In setting up a risk management plan Advanced Private Investigator & Security of Fort Lauderdale Florida can assist you in a plan for two scenarios:
• Daily Operational Risk Management
• Project Oriented Risk Management
We define risk in terms of probability of an event occurring that could have either positive or negative impact of a project or going day to business operations. Risk can be the result of one or multiple causes and if it occurs multiple impacts. All projects or business operations assume some element of risk. Risk management tracks and monitors those events that have the potential to affect a project or day to day operations. Risk is not static it is ongoing as is the risk management process. Take for instance the current tariffs on Chinese goods. Not a foreseen development years ago, but the impact on businesses that have come to depend on Chinese manufacturers of their goods, and many stalwart brands have pushed production of their wares to an Asian source. There is a life cycle to risk management as new risks are identified and can arise at any time. On the other hand, an event can be a positive one and must be exploited.
Goal & Role of Risk Management
Starting a risk management plan the initial risks will be identified and planning will include either avoidance or management of an incident. But as time progresses so will the list of risks. In daily operations and the ongoing development of a project, risks will continue to be identified and the plan will provide either an avoidance strategy or a mitigation plan. The root of risk management is to decrease the probability and impact of incidents that are averse to the operation, daily or specific to a project plan.
Importance of Risk Management Plan
When a risk is identified the first thing to do is to ascertain it’s probability of occurrence. The degree of impact and the scope, cost and quality and these are then prioritized. Some risks represent only one impact point to the project or general operations of the business. Others can have multiple impacts that can ripple across the organization. The probability of occurrence, number of categories impacted, and the degree using terms high, medium and low, to which they may impact the project or business operations and then are assigned a risk priority. All identifiable risks should be then entered in the ‘risk register’ and documented as a risk statement. Areas that affect daily operations and represent risk are related to insurance matters and include litigation, injury and other matters that will impact the operation. Many risk managers of daily operations have a background in the insurance industry.
Components of Risk Management Plan
Part of documentation of a risk includes:
• Mitigation strategy lists the steps to lessen the probability of an event occurring. Mitigation actions frequently have a cost associated with them. Sometimes the cost of mitigation can exceed the cost of assuming the risk and dealing with the consequences. The risk manager must evaluate the probability and impact of each risk against the mitigation cost before implementing the contingency plan.
• Contingency Plan is a series of activities that should taken prior to, or when the event occurs. Contingency plans implemented before the risk event occurring are pre-emptive actions intended to reduce impact or negate the risk in its entirety. Post event contingency plans only lessen the impact of the risk.
Documenting the identified risk related events is only the first step. The risks should be monitored on a scheduled basis and reported by the risk manager on a status report, this holds for either the operational risk manager or a risk management team assigned to a project.
Private Investigations, Security & More in Greater Miami, Sunny Isles, Fort Lauderdale, Boca Raton, Weston, Plantation City & Miami Gardens Florida
Many of the daily operations that pose risk, one is security. Security flaw identification can improve operational related activities and improve the opportunity to avert future negative impact. Many of your employees may have their a more than full workload and not have time to explore operational risk management thoroughly, though at least a tentative effort is usually made at identifying risk when a new project is planned. Fresh eyes from outside your organization may see things that have been subconsciously marginalized by routine exposure. Advanced Private Investigator & Security of Fort Lauderdale Florida can meet all the risk management needs for your business. Contact us to get started today!