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Total Risk Management Planning

August 28 2010

The idea behind risk management planning is to be as prepared as possible for the occurrence of risks that could have a negative impact on your business. While talking about this and having meetings with all involved parties is a good start, a documented process is what needs to be produced.

The first step of the documentation process involving risk management planning is the listing of all possible risks that could come in contact with your business or project. This should include both the ones that are perceived as having a negative impact as well as those with a positive impact. The reason the positive risks should be evaluated is because there have been occasions that a risk appears to be positive in its nature but has contained a negative side effect. It is always better to be fully prepared when any risk is involved.

To assist with this part and every part of the risk management planning, a risk management software program should be used. In this type of program, there are numerous lists of risks that are associated with the different types of industries that require this type of plan. This gives the developmental team a starting point instead of beginning the plan from scratch.

Another feature of the software used in risk management planning is the assessing of the risks impact and probability of their impact. Knowing what the odds of an impact, along with the damage, can better prepare a manager and business in becoming prepared for such risks.

An advanced feature of the risk management planning programs is the way they can prioritize the different risks that have been identified. It is necessary to know of the risks, but more importantly, how to properly deal with them is vital.

This is the main purpose of risk management planning, to minimize the impact of all risks that are associated with the particular business venture you are involved in. Knowing about the risks is important, but mitigating their impact on the business should be the goal of this type of plan.