Filling Execution Gaps by Todd C. Williams
Author:Todd C. Williams
Language: eng
Format: epub
Publisher: De|G Press
Published: 2017-03-19T16:00:00+00:00
Risk Governance
Every business manages risk. This is most prevalent when a company works in areas where it has little experience. Projects implementing new products or services are the epicenter of risk. The first line of defense in risk management is the project team. However, many project teams lack experience developing effective mitigation strategies. When risks are large enough to have a significant impact on the company, a group of specialists should be assembled to monitor and control the exposure. This group functions similarly to the role of an actuary in an insurance company—developing strategies around exposure, probabilities, and mitigations to minimize a company’s exposure.
Key indicators for a separate governing body over risk include:
–Heavily interwoven dependencies between multiple projects.
–Major complexity in projects.
–A large percentage of the organization’s assets at risk in a small number of projects (that is, nuclear reactor construction, pharmaceutical and commercial aircraft development, and so on).
–Numerous high-risk projects.
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