Risk Management - Guidelines

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Practical Guidelines for Managing Risks

The following guidelines will serve you well as you strive to manage and control risks:

  1. The future is uncertain, and in uncertainty, there are both opportunities and risks.  Outcomes are just as likely to turn out better than expected as turning out worse than expected.

  2. High opportunity and returns are most often associated with high risks.

  3. Risks cannot be avoided as life itself is a risk, but risks can be managed and controlled.

  4. Anticipate what problems might develop before starting and find ways to avoid or fix them if they happen.

  5. Monitor progress in implementing the plan for signs of deviations and resolve risks or problems early before they grow too big.  Anticipation and early interventions are the key to avoiding the downside of risk. 

  6. Prioritize the known risks and reduce the biggest risks first.

  7. Every risk has a root cause.  Reduce risks by resolving or removing the root causes, not the obvious symptom, before implementing the plan.

  8. Assign responsibility for risk management to the team in general and some in particular so that risks are watched, measured, and daily actions are taken by the team to avoid them.

  9. Select proven solutions for implementing decisions.   Most risks can be avoided by selecting achievable objectives, developing a realistic and actionable plan, experienced management, sufficient resources and know-how to do the job.  

  10. Use standardized, proven, best practices to get work done as this avoids most problems.

  11. Sometimes the better solution to a bad start is to start all over and begin anew with all the lessons learned from the first attempt. 



Website last updated on 10/19/08
Copyright 2005 Charles W. Sooter.  All rights reserved.