Risk Mitigation- Perfecting Strategies 101

Risk Mitigation

Risk mitigation aims to prevent, and provide solutions to problems. Each project management team is responsible for effective risk management. Suppose you have your risk mitigation ways employed in your projects. 

How about, bettering these approaches? This article will help you see and fill the gaps in your plan.  

Keep Track Of Your Business Diagnostics

Even though risk management more concerns security, but is also highly relevant to business success. Thus, making use of your business diagnostics is helpful.

What is Business Diagnosis?

Like health concerns, a business diagnosis also involves causes and effects. This usually relates to past unsatisfactory project performances. 

  • Besides, in this phase, take the time to understand thoroughly both past and existing business performance. 
  • Highlight past approaches that proved to be successful and effective.
  • There are re-occurring risks. This is normal. So make use of these diagnostics in identifying causes and symptoms of these risks.
  • Next, for best performance, continually assess the effectiveness of new and adjusted strategies. Also, the assessment should include how this affects the business’ performance.

Transfer Risks

Upon risk assessment, weigh if it is possible to transfer the risk. Moreover, suppose the overall risk figure cannot be fully transferred. But maybe there are aspects of it that are feasible for transfer.

For example, this is more applicable to financial risks. Suppose you can do this via insurance. Or another way is by contractual obligations.

Examples Of Possible Risk Transfer:

  • Suppose your company owns several vehicles. So there is a possibility of car accidents or anything that may put this asset at risk. Thus, the company can transfer the risk by applying for car insurance.
  • Another example is an Employer’s Liability Insurance. This insurance takes obligations. For instance, environmental liabilities do occur. Like coming from a company’s balance sheet.

Defer Decisions

Deferring or delaying the making of decisions is at times helpful. For instance, the team or department is planning to integrate a tool or software. 

This is not an urgent decision to make. Besides, hastening into the decision of integrating software may further put you at risk. 

So the best way is to wait until your research is more holistic. Get the whole picture of the software feasibility. So you can make the best approach to risk mitigation. For instance, you finally decide to integrate.

Contingency Plan- Switch From A To B

This is another term for having a ‘Reservation Plan’. Suppose your first option does not work, then you have reservations in place.

You can do this by being as wide as possible with your research. Avoid generalities with your approach. Thus, try to look and think outside the box. 

Another way is to have your team’s outlook or perspective too. They may have seen the following problems before. And they may have possible solutions in mind.

In addition, have your assessment and plans examined by the experts. These professionals may have another eye on the scene. And you can learn from other successful project teams too.

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