Risk Management Paper

In: Business and Management

Submitted By harrykahlon7
Words 2992
Pages 12



"An important manifestation of effective risk management is getting a handle on the scope, volatilities, and severities of the risks one's company faces, then tailoring an appropriate set of risk responses. Risk managers have many types of risk treatments at their disposal. Every company's risk management "solution" will be unique because the exposures and risk appetites all differ. The key is to have a reasonable under-standing of how each treatment option works, alone and in combination with others, so that decisions are informed and results are less influenced by luck than by reason.
The risks that threaten a business are constantly changing and increase in complexity. That is why it is so important to have a viable risk management plan not only for our project but for the business as well. It is important that in developing our plan that we: (1) identify the threats or events that may affect the continuity of the project, (2) prioritize and set risk thresholds, (3) evaluate the tactics and the costs associated with the various proposed treatment plans for preventing or reducing the risks, (4) establish processes that will make us ready for regulatory audits, and (5) make informed decisions on how best to mitigate the risks of the project (Risk Readiness Assessment, 2005).
Risk identification, monitoring and resolution are key tools for successfully completing a project. Part of controlling a project during the management phase is to have an established risk management process. This…...

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