📌 Risk Management Summary
Risk management is the process of identifying, assessing, and prioritising potential problems or threats that could affect an organisation or project. It involves finding ways to reduce the chance of negative events happening or lessening their impact if they do occur. This helps organisations make better decisions and protect their resources, reputation, and goals.
🙋🏻♂️ Explain Risk Management Simply
Think of risk management like wearing a helmet while cycling. You cannot stop every accident, but you can take steps to protect yourself if something goes wrong. In projects or business, risk management helps you spot possible problems ahead of time and plan how to handle them, so you are not caught by surprise.
📅 How Can it be used?
Risk management helps teams spot possible problems early and plan actions to prevent delays or extra costs in a project.
🗺️ Real World Examples
A construction company uses risk management by checking for possible delays like bad weather, equipment breakdowns, or supply shortages before starting a building project. They then create backup plans, such as having extra materials on hand and scheduling work around the weather forecast, to keep the project on track.
A software development team uses risk management to identify risks like security breaches or missed deadlines. They address these by scheduling regular code reviews and setting up automated testing, which helps catch problems early and keeps the project secure and on schedule.
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