Netting, Close Out, and Acceleration
Netting is a procedure that is commonly used by organizations all over the world to reduce their counterparty credit default risk. However, in order for the netting procedure to be carried out, companies should have contracts in place prior to the default event taking place. There is another procedure called close-out which is closely related […]
How to Address Career Gaps and Other Career Weaknesses in Your Resume
What is career break or career Gap? Career gap is a time period when you are no longer associated with any organization after leaving one. A gap of 2-3 months is not very astonishing but more than 6 months or year surely raises a red flag in recruiter’s view. People often take a break either […]
Sensation and the Sensory Organs (Gustation, Olfaction, Somatosensation, Proprioception and Kinesthesia)
Gustation (Sense of Taste) The gustatory system comprise of three crucial parts: the mouth, tongue and also the taste buds which helps us in perceiving the sense of taste. Both the gustatory system and the olfactory system (sense of smell) follow chemoreception process. The process of Chemoreception allows the human sense organs to interpret the […]
Determining Forces of Organizational Change
Organization as a system, depend on many interdependent factors which influence it’s day to day functioning, strategic decisions and future action plans for facing the competitive challenges successfully. These factors can be both internal and external in nature and determine an organization’s readiness for change as well as it’s preparedness. External Forces of Organizational Change […]
Benefits and Drawbacks of Indexation Clause in Reinsurance
In the previous article, we have already seen what an indexation clause in reinsurance contracts is. We are now aware of the purpose behind having indexation clauses in reinsurance contracts. We also know the various variations of the indexation clause which are common in the marketplace. However, before taking a final decision on whether or […]
Any project immaterial of the size of the same carries a lot of risks, which may be financial, non-financial, legal or physical.
Having an effective risk management plan is first and foremost to the success of any project. The task is to anticipate these risks well in advance before the project takes off.
A good risk management plan carries number of tools and strategies to mitigate risk. The strategy may be to avoid risk or transfer a component of it another project so that the impact is reduced.
Other risk management strategies may suggest the acceptance of the risk. This is decided after a thorough cost/benefit analysis. The risk management plan also depends on how the risks are prioritized by the organization.
Based on relative priorities risks are given weightage, for example a certain organization may be more concerned about the physical and legal risks, whereas another organization may be focusing on operational or strategic risks.
Risk priority defines the strategy and finally the plan.
Besides keeping the risk management cycle in mind; before the final draft, an effective risk management plan may traverse through following:
Enlist the categories of the project and then evaluate each for risks. For example there may be a cost category; determine the factors that may increase cost and make a list.
The formulation of the plan is in tandem with the risk management cycle which acts as the basic guideline. Both work in sync, in fact the interventions in step 3 discussed above cannot be without a thorough understanding of the cycle.
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