The earlier article on Risk Management is Risk Management I – A proactive approach to resolve future root causes and their potential consequences.
- identifying what are those risks the organization is ready to accept.
- The plan to deal with those unacceptable risks
- defines the main requirements of risk mitigation plan.
- To identify risks and prepare an action plan to deal with the risk
- To reduce occurences and impacts of risk
- To understand significance/severity of risks
- To promote organizational behaviors focused on risk management
- To increase effectiveness of product and service delivery to customer
- Create a process for who, what, when, where, how and how much.
- Maintain information on historic issues.
- Capitalize on historic issues to prevent future issues.
- Bring out hidden risk knowledge, so it can be managed.
Benifits of Risk Management Program
- Encourage proactive management
- Be aware of the need to identify and treat risk throughout the organization
- Improve the identification of threats
- Comply with relevant legal and regulatory requirements and international norms
- Improve financial reporting and governance
- Improve stakeholder confidence and trust
- Establish a reliable basis for decision-making and planning
- Improve organizational controls
- Effectively divide and use resources for risk treatment / handling
- Improve operational effectiveness and efficiency;
- Cost of risk management is typically less than the cost of issue management
- Enhance health and safety performance
- Enhance environmental protection
- Minimize losses and improve loss prevention
- Minimize the cost and efforts in managing incidents
- Improve organizational learning and resilience
- Increase the likelihood of achieving goals
The most important benefit of the risk mitigation program is that it gives the organization a future visibility. It deals with future events and not manage the current issues. The organization will be ready to face the realization of the risk. This gives a state of readiness against the potential consequences
Originally posted 2013-10-27 17:48:00.