We live in the world, which is pretty much defined by the risk. Overall the life is full of risks, whether it’s catching the train to work, crossing the road, climbing mountains, a business deal, investing in financial products, making health or making the change in our lifestyle. The risk is expected in everything whatever we do. It is evolutionary in nature that means the level of risk is changing rapidly and thus our views. That’s the reason; we have to constantly manage the evolving risk.
Today, all the industries are now originating on “Management of Risk”. In the corporate world, the understanding and analysis of risk are involved in the risk management, to meet the organization objective. However, managing the risk is also considered as an art.
Here are the top 10 ways to manage the risk which dramatically improve risk management at work.
Clear Risk Management Approach –Being clear about the remit is an important part of the work. Clearing the exact part of the business to work on, and getting clear ideas about the activities, tasks for which one is responsible.
Risk Identification –It’s better to identify the risk earlier. The sooner one identify the risk, it will be easier to manage that risk. It is always benefited to identify the risk at the start of the project. This risk management should be embedded into all the work process and corporate culture.
Positivity – Don’t fixate risk as always negative, but it can be positive too. This presents opportunities and enables one to take advantage of a given event or situation.
Appropriate Description of Risk –Practicing to create risk is always good and distinguishing between the cause and the effect. To find this difference appropriate description of risk is very important.
Estimation & prioritize the Risk – To assess and to prioritize all known risks, use the probability and impact matrix. Much good or bad stuff happens at organizations, but will it happen really or not is the important thing to understand. Also, better to be clear with the point that what one has estimated, identified the risk, not necessarily will happen the same. Thus, need to manage these things in a better-planned way.
Responsibility and Ownership of Risk –Many of us face various risk management issues. Such as potential safety issue, suspected fraud, or security breaches; at this time better to taking responsibility to solve by own, rather than waiting for someone else to sort the problem out. This risk management will give its best results when all the people are associated with that risk is empowered to speak out and take action.
Learning from the Past Mistakes –Learning from the mistakes is one of the best things in risk management. Also, it is important to ensure that they are never been repeated. One can make use of the historical data and anecdotes, for learning from the past and to ensure the mistake will not get repeated.
Appropriate use of Strategies (risk responses) –Strategy is to use the 4T’s model i.e. Terminate, Transfer, Treat, Tolerate. This model will help to decide how best one can manage the risk.
Documenting the risks in a register – By capturing all the risks across the organizations, one will be able to see ‘the bigger picture’ of their entire risk exposure. This will defiantly improve the information sharing and accountability. Simply keep documenting the risks in a risk register, around the world, around the industries, and around the organizations.
Keep monitoring and reviewing – The risk factors are increasing and changing continuously as new risks are emerging, while others are becoming less critical. By being proactive and regularly monitoring the exposure, one will be ready to act when the time comes.