Risk Management Options project Risk management as a shared or centralised activity must accomplish the following tasks: identity concerns; identify risks & risk owners - evaluate the risks as to likelihood and consequences; assess the options for accommodating the risks; prioritise the risk management efforts; develop risk management plans; authorise the implementation of the risk management plans; track the risk management efforts and manage accordingly. It is possibilities that are being accommodated. It is management's job to do the planning that will accommodate the possibilities. The customer is the final judge, but internal goals should be to a higher level than customer expectations.
The key words in risk management are: proactive; management; accommodate; acceptably; professional; possibility. The need for new risk assessment and management techniques is required to continuously track down potential and critical risks, and to develop strategies for handling these risks, for example: during product development. It is obvious that without a strong risk management plan as part of the process, a company will waste time, money, and resources, and will fail to manage their projects correctly.
Risk management is the sum of all proactive management directed activities within a programme that are intended to acceptably accommodate the possibility of failures in the elements of a programme. From an organisation's perspective a failure is anything accomplished in less than a professional manner and/or with a less-than-adequate result.
Risk Management Options
Risk management options are usually cited as risk handling options subdivided as: avoidance, control, assumption, risk transfer, and knowledge and research. Generally, the assessment of management options is a hip shot since the necessary decisions must occur early in a programme when things are still fuzzy. However, if experienced personnel are given the facts, one can expect very good decisions since there is seldom any real mystery about the practicality of options available. (The practicality of any option is usually just an issue of schedule and funding.)