When an organization’s potential risks were determined and measured, the next step would be to identify the appropriate risk profile. In reality, the development of a risk profile is one of the first steps a company should consider. Risk profiles can be low, medium or high, depending on the careful assessment of the company’s financial status and needs, checking both strategic and operational factors. Dynamic risk management can add value by helping the company attain what it believes to be its proper risk profile, whether it takes the form of decreasing or increasing risk. Having a systematic plan in place for managing operational and strategic risk is essential to the success of any industry.
In program management, risk profiles are crucial in the development process. Risk profile determines the factors that may impact program management, and the risk areas needed to be considered. Program management often occurs in larger companies dealing with more than one project at a time. Say for example the production of a single computer requires a lot of single projects to take place, each has its own designing and manufacturing procedures. Program management focuses on selecting the best group of projects than can deliver results.
A risk profile, on the other hand, can be viewed as the key areas and risks of an organization, joined with broader portions such as operations, business development and overall strategic targets. However, one should bear in mind that it is also critical to understand that not only the specific risk factors should be taken into consideration but also the response associated with those risks and how they impact the organization.