal

 

Timetable interviews

 

Begin interviews, observations, focus groups and hand out questionnaires

 

Analysis and redefine problem(s)

 

Implement findings

 

Prepare draft report

 

Begin full data analysis

 

Write 12,000 word dissertation

 

Discussion on Gantt Chart

Effective risk management can also be achieved by integrated management, ensuring risk management an integral and vital part of project management also by adapting risk management methods and tools to a project's infrastructure and culture. By continuous process which is sustaining constant vigilance, identifying and managing risks routinely through all phases of the project's life cycle. By shared product vision which is mutual product vision based on common purpose, shared ownership, and collective communication and ...