12

YEAR

2011

VOLUME

FOUR

Decision support

Management and leadership consulting  Cost benefit analysis   

performance  metric

Science of Resource Informed Decisions

Info@Anvari.Net

 

 

  Subject:    

 Investment and Risk

Enterprise risk management

In enterprise risk management, a risk is defined as a possible event or circumstance that can have negative influences on the enterprise in question. Its impact can be on the very existence, the resources (human and capital), the products and services, or the customers of the enterprise, as well as external impacts on society, markets, or the environment. In a financial institution, enterprise risk management is normally thought of as the combination of credit risk, interest rate risk or asset liability management, market risk, and operational risk.

Risk-management activities as applied to project management

1. · Planning how risk will be managed in the particular project. Plan should include risk management tasks, responsibilities, activities and budget.

2. · Assigning a risk officer - a team member other than a project manager who is responsible for foreseeing potential project problems. Typical characteristic of risk officer is a healthy skepticism.

3. · Maintaining live project risk database. Each risk should have the following attributes: opening date, title, short description, probability and importance. Optionally a risk may have an assigned person responsible for its resolution and a date by which the risk must be resolved.

4. · Creating anonymous risk reporting channel. Each team member should have possibility to report risk that he/she foresees in the project.

5. · Preparing mitigation plans for risks that are chosen to be mitigated. The purpose of the mitigation plan is to describe how this particular risk will be handled – what, when, by who and how will it be done to avoid it or minimize consequences if it becomes a liability.

6. · Summarizing planned and faced risks, effectiveness of mitigation activities, and effort spent for the risk management.