PDF - Risk Management Best Practices 2013 - Examples and Lessons Learned.

1. Risk Management Best Practices
Learn from the Industry. #Top10

2. 1. Identifying and assessing risks
• Risks are everywhere. To be successful as an
organization is crucial to identify assess and manage
any risks that could affect business. To identify risks for
an organization, it is important to look to the specific
characteristics of the market and environment in which
the organization operates.

3. 2. System approach
• To manage risks properly and effective a system approach is
necessary. Invest in the right tools and knowledge to identify
and quantify risks.

4. 3. Risks often consist of a serial related events
• When an organization identifies quantifies risks and establish
action plans it is important to keep oversight on the
interaction and relationship between the various risks. This
allows an organization to respond better when an event
occurs.

5. 4. Risk management is a continuous process
• The market is changing, the world changes and so do the risks
change. To effectively manage risk, it is important that risks are
regularly evaluated and adjusted. Another important aspect of the
risk management process is identifying and assigning ownership.

6. 5. Provide dedicated resources and clear
responsibilities
• Effective risk management requires staff with knowledge and experience
in this field. As an organization you can and want to invest here. Make
the right managers responsible for managing specific risks.

7. 6. Analyze the costs of mitigation
• The creation of programs or actions to manage risk and control will
require additional investment.

8. 7. Minimize opportunities
• Risks are directly related to the activities that an organization performs.
By selectively in the structure of the organization and business risks can
be minimized.

9. 8. Assessing the risks by an external party
• Use a third party (someone with knowledge of risk management) to the
identified risks to be assessed. The feedback from an external party can
be very enlightening and perhaps lead to new insights. If possible, it is
highly recommended to have a professional third party to support the
whole process of implementing a risk management process.

10. 9. Monitoring of risks
• Invest time in the development of a management dashboard with which
risks can be easily analyzed. Combine the risks in the dashboard and
how these impact on the organization.

11. 10. Create a risk management culture
• Successful risk management implementation requires:
• Train the organization in the practical aspects of risk management.
• Training should focus on all available positions within the organization
including management.
• Clarity about the responsibilities of all stakeholders with regard to risk
management.

12. Examples to promote risk management:
• Involve all employees in the risk management process;
• Management should encourage and support positive risk management process;
• Create clear roles and responsibilities;
• Invest in training to increase employee knowledge;
• Take on risk management as an integral part in such work discussions, meetings
and appraisals;
• Define clear risk management objectives for the organization;
• Assess employees for their input to the risk management process.

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