Essential Areas That Risk Intelligence Should Address

Whenever one is starting or running a venture, there is always an aspect of the unknown. You do not know how your customers might react to changes in your products or services or how such changes might affect your best employees. This is why every manager should have great interest in risk intelligence. Many people also make the mistake that this area is only meant for technical specialists.

There are various steps involved as one tries to tackle various risks. The first major step is identifying which risks can be learned. Once you establish this, you can be able to reduce uncertainty by discovering more information about the risks. You should not only concentrate on the risks you can learn, but you must also identify which ones you can learn about fast.

It is also important to learn how to define the possible risks. This is because different people will have different opinions about the effects of a certain risky project you are about to undertake. Therefore, something might appear to have minimal effect by your standards, but to another person, it can spell the doom for your company. Therefore, you should have unified standards. A good way to do this is to state the risk, its probability of happening and the costs that will be involved.

You should also have a plan on how you will be tackling risky projects. One of the best ways to do so is by taking one risky project at a time. This will give you time to learn as much as you can about it, before you start dealing with something new.

While learning about a certain risky project, there are various angles to look at. For instance, you must try to identify the threats clearly. Threats can be human if they are caused by actions of other organizations, sickness or even death. The threat could also be operational resulting from disruptions in supplies, loss of important assets, or failure in distribution. Actually, there are so many types of threats including political, technical and financial, therefore make sure you identify all of them.

Another very important thing you must include in your risk intelligence plans is estimating the risks. This means trying to work out the likelihood of the threat materializing and the impact it will have on the organization. This is one of the hardest parts since it is very hard to tell whether a certain threat will materialize.

You should also have a plan on managing the risks. Since you have already calculated the effect of threats materializing, you must look for ways to manage them. As you do this, you must look for cost effective options. This is important because there is no need to spend more dealing with a threat that what its effect would cost.

The last major step that must always be included in your risk intelligence plans is review. Regular reviews must be carried to ensure that all threats addressed are current. Addressing all the areas stated will help you carry out your plans better.

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Posted on 2011-12-07, By: Adriana Noton *

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Note: The content of this article solely conveys the opinion of its author, Adriana Noton