In the course of our everyday activities, we take many risks. Some of them are very real to us and some we hardly notice. In the business world, risks can affect the company in many ways, even to the extent of causing it to go out of business. Now that you have read about risk management and the reasons for doing it and not doing it, let's talk about the risks you face in your everyday life and why you would choose to do risk management. I know a lot of my risks come from decisions I make towards my daughter. For example is sending her to private school for pre-k actually going to benefit her in the long haul or is it just putting a huge hole in my wallet? Is what she learning there worth the stretch in the budget? As a runner I take risks with my life. If I run late at night on an isolated trail I am risking that nothing will happen to me as far as being attacked or tripping in the dark and getting injured. The book was correct when it mentioned that risk management is a huge part of common sense. Risk management exists because of the question IF I do this Then the outcome is that. Life is made of choices; you can’t go an hour without using risk management. Well, let me rephrase, any competent person can’t go very long without choosing to do some sort of risk analysis. Risks are existent and everywhere whether we realize it at the time or not which is why it is important to acknowledge the certainty of things not always going as planned. IF I accept the risk exists THEN I can decrease the adverse effect of these risks.
The ATOM Risk Management Process is designed to be a simple, scalable format for performing risk management that can be applied to any project. Why do you think that it is a benefit to carry out a risk management process? Risk management may no longer be a choice for project management. It seems if you don’t include risk management in projects you can’t obtain the full benefits of all your efforts. I think that businesses have learned quickly that their company can encounter a number of expensive problems when risks are not calculated in to their plans. To their competition they can seem ignorant and overly confident that no menaces will occur. Professional companies should make risk management part of their day to day operations to minimize surprises, improve planning and performance, make better decisions. Risk management also opens lines of communication between the team leaders and the stakeholders. If stakeholders can be informed earlier on about potential risks they will be more appreciative of those working and able to aid in coming up with solutions. Opportunity Lost
| Professor Dezell
| 10/22/2011 7:25:57 PM
| ~~ALL~~ What is "Opportunity Lost", and what would it have to play in the study of risk management. This is where you need to start thinking outside the box as that is where much of Risk Management comes from. Critical thinkers should like this one so it should create some conversation.
Opportunity lost is a small window of chance not taken. I say chance because most of the time the offer brings some sort of additional incentive for the buyer, along with a recognized consequence of risk. Opportunity lost occurs in circumstances when a decision maker analyzes the window and focuses only on the risk then becomes hesitant to pursue that path, thereby forfeiting their opportunity for gain due to fear of the risk. In the study of risk management, opportunity lost is an area that requires weighing of what is planned to happen and what could possibly happen when given more choices. Opportunity lost is money lost. There are two ways a buyer can decide which road to travel, they can either flip a coin or go with an option that is safe but making small monetary returns for the company or they can study the decisions ahead of them and come up with many different outcomes. Risks may be high but monetary value may be much higher than the first option. From the ATOM book
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