RISKS

Risks

Introduction

Risks to a project or business may require multiple reviews to determine which of them should be given more attention. Risk - that's what means the potential negative impact on the resource, or some characteristic value, and this effect may occur both during the current process, and in the future. In everyday life, the risk usually means the probability of loss. Because the risks directly associated with the losses, they should find the time and promptly resolve. I think the mention of the fact that ignoring the risks can lead to a decline in the company, is redundant, since it is quite obvious.

Some businesses can still do without the assessment and treatment of risks in the organization. We are so accustomed to the risks of everyday life, which often ignore the risks and miserable react only to large. Moreover, an effective risk management leads to losses, which, of course, being a customer-approved, lead to questions about how these costs can be reduced.

Discussion

Despite the fact that risk management is a new concept, now it is a new science. More and more organizations and businesses recognize the need to identify risks in order to be able to control or avoid them. Risks should be avoided when they affect people, environment and business. Avoiding risk can eliminate the possibility of large losses. The question is how to recognize and identify the specific set of risks deserve more attention. As with limited resources to determine what risks should have higher priority?

Risk Matrix is ??a tool for risk assessment, which involves some form of grading risks. It has a range of consequences and likelihood of the axes. The matrix shows the risk manager and the one who makes decisions clearer view of what are the risks that are involved in it (with respect to costs, changes in procedures, etc.) and how much time can be given, taking into account the severity of and the likelihood of risk. It can help a manager to provide a more organized format, the risks that it may encounter, prepare and adopt more correct decisions in the event of a risk. So how do you create an effective risk matrix?

The Risk Matrix

Typically, a risk matrix is ??considered during the tasks, which include risk analysis and verification of operational safety. Depending on the application of the matrix, you should set the levels of tolerance or acceptability of risks, as well as a way to gauge the effectiveness of avoidance.

Determination of impact and likelihood

A typical risk matrix is ??represented by a grid of 4x4. On the vertical axis are the criteria for the probability (rare, unlikely, possible, very probable, definite), and the horizontal axis - criteria for effects (negligible, minimal, critical, catastrophic).

Figure 1: Example of risk matrix

The consequences of the risks, as shown in the grid, use words as a description and ranked according to severity: minor, minimal, critical, and catastrophic. Determine the tolerance of the material by determining the values ??for each parameter of severity, as ...