Enterprise Risk Management
A business uses enterprise risk management as an approach to dealing with the seizing of available opportunities and to manage their risks thru the appropriate methods and processes. It is the development of these methods and process that are the crucial step to ensuring this risk management plan succeeds.
This framework for handling your enterprise risk management plan will enable you to better deal with the risks before and during their impact on your project. To lay out this process a project management tool has been found to be most useful.
This project management tool to assist in the establishing of an enterprise risk management plan is the risk management template. This is a pre-formatted document that is used as a guide to help the user create a complete and useful plan of attack against the numerous risks that could interfere with their business.
In the enterprise risk management plan has to be a section on the procedure for identifying all possible risks that could be encountered. The following section needs to deal with the potential impact damage each risk could cause on your project. This is where each risk needs to be analyzed for it impact potential on the project.
With the first three sections completed, the fourth section of your enterprise risk management plan will take the results of the first three and properly prioritize them. This way the risks that could cause the greatest amount of damage and that are most likely to occur can be properly assigned a priority list so they can be mitigated in the correct order.
The mitigation process for each risk will be different because each of the listed risks is different in their makeup and source. The enterprise risk management plan has to consider each one as an individual and deal with them appropriately.
The complexity of every enterprise risk management plan is different for each project. The economic environment along with available monetary resources all play a part in how a project manager can deal with each risk. The proper dealing of each risk and to what degree will help determine if the project will be successful.