αlpha consulting
inc.Risk Management
There is no undertaking that does not have an associated element of risk. But what is Risk?
Risk is an event, which if occurring has the potential to affect the quality of the outcomes you are accountable for creating. Although sometimes things turn out better than you planned, most business people see risks as an impediment to achieving the targeted quality of results.
IT is important for managers to notice the direct association between risk and outcomes.t. Whether we speak of results, outcomes or accomplishments; most senior managers understand that it is the quality of the results and not just the activities which matter in the final analysis. Furthermore, we all need to recognize that employment is a contract with pay as your return for the quality of the outcomes you are expected to deliver. Testing the validity of this statement is not recommended.
We recommend that you mitigate the likely impact of risks upon quality of your intended outcomes using a four step IQPM risk management process. The fifth step, the meek but powerful DOCUMENTATION, is critical to creating quality results repeatably and becoming a learning organization to produce your results more efficiently and pioneer effective new opportunities.
alpha can assist your organization in assessing its risk position from a number of perspectives:
Once the assessment diagnostic is completed, management will be able to make informed decisions on how to manage down the risk while increasing the value of your deliverables.
Project and Program Risks
From an early age we learn to identify the sources of risk, assess the
probability and consequences of risk, and learn to avoid or manage risk and
uncertainty. Yet, despite decades of training beginning at infancy, managers
within organizations have a poor statistical record of managing risks
effectively. For evidence, we need to look no further than the corporate fraud,
mismanagement and stock market irregularity cases in the news. ENRON, Nortel,
the power shortages in California, and the politically charged issues recently
uncovered by the Office of the Provincial Auditor and the Auditor General of
Canada closer to home is more than enough evidence to prove the point.
Quality gurus, Dr. W. Edwards Deming and Dr. Taguchi somewhat later identified
that about 85 percent of poor quality is attributable to the process and only 15
percent is attributable to and controllable by the worker. Additionally, as the
saying goes,
*When you place a good person in a bad process,
the process wins every time.*
As such, all measured performance variables affected by risk, whether quality,
financial return, client satisfaction, capacity utilization and so on; occur
within the context of an organization*s processes.
It follows then that the greatest portion of the risks we face are attributable
to the failing grade of processes throughout our organizations. This has long
been recognized by managers in manufacturing but perhaps less so by managers of
other sectors, including government, where processes are seen as more difficult
to measure.
The formal collaboration between INCOSE Risk Management Working Group, the
Project Management Institute's Risk Management Specific Interest Group, and the
UK Association For Project Management Risk Specific Interest Group; defines
organizational risk management maturity by the quality of the risk management
processes in place to for each of the four major steps.
Effective risk management requires all of the steps below.
1.Identify risks
2.Quantify risks
3.Plan for risks
4.Monitor and manage risks
and..... Documentation
Contact alpha by phone or e-Mail at the addresses in the bottom banner below for an informal consultation about your organization's position.
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