An issue used to be a problem. Simply an issue can define as a present problem. Issues should be logged and escalated to the person who can address or eliminate them. To identify and resolve issues in a project or organization issue management process is used. So Issue Management Process will be use to identify and resolve issues quickly, before these issues have an undesirable impact.
Risk is simply a factor, thing, element, or course involving uncertain danger. Normally risk represents uncertainty. Because, this can caused by any number of factors. So it is often mapped to the probability of some event which is seen as undesirable. However risks can be reduced or managed. However there are some instance that there is a greater the difficult in managing towards a successful completion. That's why it is really important to think about the risk and prepare for it in case it occurs.
One way of putting figures to risk is to calculate a value for it as:
Risk = Threats x Vulnerabilities x Impact
Risk management can define as a logical process that seeks to eliminate or at least minimize the level of risk associated with a business operation. This process of assessing risks and taking steps to either eliminate those risks. This is done by using control measures. This risk management process identifies any type of situation that could result in damage to any resource in particular situation. So this will allow managing in an environment which is uncertain.
There are different types of goals in risk management. We can define the primary goals in risk management as follows,
- To combine concerns which are related to the risk of the organization's regular decisions, and the creation of the implementation process.
- To place a heavy emphasis on the allocation implications of resources.
- To develop an understanding of both the trade offs as well as the opportunity costs that come with any given decision.
Basic Risk Management Process
When we go through the basic risk management process we can identify that there are three key steps to a project risk management process.
Involves constant scanning of internal and external factors that could impact the project to identify any potential events that may impact project costs, quality, scope or timeline.
Involves risk analysis in the form of quantification of the likelihood of a risk occurring and the magnitude of its potential impact on the project.
Refers to the way in which the risk is decided to be dealt with. It may be decided that the risk is to be just monitored, mitigated or moved.
There are number of benefits of Risk management
- Improved working environment
- Better strategic awareness
- Supporting effective use of resources
- More effective management of change
- Promoting continuous improvement
- More informed decisions
- Allows high level risks to be addressed early in the life cycle
- More efficient use of resources
- Improves confidence in cost and schedule estimates.
- Improves communication amongst project team and end users
- Formal documentation of risks
- Managing financial risk better
- Improved probity and enhance asset protection
- Improve service delivery