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risk management is the process of minimizing or mitigating the risk. It starts with the identificationand evaluation of risk followed by optimal use of

resources to monitor and minimize the same.

Risk generally results from uncertainty. Inorganizations this risk can come from uncertainty in

the market place (demand, supply and Stock market), failure of projects, accidents, naturaldisasters etc. There are different tools to deal withthe same depending upon the kind of risk.

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Organizational Context

Involvement of Stakeholders

Organizational Objectives Reporting

Roles and Responsibilities

Support Structure

Early Warning Indicators

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Review Cycle

Supportive CultureContinual Improvement

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Every organization is affected to varyingdegrees by various factors in its environment(Political, Social, Legal, and Technological,Societal etc). For example, an organizationmay be immune to change in import dutywhereas a different organization operating inthe same industry and environment may be ata severe risk. There are also marked differencesin communication channels, internal cultureand risk management procedures. The risk management should therefore be able to addvalue and be an integral part of theorganizational process.

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The risk management process shouldinvolve the stakeholders at each and

every step of decision making. Theyshould remain aware of even thesmallest decision made. It is further in theinterest of the organization to

understand the role the stakeholders canplay at each step.

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When dealing with a risk it is important tokeep the organizational objectives in

mind. The risk management processshould explicitly address the uncertainty.This calls for being systematic andstructured and keeping the big picture in

mind.

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In risk management communication isthe key. The authenticity of the

information has to be ascertained.Decisions should be made on bestavailable information and there shouldbe transparency and visibility regarding

the same.

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Risk Management has to betransparent and inclusive. It should

take into account the human factorsand ensure that each one knows itroles at each stage of the risk 

management process.

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Support structure underlines theimportance of the risk management

team. The team members have to bedynamic, diligent and responsive tochange. Each and every member should understand his intervention at

each stage of the project managementlifecycle.

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Keep track of early signs of a risk translating into an active problem. This is

achieved through continualcommunication by one and all at eachlevel. It is also important to enable andempower each to deal with the threat at

his/her level.

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Keep evaluating inputs at each step ofthe risk management process - Identify,

assess, respond and review. Theobservations are markedly different ineach cycle. Identify reasonableinterventions and remove unnecessary

ones.

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Brainstorm and enable a culture ofquestioning, discussing. This will motivate

people to participate more.

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Be capable of improving andenhancing your risk management

strategies and tactics. Use your learning’sto access the way you look at andmanage ongoing risk.