Steps Of Composite Risk Management
When we talk of composite risk management, it is a nature of risk management which considers composite factors. Usually a risk is defined as an event or condition that has negative impacts on a project if it occurs. When it comes to composite risk management, there are certain steps that are involved. It is similar to any other risk management process but it is usually conducted by the army and military organizations. One can read up on the different steps involved in such a risk management process by looking up the online sources.
Composite Risk Management – The First Step Of Planning
When it comes to composite risk management, the first step is that of planning out a project. Here the planning pertains to risk management. The plan of risk management has to be created. Here the risks involved with a project are defined. Usually, risks are characteristic of each project. One needs to define a risk and then ensure that all are in agreement that it is truly a risk in the context of a project. When it is a matter of defining composite risk, there are usually many heterogeneous matters involved that need to be considered.
Composite Risk Management – Identification Of Risks And Gathering Of Information
When it comes to composite risk management, the first step to executing a plan is to gather all possible information about the project to be executed. That helps one to identify the risks that are involved. Not all possible risks are important for consideration and neither will they disrupt the working of the project. Thus, one needs to gather information about the risks and determine what kind of impact they can cause to a project. Accordingly, the risks should be categorized so that the actions against them can be planned accordingly.
Composite Risk Management – Assessing And Analyzing Risk
Once all the information regarding risks is gathered, one has to assess the risks and analyze them. The risks that are identified in the composite risk management process have to be analyzed properly. Then the risks are categorized as per likelihood of occurrence. Whether they will have high or low impact also needs to be assessed. In such a way a watch list is created. Once that is done, one will be able to plan out the responses to such risks as and when they occur.
Composite Risk Management – Planning Out Responses To Risks
In composite risk management, once the risks are assessed and analyzed, the response process to such risks is planned. How is risk response planning done? The negative risks that are identified, their probability needs to be calculated. Once the probabilities are calculated, their chance of occurrence need to be minimized through appropriate planning. Workaround plans are created and strategies in risk mitigation are planned. Then again contingency plans are put in place. The final stage consists of plan execution whereby one not only monitors the risk management process but keeps an eye out for new risks that can enter a system.