| Risk management is the identification, assessment, | | | | greater insight into risks and their impact. |
| and prioritization of risks followed by coordinated and | | | | Risk management can be applied to all levels of an |
| economical application of resources to minimize, | | | | organisation, in both the strategic and operational |
| monitor, and control the probability and/or impact of | | | | contexts, to specific projects, decisions and |
| unfortunate events. | | | | recognised risk areas. |
| Project Risk Management | | | | Risk is defined as "the chance of something |
| A risk is something that may happen and if it does, | | | | happening that will have an impact on objectives". It |
| will have a positive or negative impact on the project. | | | | is, therefore, important to understand what the |
| A few points here. "That may happen" implies a | | | | objectives of the University, Faculty, work unit or |
| probability of less then 100%. If it has a probability of | | | | your position, are, prior to attempting to analyse the |
| 100% - in other words it will happen - it is an issue. | | | | risks. A simple process |
| An issue is managed differently to a risk and we will | | | | Risk analysis is best done in a group with each |
| handle issue management in a later white paper. A | | | | member of the group having a good understanding |
| risk must also have a probability something above | | | | of the tasks and objectives of the area being |
| 0%. It must be a chance to happen or it is not a risk. | | | | analysed. |
| The Risk Management Process | | | | 1. Identify the Risks: as a group, list the things that |
| Risk Management is defined in the standard (AS/NZS | | | | might inhibit your ability to meet your objectives. You |
| 4360:2004) as "the systematic application of | | | | can even look at the things that would actually |
| management policies, procedures and practices to the | | | | enhance your ability to meet those objectives eg. a |
| tasks of establishing the context, identifying, | | | | fund-raising commercial opportunity. These are the |
| analysing, assessing, treating, monitoring and | | | | risks that you face eg. loss of a key team member; |
| communicating". | | | | prolonged IT network outage; delayed provision of |
| It is an iterative process that, with each cycle, can | | | | important information by another work unit/individual; |
| contribute progressively to organisational | | | | failure to seize a commercial opportunity etc. |
| improvement by providing management with a | | | | |