- Identify the potential risk –
Before you begin the process of risk management, the most critical step is to find out what exactly the potential risk is and what its source is. Anticipating such pitfalls can help avoid making mistakes that could possibly lead to the downfall of the organization. This is a wonderful opportunity to work as a team and utilize collective knowledge and experience of all members to reach the desired results. This not just helps get the job done but also enables kick-start better communication and further encourages cross-functional learning.
- Evaluate the risk –
Once you identify the potential risk, it is your job to evaluate the effects of this risk and try and understand how to come up with a solution for the same. So dig a little deeper and analyze the risk at hand, the likelihood of them arising again, and their frequency. While you are at it, put your team to the job of estimating the probability and fallout of each risk to decide the focus point. Putting to test each and every threat will help you unravel common issues across a project which will further refine the entire process of risk management.
- Prioritize the right risk –
To do this, start by ranking the risks in order of impact and importance. This not just gives you a holistic view of the project you are dealing with but also helps gain a sense of direction concerning the required solutions to the risk.
- Risk treatment –
This stage involves, using the analysis of the risks to come up with a tailored treatment plan or blueprint. Begin the treatment with the risk that has the highest priority and put your team to work on either solving or mitigating the risk to keep it from harming the interests of the firm.
Effective treatment and mitigation of the risk mean utilizing the team’s resources efficiently and avoiding derailing the project. treating and mitigating the risk also means using your team’s resources efficiently without hindering the project in the meantime. Over time when your database of past projects and associated risks increases in size you can anticipate possible risks follow a more proactive than reactive approach for treatment.
- Monitor the RM process –
Once you are done following all the previous steps, it is essential to follow them up to see how well the implementation is going and subsequently, identify the gaps and sort out issues. Ensure you send out a clear communication to all members of your team and the stakeholders. Once the risk management process and the corresponding risk register are in place keeping a tab on moving targets can get really risky.