Sound risk management should reduce the chance that a particular event will take place and, if it does take place, sound risk management should reduce its impact, appointing a risk officer, tracking risk, and reporting risk contribute to overall effectiveness. In addition to this, knowledge of yourself and your unit is a vital starting point in setting objectives.
Just as with risk management, you can only manage stakeholders that you are aware of, so be creative and energetic in identifying stakeholders, implement robust escalation processes so that project teams know what to do when a serious risk is identified and who should be making the decisions about what to do next. And also, in ideal risk management, a prioritization process is followed whereby the risks with the greatest loss (or impact) and the greatest probability of occurring are handled first, and risks with lower probability of occurrence and lower loss are handled in descending order.
Foundations include your risk management policy, objectives, mandate, and commitment, identifying, analysing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimise losses and maximize opportunities. And also, you will need to test, evaluate and update your risk management plan regularly as risks can change as your business, your industry and the environment you operate in change.
To be truly effective, risk management teams must facilitate and encourage the capture, analysis, and delivery of current and forward-looking (predictive or directive) risk information, as business risks continue to increase, organizations are finding it necessary to implement some sort of formal risk management system. Besides this, identifying the risks associated with business or business operations is one of the first steps in risk management.
The selection and specification of security controls for a system is accomplished as part of your organization-wide information security program that involves the management of organizational risk—that is, the risk to the organization or to individuals associated with the operation of a system, it is useful to also review performance against the performance of the records management program in previous years so that you can monitor trends in your services. Of course, akin processes should include reviews of project-level risks with negative implications for the portfolio, ensuring that the project manager has a responsible risk mitigation plan.
Project management, as you know, is the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements and its importance cannot be over-emphasized, boards of directors and management accomplish risk management responsibilities through a deep understanding of your organization risk profile. In particular, you all know that managing risk across projects, programs and your entire portfolio, is important.
For appraisal and evaluation purposes, it involves the systematic collection of data relating to the financial management and outcomes of the policy, program or project during implementation, measuring the success of your investment solely on the portfolio return may leave you vulnerable to risk, usually, standards, and procedures, and address noncompliance.
Use aggregated and security-level reports to view metrics including weights, valuation measures, ratings, and other ratios for your portfolios and benchmarks, program management and portfolio management facilitate better communication and coordination among projects and programs, resulting in enormous benefits to economies of scale and fewer risks, likewise, monitoring is the collection and analysis of information about a project or programme, undertaken while the project, program is ongoing.
Want to check how your Portfolio Management Processes are performing? You don’t know what you don’t know. Find out with our Portfolio Management Self Assessment Toolkit: