Dancing with bears (II)-Why risk management

 

Correct attitude towards risk management:

It is used to take risks, not to escape, without any risks!
Several key concepts:

1. Risks: events that may cause poor project results in the future; bad results themselves.
2. Differences between risks and problems: risks are non-existing problems, and problems are real risks.
3. Risk conversion: The occurrence of risks.
4. Conversion indicator: basis for judging whether risks have been converted or are being converted
5. Risk Mitigation: measures must be taken before risk conversion.

Risk management behavior composition:

1. risk discovery: brainstorm, screen, and maintain the mechanism of continuous risk discovery.
2. exposure analysis: Quantitative Analysis of the likelihood of occurrence and potential hazards.
3. contingency plans.
4. risk mitigation.
5. continuous risk conversion monitoring

No negative materials for risk management:

In April 1988, Denver International Airport's dia automated Bag Handling System (abhs );
The airport was extended by more than two years, resulting in over $33 million x 24

Reasons for risk management:
Make active risk exposure possible (hiding the possibility of extension or failure is not a kind of goodwill );
Legalizing risks;
Make the project develop toward success;
Draw borders for uncertainty;
Provides the lowest cost protection for the project;
Prevent responsibility deduction;
When the risk is converted, you can make up for it.

This article is from-qinhl99's column-csdnblog