Everyone knows in their own language what is risk analysis? and what is risk management? But no one knows who is working for this? How is working? What is the motive for risk analysis and risk management? Why do we need it for our startup business, growing business, progress business, multinational business?
In today so many companies, businesses, small startups, biggest projects, small projects every one starts their work with risk analysis. In our traditional business process also start with the risk analysis process. Risk analysis measured your becoming growth, business assets value, business services values, and also we ready for fight against risk. We can manage our upcoming risks. We can be planning for our risk and it’s possible we can prevent or reduce the major levels of risk.
So…Now we started our questions answers. Try to understand why we need risk analysis based on our work.
What is Risk analysis?
Risk analysis is identified and understood the potential issues that could impact the negativity for business and projects.
Risk analysis is an Identify the risk, Analyze the risk, Evaluate the risk, Treat the risk and review them about risks.
Why Risk analysis is important?
When we focused suddenly that time we don’t have any choice to manage the risk or don’t know how to survive the risk. And all these situations we make the worst decision or are not able to face the risk. If we know what types of risk can be raised and what types of preparation we need to do so we can survive and reduce or prevent the risks
How to work with Risk analysis?
- Identify the risk
Identify the potential risk and consequences of your actions that you will think about; discuss the risk with your team members and take their opinions into consideration. The first part of starting a project or business is talking about the risks we will face in the future like human, political, natural, technical, financial, procedure, project, employees. How can we face these risks and can we handle the risks in the future?
- Estimate the risk
After you identify the potential risk, you should determine whether they are likely to be realized, as well as what effect they may have. For estimating the value of risk, multiply the probability of occurrence by the event’s cost.
Risk value = Probability of event x Cost of event
- Complete the risk analysis model
WIth RIsk identified and level of Estimate the risk we should make the one basic model for the risk analysis. Need to create the completing model start to scratch to the end i.e input labeling, process algorithm, and end-labeling with expected results during the project process.
- Implement the solution
Create an analysis model after Implementing this model into the project and start the act for your process area. Considering the risks versus the benefits might mean proceeding with a project under certain conditions or declining to initiate a project entirely. Additionally, many other challenges that you have not anticipated in your analysis may arise during the process. Review the result.
- Review the risk
After implementation, the solution should be checked this solution can be worked or not create or review the expected result and the actual result
What is Risk management?
Risk management analyses, Identified, prioritize the risk, and try to reduce & prevent the risk for business and projects.
How to Prevent the risk?
- Avoid the risk.
Some cases need to avoid the risk. I.e could avoid the risk like so many high activities ignores the at some moments if we can get an idea this activity is too high and increase the risk of a particular project portion so kindly we can ignore the activities.
- Share the risk
You could also share your potential risk, threats with your team member, organization, and some third parties.
- Accept the risk
Our last option is to accept the risk when we have nothing to do for our project and business risk that time just simply accepts the risk and find it out how to reduce and prevent the risk for a better future. Thinking about the How to gain our sales against the risk.
Whenever you decide the accept the risk before the also analyze the risk cost and what is the loss if we accept this risk. You need to be ready with your strategy to fight against risk and our strategy will work or not.
- Control the risk
When you are not able to avoid and share the risk and accept the risk so now you need to control the risk.
How to control the risk?
When you need to face the risk of you know about the risk what type
Of risk is raised so you need to train your employee, ready with experts, skills, and experienced employees, firewall protection, cross-platform testing, daily review, prevent the server failed and so many things that need to take care of.
If you identify something wrong which can be raised the risk so take some actions to reduce the risk and avoid the risks don’t be avoided and neglected. At the same time, you need to do take an action to fix the issues so you can prevent them from becoming a risk and also stop the increase the risk.
The main key of the control the risk Plan-DO-Check-Act
I hope you enjoy this article. If you have any suggestions for us please drop the comments.