Risk Management
The risks are inherent in varying degrees in all forms of contracts and agreements. Assessing and effectively managing these risks is fundamental to normalizing implementation barriers.
Risks that are not identified and therefore not managed in a timely and rational manner may lead to delays, price overruns, conflicts and disputes. Avoiding an earlier risk is the best way to reduce the likelihood of it occurring, and that’s our role.
With the following steps and methodology, we achieve the effective risk management process.
- Step 1: Identify the risk. This is where we need to discover, identify and describe the risks that may affect the specific work of the Client and form an overall picture of their results. During this step, the preparation of the Customer Project Risk Register will begin.
- Step 2: At this stage, we will analyze the risks in more detail. Once the risks are identified, the probability and consequence of each risk will be verified and an understanding of the nature of the risk and its ability to influence the project objectives will be developed. This information will also be added to the Customer Risk Register.
- Step 3: Risk assessment and rating. This is where risk assessment and classification take place, determining the size of the risk, which is the combination of probability and consistency, and then deciding whether the risks are acceptable or serious enough to be eligible for treatment. These risk ratings are also added to the Client’s Project Risk Register.
- Step 4: Risk reduction. During this step, the Customer’s highest risks will be assessed and a plan for addressing or modifying these risks will be developed. The goal will be to achieve acceptable levels of risk by creating risk reduction strategies and contingency plans. Risk mitigation measures for the highest ranking or the most serious risks will then be added to the Client’s Project Risk Register.
- Step 5: Negotiate and eliminate risk. At this point we will begin negotiations between ourselves, on behalf of our customer, and the other parties of the agreement.
- Step 6: Monitor and review the risk. This is the step at which the Client’s Work Risk Register will be constantly monitored to review existing or new risks that may arise from time to time, which may need to be addressed accordingly.