Guideline of Implementing Risk Management Processes

One of the famous authors once said that culture makes all of us understand each other. And once we learn to understand each other, it becomes easier to overcome the economic and political barriers. And to understand each other, it becomes important to communicate in a shared language. As per the Risk management Processes experts, when it comes to building an effective risk management culture you need to adopt a shared risk language and to understand the responsibilities for risk and happen risk at every stage of the company hierarchy.

What are the risk and its factors?

As mentioned in Risk Management Processes, the risk is mainly known as the effect of uncertainty on any particular objective. In simple words, the possibility that shows will occur and adversely affect the goals and achievement of objectives. Variance from objective can be negative and also positive.

Driving the right response often depends on communicating risk in the right and easy to understand Language. As per the expert of Risk Management Processes, here is an example to understand better, in an organization, a risk exists in the branch A requires a different response from an issue occurs in branch A or an incident is underway in branch A. Beyond our everyday connotations of the keywords, the material difference was shown between all these situations and the responses.

When you have identified and assessed risks with the help of Risk Assessment Processes in a project, product, process or system, attention must be required to be paid to relevant events, be the negative outcomes we would prefer changes which help us in operating environment or all the risk profile that increases susceptibility to the unsupported outcomes. Under risk, issues and incidents here is an example, the likelihood of a fire outbreak in any level of the branch is a risk, and a branch manager found out that the fire alarm is not functioning here 's the issue, and the fire outbreak in a branch is an incident.

The relation between Issues and Incidents

As per the service providers of Risk Management Processes, both the issues and incidents are co-related, as an unresolved issue can take you to an incident and an incident can take you towards an issue that must be resolved to prevent future incidents. Let's understand it with the help of the risk of power outage and theft of a branch's power generator. Here the incident is generator theft. The incident has created an issue as now the branch no longer has a generator; it is a mitigant to the risk of power outages. For that, in response to the incident, you require root cause analysis to unearth underlying and resulting issues that indicate future vulnerabilities, changes to risk profiles.

Final Thought

To ensure that all three risk, issues and incidents receive the require treatment you need to focus on a conscious path mapping. Risks need to be proactively identified and managed. All the issues need to be discovered and resolved, to prevent loss in events. Incidents need to be responded on the bases of their sense of urgency to prevent or to minimize losses. Incident responses should be defined in advance as there are many issues who require idiosyncratic responses. By defining the response and resolution paths on the bases of incidents and issues, organizational resources can overstretch leaving significant and imminent losses without any attention required to address or curtail them.