The Management of Risk (M_o_R) framework is a cycle that flows through identifying, assessing, planning, and implementing. It is illustrated as a cycle as it is designed to be referred to when new information arises to actively manage ongoing risks.
The first step aims to identify and gather as much information as possible to help us understand the context in which the project or programme is taking place. The more information obtained the clearer our risk register will be, and the easier it will be to manage and accurately predict risks.
There are three elements of context that are important to the identifying stage: context inputs, context outputs, and context tasks. Listed below are some helpful input and output questions you can consider when looking to identify context.
Identifying Context: Eight Input and Output Questions
1. What regulatory framework and corporate governance requirements do we need to follow?
Depending on the project it may be important to understand your organisation’s pre-existing frameworks and requirements.
2. Do we already have a risk management policy?
If yes, you may need to learn its guidelines and consider the organisation’s appetite for risk. The risk management policy should outline who is responsible for the management of risk across the organisation and who is accountable.
3. Do we have a risk management process guide?
If yes, you may want to consider how you are going to implement the processes guide into your plan.
4. Do we have the appropriate activity documents related to the project?
For example, the purpose of the operation, interfaces with other operations, stakeholder information, market research, operational dependencies, equipment, and constraints. What information are we missing and how will the team find it?
5. What have we learnt from the past?
Seek out and examine any lessons learned documents to understand what has and hasn’t worked in past projects.
6. What assumptions have we already made about the project?
It is important to address the assumptions being brought to the project. Record these assumptions and refer to them in later steps to verify their validity.
7. What are the goals we hope to reach by implementing risk management?
Write these down including the roles and responsibilities and agree on when you will plan to re-assess these goals as a team.
8. Who are our stakeholders?
Details of stakeholders should be recorded and categorised based on their involvement and interests. This is important for stakeholder communications. To learn more about the skills needed to influence and engage stakeholders click here.
To challenge yourself further and learn more about Risk Management join us for our Management of Risks (M_o_R) course in Wellington.
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