Risk Management Process- Preparing organizations for contingencies

Risk Management Process- Preparing organizations for contingencies
Every business whether it's a large conglomerate or a small and medium enterprise, risk is an integral part of any
business process. Organizations plan their business strategies keeping in mind the risks involved in the industry
sector. Risk management thus is a part and parcel of the business operations. With the advent of technology and
businesses spanning across the globe, risk management has become more than necessary and is generally a part of
the Application Lifecycle management process in a techno savvy business environment.
Risk management, a process through which the companies control their level of risk is often a part of the
compliance function. Risk management system includes functions such as Risk Identification, Assessment and
Control. Policy, procedures and standards are the key elements of an effective risk management programme. Policy
describes the objectives, procedures determine the process of implementation and standards provide guidance on
particular issues.
This simple in-built process for managing the potential risks in a project, constitutes a activities such as:
Identify Risk Area: identification of risk prone areas in Technical field, Business operations, Marketing, Legal,
Financial, HR, and Admin.
Assess and Prioritize: The identified risk is assessed and prioritized according to its severity.
Preventive Action: Documentation of the preventive action and this need to be effected before the
occurrence of the risk.
Establish and Implement Corrective Action: Implementing corrective actions reduces the impact of the risks
Monitor and Track
Associate Issue: Tracking, recording the issues creating the risks.
The technological evolution, have facilitated the development of web based and configurable risk management
solutions. With a wide array of features these are easy to use, flexible and customer friendly entry-level solutions.
Through these solutions it becomes easy to view the existing risks in the system, trace the risk linked elements and
its relational dependencies. In case of real-time cases, the risk management software facilitates multiple operations
such as updating the priority and severity listing of multiple risks, cloning of multiple risks at the same time.
The risk management process involves a practice of systematically selecting cost effective approaches for minimising
the effect of threat to the organization. The strategies to manage risk include transferring the risk to another party,
avoiding, reducing the probability of the risk, and also accepting some the consequences of a particular risk, as at
times the financial and practical limitations come in way of risks mitigation. Use of various testing tools facilitates
monitoring of the IT environment, analysis of security data, risk evaluation & prioritization of remedies.
Learn more about :- ALM Software , visual studio integration & ALM Solutions & enterprise service bus

---