Risk Management 101: Identify and Assess Risk

A couple of weeks ago, we started to dive into the risk management process. If you missed the first post, you can catch it here! Now that we've laid out the groundwork, it's time to dive deeper.

It is important that the team evaluating the possible risks is aware of where these take root. Where do they come from? Risks can come from various different outlets. 

Internal risks can be found within the structure of project management. Structure that entails things such as too many projects at once, no team leader, problems within team members or even assigning the wrong person as project manager can lead to dysfunction in the workplace. External risks are a key factor to consider as well. These risks can range from anything from natural disasters to inflation.

From there, the risks must be categorized and prioritized. This task entails evaluating the impact and probability of said risks. For instance, if the risk will have a low impact to the company and the probability is low of it occurring, we would not prioritize this risk. However, if the risk has a high probability of occurring and would have a high impact once it hits, this risk would be prioritized above others. This prioritization process would vary depending upon the company.

Once these risks have been identified, we assess the risks that have surfaced. In other words, we prioritize such things and decipher what we should focus on first. Some risks that come about are things that should be monitored, but not obsessed over. This is our task at The Byers Group to analyze this process for you in order to give you peace of mind. If we find a risk that will create a great impact for the company, we instill a plan to follow in order to prepare for such things.

Now that the risks have been identified and assessed, The Byers Group moves on to the mitigation process. Stay tuned for next week's post in order to see what we offer next!