If you don’t conduct a risk analysis, problems may arise during the development process: underestimation of the complexity of tasks; insufficient resources; there is no one to make decisions; changing customer requirements. Unaccounted project risks can cause employees to miss deadlines, which can negatively impact relationships with the customer.
Benefits of Risk Management
The main advantages of risk management: Loss Protection Risk management always helps to anticipate potential problems and take measures to prevent them. For example, a company that imports raw materials can enter into a contract and fix prices. This will help prevent losses that are caused by a sudden increase in the cost of raw materials. Increasing the efficiency of business processes and strengthening the team. Risk management allows you to manage resources, tasks and money more effectively.
Thanks to risk management
project participants or company employees are not drowning in deadlines and are confident in the future. This has a positive effect on the motivation of the team . Improved reputation. Companies that demonstrate responsibility towards threats gain the trust of their customers, investors and partners. This helps to strengthen their reputation in the market.
Disadvantages of risk management
The main disadvantages of risk management: Overestimating threats. Sometimes avoiding all risks can slow down business development . Financial burden. A risk management system may require significant financial resources. Money is needed to train or hire experts, purchase software . False sense of security. By avoiding risks, businesses may mistakenly believe that they are completely protected from any kind of problem. This leads to insufficient response to emerging new threats or possible changes in the market. Risk classification Globally, all risks are divided into controllable and uncontrollable.
The first group is those threats
That can be influenced. For example, a company can control its own production or work on its reputation. But on the contrary That is why such threats are called uncontrollable. Controlled risks There are 6 types of controlled risks. 1. Commercial. These include all external or internal factors that may lead to increased costs or decreased profits. Such risks are associated with possible changes in the market, competition, or a sharp increase in the price of necessary materials.
