"Risk management is just project management"
(Under Eric Verzuh)

Risk management in any project or organization, is an important task. Risk is characterized as outcome uncertainty by M o R (Management of Risk, the OGC risk management methodology). A risk manager is concerned with handling the risks (uncertain problems and incidents) that would impact the goods or services to be provided by an company if they were to arise.

The M o R system outlines three essential steps that can be implemented in an organizational or project context to effective risk management:

• Identify the
Risk recognition is the first step toward risk management. It involves identifying and explaining any risks that could impact the achievement of objectives to ensure that all relevant people involved in the company or project operation have a shared understanding of these risks.

Risk detection strategies can differ based on the size and scope of the organization, the complexity of the task or project and the risk management team's expertise. Of example, risk management within a small software company, based on the developers' experience, can include brain-storming and assessing possible risks to the project. At the other hand, a large government agency may rely on the expertise of risk reduction professionals who have managed risks across a number of similar organisations. Project managers who are responsible for risks to a technical operation may call on expert authority to highlight the related risks.

• Auditing
Evaluation is key to managing risk effectively. Without a careful review of the risks described in phase one, the risk manager can fatally underestimate the potential impact of a particular risk, or attempt (also fatally) to counter each and every risk, without understanding how likely a risk is to occur.

The two things to remember when assessing risk are:
O Wahrscheinlichkeit
O Last Affect

The organizational nature of the risks often needs to be aware of the persons responsible for managing risk. For example: Risk A can affect output 1 more than the impact of Risk B on output 2. Nevertheless, if output 2 is more important to the overall goals than output 1, then risk B may be considered more important than risk A.

Ranking risks by immediacy, effect and organizational context helps risk management to evaluate and prepare how to monitor individual risks.

• Check in
The risk manager will determine the correct response to a risk and appoint a risk owner, who must ensure that the risk response is performed, tracked, and regulated Free Reprint Papers.

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