“…the process involved with identifying, analysing, and responding to risk. Risk is part of every project we undertake and the objective is always that to maximise the results of positive risk whilst minimising the impact and consequences of negative events”
Changing Business Environment
Funding the digital agenda, managing risk and reducing costs are possibly today’s true pain points for organisations and businesses. Addressing the above three aspects effectively will essentially dictate the destiny of each organisation. Organisations need to ensure that projects and offerings are sensitive to the developments and risks brought about by the new digital age. Historical data shows that 89% of companies forming part of the Fortune500 list in 1955 no longer exist
CHANGING BUSINESS RISKS
Continuous business transformation and increased adoption of the 3rd platform is rapidly shifting and changing the way projects originate and are implemented. Going forward an effective risk management approach needs to continuously adjust itself to meet the constantly changing business risk.
WHY DO WE MANAGE RISK?
Project setbacks can be reduced substantially by embracing the correct risk methodology as an integral part of project planning. Recent history has indicated that planning and controlling project risk is critical to secure high-quality project outcomes in today’s fastpaced environment. Some positives include: § Broader info available during the planning phase § Improved probability of project success in meeting the intended scope Perceived negatives include: § Belief that all risks are accounted for and controlled § Project cut short due to risk level (negative from a project promoter perspective)
RECENT EVOLUTION OF RISK MANAGEMENT