“Risk Management is the term applied to a logical and systematic method of establishing the context, identifying, analysing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organisations to minimise losses and maximise opportunities.”
Some may define Risk Management as simply the culture, process and structures that are directed towards the effective management of potential opportunities and adverse effects.
Muli has developed a project management risks facility called Risk2Do that provides a project control framework for managing Risks. Risk2Do is designed for project based industries and is based on the practices of global project management and construction companies and provides even the smallest firm with an easy to use mechanism to manage risk.
Risk management is as much about identifying opportunities as avoiding or mitigating losses. Opportunities to lower costs by reducing complexities or by saving time should be included in the risk analysis.
Muli has found that some risk solutions have become overly complex and time intensive to maintain; so one could well ask “what is the purpose of risk management”, instead of “what is risk management” as the original purpose of supporting decisions that lead to project success is often lost in the bureaucracy.