Managing and mitigating risks in project management, finance business controlling and technical product quality is an integral part of today’s business environment.
- In order for a project to be successful, project risk management is an essential part of project management.
- In technical development, managing quality risks is important for customer satisfaction and meeting regulatory compliance. Many organizations use the FMEA methodology.
Opportunity and Risk Management: Challenges
Risk management is complex and involves planning, changing behaviour and implementation strategy. Today, not only risks focusing on negative effects are of focus but also the positive effects – referring to opportunity management.
I conducted a research project in a global technology company focusing on Project Opportunity and Risk Management. Several findings were highlighted such as:
- The need to understand and agree on a common definition of opportunity and risk
- One important step is to understand the components of what a risk is – namely the probability and impact. Also, professionals benefits of understanding the interaction between risk, uncertainty and objectives
- Opportunity and risk culture is varying within organizations and it is needed to look at the social behaviour of individuals and groups within an organization. Employees from different cultures have different risk attitudes and realizing this can be beneficial when implementing and working with opportunity and risk management.