The risk management comprises the examination of the existing risk factors and looking for the addition of new factors of threats for the prevention to be done even before the occurrence of any problem. Base from the results that determine, prioritizes, and assesses the risk factors, from the consequences and probability of failure; the organization creates a preparation for actions and plans the risk management to get the most out of the chances of having the desired result and at the same time minimizing failure risks.
The objective of planning risk management is to have the actions that must be done to correct the existing risk for each of the risk factors identified specifically the risks with a moderate to high level of rating. The first step to be done by the organizer of the project is to prepare and create a risk management plan. The final risk management plan should be subjected for review by the members of the quality assurance.
Looking on the data given in the risk management plan, and analyzing the risks, the team for the quality assurance of the project make some adjustments or sometimes retain the assignments initially listed in the risk management plan.
The factors that have a high risk are given priority to be included in the risk management plan. The factors with a lower risk are addressed upon the availability of the resources. Having a guide for quality assurance will enable the organization to have low risk factors and the right risk management plan for the specific project.
Identification of potential risks, may it be the source of the problem or the problem itself, is the first step of risk management process. When we say “risks”, it refers to the events or factors that may arise on a certain project that may cause problems or trouble once generated or triggered. Sources of the problem can be either internal (such as dissatisfied employees of a company) or external (bad weather conditions). Other potential threats include losing money and accidents or casualties. This is the reason why risk management plays a very important role in the selection of cost effective measures to minimize the effects of risks in an organization.
A risk management template is used in helping risk managers to identify, track, quantify and mitigate problems or threats within a project. Project risk management template will aid in preventing risk from happening; as well as reducing its impact on the project should it even cross the line. The template also monitors and reports the overall status of risk throughout the project.
The development of the template will depend on which method of risk identification will be used in a project. Such risk identification methods are tied up with a risk management template that will definitely help in achieving wanted project results. Some common methods used are the following: Scenario-based risk identification is a method in which various scenarios were identified to separate the desired output from the undesired; Objective-based risk identification is a method in which events that may cause hindrance in achieving an objective are identified; and Taxonomy-based risk identification is a method in which a list of possible risk sources were generated from the answers taken from a survey questionnaire.