Risk management Document.
What is the risk?
The simple meaning of Risk what we can lose if we do not get success. It can financial, legal obligation, life threat, future opportunity, Brand or image loses etc.
For a start-up Rupees one lakh may be bog and for an established for it is nothing. Risk it always calculated against our current capabilities. In simple terms if can say. It should be as per what we can recover if the situation is same.
How to control risk?
A calculative Risk can be easily control if any circumstances occurs unfair to us. Strong planning and capable experience and trained team is always helpful to control risks. You can control Risk by following Risk management steps.
How can we reduce Risk?
You can reduce Risk by following Risk preventing measures. Risk reduction is a risk management technique that involves reducing the financial consequences of a loss. Reducing its frequency, or making it less likely to occur overall.
If you write the answer with your internal team, it will help you to identify the risk level
- How much Risk we can take?
- How bigger is this from our current capabilities and risk bearing capacities?
- How much maximum risk should we take?
- How much time it will take/
- Is this risk only financial or also affected my image?
- Is this risk will give me great learning experience?
- What the other benefits and losses?
- How can we minimize risk?
- How big it is then our current financial worth.
- How much time it will take to cover it.
- What are the other aspects of this?
- It is only financial risk or it will also create legal responsibilities and law informant action on us.
- How many probability of Risk occur?
How can we cover the Risk? (can we reduce it by law, agreement, terms, can we transfer it by purchasing insurance, or bank guarantee, or third party partnership, can we manage it with certain terms and condition or disclaimer of non-responsibilities
Our risk handling capacities.
For example- we have to go somewhere far and we have to drive through Two -wheelers and on long, heavy roads it can be life risky.
Now the point is what should we do? left the journey or check the risk with risk management like
We can check our tyre and fuel and other important aspects of the vehicle.
We should drive in limited speed
We strictly follow the traffic rules
We only drive in day time and corner of road
We wear good quality helmet to safe us
For more safety we can take a body jacket.
Like in business we can calculate the risk, manage the risk or cover the risk.
Step to follow in Risk management
- Identify Risk
- Check assessment with our existing capacities.
- Do evaluation of risk factors parts and impact
- Break the project in steps and decide the budget, time, infra and output
- Assign the role and responsibilities to the right capable person or team to manage every step.
- Find out prevention measures.
- Create plans and if contingency happens
- Share risk with third party involvement like, Insurance, stake holders, Business partner, Secondary contractors and suppliers.
- Create insurance with agreement terms, disclaimer and applicable government law.
- Strong planning with experience consultant and executor team
Risk Preventing Measures
- Do not opt more than safe risk lines.
- Always have plans if risk occurs.
- Divide projects and actions in small parts to control.
- Secure insurance or stake partner Back up.
- Prepare preventing legal terms, business agreement, and disclaimers.
- Check out the law in forced on project.