The Importance of Risk Management
Risk management is a process for protecting an organisation’s earnings, capital, and objectives. It involves identifying, evaluating, and controlling various legal, financial and security threats that could impact organisational goals.
Here below we’ve enlisted key components of risk management:
- RISK IDENTIFICATION: Risk identification is the process of identifying possible risks to your business. This can include anything that could harm your business such as internal factors resource constraints or external factors like natural disasters and market fluctuations.
- RISK ASSESSMENT: Risk assessment is the mechanism of identifying threats that could negatively damage an organisation’s ability to conduct business. The main role of this is to reduce the impact of potential risks on business operations.
- RISK MITIGATION: Risk mitigation is the process of reducing the impact of possible risk by establishing a plan to manage, eliminate, or limit setbacks as much as possible.
- RISK MONITORING AND CONTROL: Risk management needs continuous monitoring and control throughout the operational or project lifecycle. This includes assessing changes in risk exposure, monitoring identified risks, and adjusting risk management strategies as necessary.
- COMMUNICATION & REPORTING: Effective communication and direct reporting of risks, and mitigation efforts are important. This facilitates informed decision-making within the project team and among stakeholders. It even fosters a risk-aware culture within the organisation.
Our role in risk management is to partner with organisations to execute risk management processes tailored to their specific requirements and aims. By leveraging our experience and expertise, we help identify, assess, and mitigate risk effectively so organisations can achieve their goals with confidence.
How Project Management help you
With EDSICO complete risk management solutions, organisations can identify potential risks, seize opportunities, and thrive in today’s dynamic business environment.
- Lack of quantitative data in risk management often leads to unexpected disruptions in identifying risk.
- Static risk assessment model in management can result in outdated risk profiles and slow response to emerging threats
- Delayed data and reporting in risk management leads to reducing the services ability to respond quickly.
- Failures to track risk indicators in management cause high -impact risk in services.
- Poor stakeholder engagement in risk management can lead to misunderstandings or incomplete risk mitigation efforts.
- Inadequate cybersecurity measures can lead to breaches of sensitive risk data in management.
How EDSICO can help your business
According to PRINCE2, project risk management to be systematic and include the ‘proactive identification, assessment and control of risks that might affect the delivery of the project’s objectives. A risk management system sees program and project assurance as integral to mitigating project risks.
Plan Risk
A Project Manager needs to define how to manage business risk by developing a risk management plan. A documented risk management plan will be created to define certain risk approaches. This is a reference tool provided to the business as Best Practice standards moving forward.
We support project managers to:
- Developing a risk management procedure that define how each step will operate
- Defining the risk tolerance threshold.
- Selecting tools or techniques to be used.
- Categorising risk and severity.
- Identifying your record keeping requirements.
- Roles and responsibilities outlined of each stakeholder.
- A contingency outline of risk budget
How EDSICO identify risks
Following the processes and procedures defined in the previous step, the role of the Project Manager is to then define what risks may affect the project and documenting such characteristics.
We will assist to:
- Log a risk register for subsequent management control and visibility.
- Identify causes.
- Measure likelihood of each event.
- Forecast effect of the risk on the project.
- Maintain the repetitive process.
- Review and re-defined the risk management plan if it requires
How we analyse risks
In order to determine which of the identified project risks require subsequent management – an analysis of the threats and opportunities is required to be undertaken in a form of assessment. What we can do for you:
- Perform qualitative risk analysis and prioritises project risks by combining the probability of occurrence and the risk impact
- Risk assessment
- Quantitative risk analysis by assigning weight to each risk based on probability and potential impact the risk can have on the project
- Highlighting whether further management is necessary
- Updating the risk register
Response
Risk response planning takes the evidence collected to date from the risk register and for each threat and opportunity that has been identified as falling within a certain range of risk tolerance threshold, the Project Manager will determine one or more viable risk responses.
We will help to develop options and actions that will enhance opportunities and reduce threats to project objectives.
Monitor and Control
Throughout this process the Project Manager is continually alert to identifying risks, monitoring risks and executing appropriate response plans.
We support the Project Manager to manage risk within their projects in a systematic manner:
- To ensure that threats have a reduced effect on the project outcome
- To improve the likelihood of gaining from certain opportunities along the project life cycle
Industries We Serve
What We Do
Project Management
Provide comprehensive project management services, from planning and execution to monitoring and control.
PMO Setup
Establish a centralised hub for project management oversight, ensuring efficient coordination and control across your organisation.
Programme Management
Coordinate and deliver multiple interconnected projects to achieve overarching strategic goals.
Controls and Performance Management
Implement robust controls and monitoring mechanisms to measure project performance and ensure adherence to standards.
Data Analytics & Reporting
Leverage data-driven insights to optimise project performance, make informed decisions, and track progress.
Risk Management
Identify, assess, and mitigate potential risks to safeguard your projects and minimise disruptions.
Change Management
Effectively manage changes to your projects, ensuring smooth transitions and minimising impacts.
Commercial and Procurement Management
Optimise your procurement processes, negotiate favorable contracts, and manage supplier relationships effectively.
Primavera Cloud and Support Services
Leverage cloud-based Primavera solutions for project management, supported by our expert team.
FAQ for Risk Management
In today’s world importance of risk management cannot be neglected because it’s the process of identifying, evaluating, prioritising, and mitigating risks to reduce their impact on organisational goals. Risk management will not just enhance decision-making but will protect investments and assets.
EDSICO uses qualitative and quantitative risk assessment, continuous risk monitoring and transparent reporting to ensure proactive risk management throughout the project lifecycle.
Yes, EDSICO Management has vast experience in handling risks across various industries, including construction, transportation and renewables. Our experts use risk management strategies to address each industry’s needs.
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