What is Risk Management?
Risk management is the key strategy or plans that is documented by the project manager or a team leader prior working ion any project to eliminate several key risks occurrence chances. Risk management is a framework associated with several key steps those could be followed effectively to manage success rate of the project. Risk management is considered as effective identification, assessment and control of key threat that might directly harm the core business objective and success rate as well together with capital and other earnings of the enterprise. These key risks usually stem from wide range of source such as legal liabilities, accidents, financial uncertainty, strategic management errors, and several natural disasters etc. Thus, this can be concluded that an effective risk management plan is about the detailed identification and controlling of threats to company’s digital assets associated with customer’s personally identifiable information i.e. PII, proprietary corporate data and intellectual property as well.
A properly documented risk management report associates with different key steps such as- identification of information assets of the organization, identification of key threats and vulnerabilities, analysis and evaluation of identified key threats and vulnerabilities, and associated solution strategies to avoid documented risk or even to minimize its effective impact.
Need to Manage Risks
It has been researched that there is a great need to manage the organizational risks by formulating risk register that associates with differently identified project risks and threats, impact, probability of occurrence etc. With effective risk management, a project manager can significantly enhance the chances of project success. Thus, there is a high need to manage the project risks so that the company need not to phase several losses in terms of finance, brand value or customer base as well. Also, there is a need to impose or enforce the implementation of several risk management standards such as- ISO 31000 principles that explicitly addresses the uncertainties by taking into account several factors such as- human factors.
Risk management framework
Risk registers are used by the professionals to conduct proper risk assessment that associates with several key factors those are discussed in following section of the article-
• Information assets identification: In this first phase of the framework in which the major information assets of the organization are identified because sometimes these assets acts as a key source of occurred risk or key threat. These information assets might include human information assets, systems and laptops, centralized repository of the enterprise, customer’s PII information or basic demographic data etc.
• Key threat identification: In this next risk assessment step, the key threats related with various key operations of the enterprise and working style of an individual are identified. Proper listing of each key threat is made by the responsible person so that further actions could be taken on it.
• Key vulnerabilities identification: Then in this third step, key vulnerabilities associated with the existing business operations of the enterprise are identified those are directly linked with identified key threats in previous stage. It is completely the wish of risk assessment taker that if he wishes to identify the threat or vulnerabilities first as per his convenience, he can switch these steps with each other.
• Analysis of identified risks and vulnerabilities and corresponding link between them: In this step of risk assessment, different risks and vulnerabilities those are identified at previous stages are analyzed in order to find and build proper link between them. Vulnerabilities are usually the major cause due to which key threats or risks occurs so that target of the assessor is to first estimate the vulnerabilities associated with numerous business activities of the organization and then the risks or threats those could occur if the identified vulnerabilities would not resolve as soon as possible.
• Risk mitigation strategies: At last, the mitigation strategy is documented for each identified key vulnerability or threat to secure enterprise from various key losses and even from the chances of losses.
At last, from the findings of the article, it can be concluded that risk management plan is all about identification, analysis and mitigation key steps those need to be completed by the risk assessor because he would have proper idea regarding identified key threat or vulnerability. Risk register is the approach that is usually refereed by the professionals to conduct risk assessment to secure the enterprise from various key losses such as- financial loss, employee loss, or loss related with customers of the enterprise.