參考答案
Risk management is an integral part of every project, and every company or business has a reliable risk management strategy in place that comes into play whenever an emergency occurs. Risk mitigation is not a one-time thing; it is an ever-developing process that requires evaluation.
If a specific risk management strategy fails to work, it is immediately identified and taken care of with either a new approach or required modifications. Risk management primarily involves the five phases that we have listed below:
- Risk Identification - The first step or stage in the risk management process is risk identification, where the potential risks are identified. Members from the senior management and others in an authoritative position come together to pick out and discuss the identified risks (which can range from legal risks, market risks and regulatory risks, etc.) so that their root causes can be analysed, and eventually a solution can be figured out to address that.
- Risk Analysis - The next stage in this is where the nature of the risks is analysed. In this, the magnitude of the identified risks and how they can impact the business is carefully scrutinised. During the analysis, everyone oversees whether this risk is potential enough to affect operations, reduce revenue, stall deliverables and cause inconveniences to the stakeholders and customers. It is only after this analysis that a risk management framework is designed to be followed by the team.
- Risk Evaluation - Not every risk is of the same nature. Some risks are low-intensity while others involve priority settlement. So, once the risk is identified, it should be assessed, keeping in mind the impact it can cause. Categorise the risks so that the concerned team can work on them without any external influence or delay in the process. Make sure to address the high-risk areas first before the medium or low-intensity risks are taken care of.
- Risk Mitigation - Finding ways and strategies that can help mitigate the risks is important. For this, it is important to discuss the issues that the potential risks can raise with the professionals of the risk management industry or those who are a part of the organisation's risk mitigation team. The meeting conducted for this would involve stakeholders, people from the senior management team, the clients, and those involved in the company's decision-making process. The purpose of this discussion would be to list out the risks, agree on a practical solution and issue a prompt implementation of the same.
- Risk Monitoring - To ensure that any form of risk does not disrupt the functioning of the business or hamper the day-to-day deliverables, it is important to constantly keep a tab on them. Since this is not practical to achieve singlehandedly by employees, the risk management teams should have a lookout for this with their risk tracking systems. Every company, more or less, has a well-integrated risk management setup that stays vigilant towards such issues and promptly notifies the organisation regarding any upcoming crisis or emergency.