Question

please discuss the following in detail and share sources

1. What are the main objectives of a risk management plan, and why is it so important to implement one.

2. What are some of the key elements a risk management plan should include to ensure its success? Why?

3. What key role does compliance play for any industry? Why do you believe is important?

4. Please explain your understanding of organizational policies for compliance.

5. Explain the purpose of charting and reporting findings, and why this is a critical step in risk management.

Answer 1

1. A Risk management plan aims to recognize and manage potential and unforeseen problems that may occur when the project is implemented. Risk management plan identifies as many risk events as possible (what can go wrong), minimizes their impact (what can be done about the event before the project begins), manages responses
to those events that do materialize (contingency plans), and provides contingency funds to cover risk events that actually materialize. It’s objective is to decrease the probability and impact of events adverse to the project. Along with this, any event that could have a positive impact should be exploited in the plan. The main objectives of risk management plan can be broken down into 3 parts:

1. Detection of risks: It is the identification of the threats and vulnerabilities which can affect the organization’s assets. It is essential to have the necessary expertise for identification of risks as they can originate from anywhere and don’t follow a fixed pattern. Detection is often the toughest part as risks can often be ignored.

2. Analysis of risk : It deals with collection and then calculation on data regarding risk exposure. It is necessary for the company to take appropriate decisions and manage risks. Accurate analysis of the risk helps in implementing better solutions.

3. Control of risk : It deals with making decisions after observing the surroundings in order to ensure that the older threats and vulnerabilities are effectively countered.

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