4 Ways to counter ineffective risk management by Chetan Maheshwari

Here are some poorly integrated and ineffective risk management in organisations and how to counter them:

●????Not aligning risk management with organizational objectives - Treating risk as only negative and overlooking the idea that organisations need to take risks in pursuit of their objectives. Effective risk management enables an organisation to exploit opportunities and take on additional risks while staying in control and, thereby, creating and preserving value.

●????Choosing compliance only approach over a risk-based approach - What certainly contributes to ineffective risk management is the motivations driven by the short-term focus of the compliance only approach. Having a compliance-only mentality in covers issues such as formal roles and responsibilities, prevention and detection of fraud, and compliance with laws and regulations, but ignoring the need to address both the compliance and performance aspects of risk management.

●????Inability to Implement enterprise Risk Management - This failure is one we see time and again. ERM institutionalizes risk management procedures in the organization by standardizing the tools, methodology and people processes in monitoring individual project risks. This is important so that the impacts of individual project failures (in case failures do happen) are addressed appropriately.

●????Not Selecting the Right Tools - Risk analysis and management tools serve multiple purposes and come in many shapes and sizes. It is important to select the tools that support the process. When selecting a risk analysis and management tool, consider these four criteria:

1. Supports decision making: Does the tool provide the necessary information to support decision making?
2. Accessibility: Is the tool accessible to all users and key stakeholders? Can the tool be located/hosted where all necessary personnel can access it?
3. Level of detail: Is the tool detailed enough to support decision making?
4. Integration with other program management/systems engineering processes: Does the tool support integration with other program management/systems engineering processes?

Check out our risk management solution which addresses all of these issues - https://claptek.com/solutions/integrated-risk-management/