THE STEPS TO RISK MANAGEMENT.
Risk management is one of the key roles a team or a project manager carries out on their daily basis. In the risk management process there are five core principles that will help you run your risk management thus having a positive outcome. Risk is always uncertain and when it occurs it can either cause positive or negative results. It is important to note that risk can make both negative and positive effects on a project. This is because each team member can fall into a trap of thinking that risk will only affect their businesses negatively. If you are open to the risks that create positive opportunities you can be able to streamline your project and they will be smarter and more profitable.
The risk management process follows five steps. The five steps are always the same the names used to describe them is the only different thing. These risk management steps when combined they deliver a simple and effective risk management process. These steps include the following .
The first step towards an effective risk management is identification. As the project manager you should be able to uncover, recognize, and describe all the risks that might affect the outcome of your project. As the project manager there are a few steps that you should use so that you can identify project risks. You should start preparing your project risk, manager. The second step you should follow for you to come up with an effective risk management is analyzing. Once you have identified the risk, then you should analyze the likelihood and the consequences of all the risks. You should be able to understand the nature of the risk and the effect it can hove on your project. Also include analysis to your project risk manager.
The third steps towards a successful risk management is evaluating and ranking. These comes after you have identified and evaluated the risk and this will help you determine the risk magnitude and the likelihood of the consequences. At this point you should make a decision on whether the risk is acceptable or it is serious enough to issue a warranty. Also this should be included in your project risk register. Treat is the fourth step towards a successful risk management process. Treat is also known as risk response planning. This step should help you identify the highest ranked risk and you are able to come up with a plan on how to treat the risk and this should also be included in the register. Monitoring and reviewing is the fifth step.