Project Risk Management
Risk is an important aspect of the organization’s project, program, operation and strategy. It is a fact, not just a saying that all projects are subject to risk. However, very few organizations demonstrate the application of standardized risk management on their projects. This can be a major constraint to the success of any project – or even to the success of the organization’s strategy.
Improving the application of project risk management within an organization involves three main objectives:
- Developing the capability of identifying and analyzing risk, at the early project phases while it’s not too late to influence it
- Embedding the the risk management practices into the other project management processes.
- Introducing the Senior management, Project managers and other project team members to project risk management.
Business Risk Management
The business environment over the past few years has been characterized by an unprecedented series of issues, surprises, and negative events that have increased the focus on the (in)adequacy of organizations’ governance, risk, and control activities at Board, Executive and operational levels.
A well governed, risk managed and compliant organization delivers sustained value for its shareholders in accordance with agreed strategic objectives, making governance and risk management key ingredients to successful strategy execution. In our experience, strategies are often developed and executed without due consideration to strategic risks (i.e., those risks that could prevent the strategy from being realized). Organizations, while increasingly equipped to manage compliance, are not so equipped to measure and manage strategic and operational risk in a systematic way. Without this capability, organizations lack the means to predict and respond to significant risks that could undermine the strategy. Sound governance enables strategy by ensuring the organization has the appropriate policies, structures, authorities and delegations that explicitly address the link between strategy and risk.
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