Risk Management Task
A Risk Management Task is a GRC task that ...
- Context:
- It can (often) be associated with a Risk Management Process.
- ...
- It can range from being a Strategic Risk Management Task focused on long-term risks affecting the overall organization to an Operational Risk Management Task dealing with risks specific to day-to-day activities.
- It can range from being a Quantitative Risk Management Task that uses statistical methods to assess risks to being a Qualitative Risk Management Task relying on expert judgment and scenario analysis.
- It can range from being a Project-Specific Risk Management Task aimed at managing risks within a specific project to being an Enterprise Risk Management (ERM) Task that addresses risks across the entire organization.
- ...
- It can involve Risk Modeling, which uses mathematical models to predict the impact of potential risks.
- It can involve developing a Contingency Plan to prepare for unexpected events.
- It can involve Identifying Potential Risks by scanning internal and external environments for possible threats.
- It can involve Analyzing Potential Risks to assess their likelihood and potential impact.
- It can involve Mitigating Potential Risks by implementing strategies to reduce or eliminate the impact of risks.
- ...
- Example(s):
- Domain-Specific Risk Management Tasks:
- Financial Risk Management Tasks such as credit risk assessment, market risk analysis, and liquidity risk management.
- Medical Risk Management Taskss such asclinical trial risk assessment, patient safety evaluation, and regulatory compliance monitoring.
- Legal Risk Management Tasks such as contractual risk assessment, litigation risk management, and regulatory compliance risk assessment.
- IT Risk Management Tasks such as cybersecurity threat analysis, data breach response planning, and system vulnerability assessment.
- Hazard Assessment Tasks such as workplace safety inspection, environmental impact analysis, and emergency preparedness planning.
- ...
- Risk Identification and Assessment Tasks:
- Risk Identification Tasks involve identifying potential risks. Examples include conducting risk assessments to detect potential project delays and reviewing safety procedures to identify workplace vulnerabilities.
- Risk Assessment Tasks focus on evaluating risks. These tasks include assessing the likelihood of risks occurring and determining the severity of their impact.
- ...
- Risk Mitigation Tasks:
- Risk Mitigation Planning Tasks involve developing strategies to address identified risks. This includes developing risk response strategies and implementing risk controls.
- Risk Mitigation Tasks involve executing those strategies, such as implementing measures to reduce risk likelihood and establishing contingency plans.
- ...
- Ongoing Risk Management and Review Tasks:
- Risk Monitoring Tasks focus on tracking risks over time. Tasks include continuously monitoring identified risks and conducting periodic risk reviews.
- Risk Review Tasks involve evaluating the effectiveness of risk management efforts, including conducting post-project reviews and updating risk management plans as needed.
- ...
- ...
- Domain-Specific Risk Management Tasks:
- Counter-Example(s):
- See: Risk Modeling, Industrial & Organizational Assessment, ISO 31000, Failure Mode and Effects (FMEA) Analysis, Root Cause, Technical Standard, Project Management Institute, Risk Analysis (Engineering), Project Management, Business Continuity Planning, Operational Risk Management.
References
2024
- (GM-RKB ChatGPT, 2024) ⇒ Prompt: Summarize the concept Risk Management Task in 1- 2 paragraphs. GM-RKB ChatGPT (model: gpt-4-1106-preview). Retrieved: 2024-01-14.
- QUOTE: Risk Management Task is an integral part of project management, business strategies, and daily operations in organizations and industries. The core idea behind risk management is to identify, assess, prioritize, and mitigate potential risks that could adversely affect an organization's capital and earnings, its projects, or specific activities. These risks could stem from various sources such as financial uncertainties, legal liabilities, strategic management errors, accidents, and natural disasters.
During the risk management process, a task might typically start with risk identification, where potential threats are recognized and described. Following this, a risk analysis is performed to understand the likelihood and impact of each risk. Based on the analysis, risk prioritization or ranking is done to focus on the most significant risks. Finally, risk mitigation strategies are developed and implemented to manage, transfer, avoid, or reduce the risks to acceptable levels. Periodic monitoring and review of risks and the effectiveness of the management strategies are also crucial components of the risk management task to ensure that new risks are identified in a timely manner and that the mitigation measures are effective and appropriately adjusted to changing conditions.
- QUOTE: Risk Management Task is an integral part of project management, business strategies, and daily operations in organizations and industries. The core idea behind risk management is to identify, assess, prioritize, and mitigate potential risks that could adversely affect an organization's capital and earnings, its projects, or specific activities. These risks could stem from various sources such as financial uncertainties, legal liabilities, strategic management errors, accidents, and natural disasters.
2020
- (Wikipedia, 2020) ⇒ https://en.wikipedia.org/wiki/risk_management Retrieved:2020-6-26.
- Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.
Risks can come from various sources including uncertainty in financial markets, threats from project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. There are two types of events i.e. negative events can be classified as risks while positive events are classified as opportunities. Risk management standards have been developed by various institutions, including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards. Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety.
Strategies to manage threats (uncertainties with negative consequences) typically include avoiding the threat, reducing the negative effect or probability of the threat, transferring all or part of the threat to another party, and even retaining some or all of the potential or actual consequences of a particular threat. The opposite of these strategies can be used to respond to opportunities (uncertain future states with benefits).
Certain risk management standards have been criticized for having no measurable improvement on risk, whereas the confidence in estimates and decisions seems to increase. For example, one study found that one in six IT projects were “black swans" with gigantic overruns (cost overruns averaged 200%, and schedule overruns 70%).
- Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.