Reference no: EM131932949

Question for statement below...I would contend that there are times where we may have an opportunity to improve a process or method for instance, and the risk is associated with not mitigation, but with taking a calculated "chance" to do something other than planned. What are your thoughts?

To assess a risk and be in a position to comfortably tackle it and solve the problem is a critical key and aspect for every organized and well-managed company. The process or standard operating procedure for the project is in itself a popular method used by most companies. It identifies the process and steps that the company should use when faced with a risk or the potentiality of a risk occurring. It should be structured as follows:

Risk identification - The risk events that occur and their relationship are identified. This identification can be done if situational analyses of the institutions and systems is carried out. Technical performance, schedule and costs can be used to identify a relationship between the risk events and application of tool such as SWOT can be of help.

Risk Impact Assessment - The eventual consequence of the risk and how it will affect both technical, operational and corporate performance. The impact it has on the ability of the firm to carry out normal operations at its optimum.

Risk Prioritization Analysis - After assessment of the risk, prioritization is done so as to ensure that maximum results are attained from the situation. Prioritization is based on the impact to core operational abilities and functions of the company.

Risk Mitigation - Prioritizing is then followed by mitigating the risks by coming up with solutions for both the short and long term.

The processes involved are the planning, implementation and monitoring of the progress, evaluation of strategies and then assessing whether the strategies can be adopted as the standard operating procedures.

In the assessment and evaluation, any potential risks are also identified and the cycle begins again.