MSG Team's other articles

10738 Problems Faced by Less Developed Countries

Population Growth Among all the developing countries, population growth remains one of the reasons for these countries to remain poor. To take specific examples, both India and China have historically been among the poorer countries because of their huge populations. It was only after the economic liberalisation and opening up of their respective economies that […]

11479 What is Tail Risk and How to Manage it

Most of the literature in market risk management is dedicated to explaining the methods which are used in the management of regular market risk. This means that importance is rightly given to the management of the cases which are likely to occur 99% of the time. However, the recent past has shown us that there […]

10662 The Political System and Civil Liberties: Theory and Practice

The Concept of Civil Liberties and Human Rights An important topic in political science concerns the provision of civil liberties and the practice of human rights in modern nation states. It goes without saying that in dictatorships, civil liberties are curtailed, and human rights are nonexistent. Hence, our focus in this article is on the […]

9687 Some Pointers on How to Avoid Workplace Violence

The previous articles in this module introduced the phenomenon of workplace violence with some contemporary examples. This article provides some pointers on how to avoid the same and prevent violent incidents from happening. First, it should be noted that early signs of potential workplace violence should not be ignored and should not be left for […]

10780 Non-Profits: Program Evaluation and Monitoring

The need for program evaluation and monitoring Though the non-profits sector is not a sector where each pie of money spent needs to be accounted for under the law, nonetheless, since donor funds are involved, there is a need to evaluate the programs and monitor them for leakages and fraud or even for the simple […]

Search with tags

  • No tags available.

A risk management plan can never be perfect. However, the degree of its success depends upon risk analysis, management policies, planning and activities.

A well-defined management plan can be successful only if risks are properly accessed. And if not, the main objective of risk management plan itself is defeated.

Critical evaluation of a risk management plan at every stage is very necessary especially at an early stage. It will allow companies to discover the flaws before it gets into the action.

Once you’re through the process, you can address the issues and then introduce it.

The below mentioned steps can help in analyzing and evaluating a risk management plan:

  1. Problem Analysis: Keep a note of all the events and activities of a risk management plan. Check out the problems arising from their implementation and assess if they have a serious impact on the whole process. Make a note of those that have serious implications.

  2. Match the Outcomes of a Risk Management Plans with its Objectives: Ends justify means. Check if the possible outcomes of a risk management plan are in tandem with its pre-defined objectives. It plays a vital role in analyzing if the plan in action is perfect. If it produces desired results, it does not need to be changed. But if it fails to produce what is required can be a really serious issue. After all, an organization deploys its resources including time, money and human capital and above all, the main aim of the organization is also defeated.

  3. Evaluate If All the Activities in the Plan are Effective: It requires a thorough investigation of each activity of a risk management plan. Checking out the efficiency of all the activities and discovering the flaws in their implementation allow you to analyze the whole plan systematically.

  4. Evaluate the Business Environment: A thorough study and critical evaluation of business environment where a risk management plan is to be implemented is essential. Take time to assess, analyze and decide what exactly is required.

  5. Make Possible Changes in Faulty Activities: After evaluating the effectiveness and efficiency of all the activities, try to make possible changes in the action plan to get desired results. It may be very time consuming but is necessary for successful implementation of your risk management plan.

  6. Review the Changed Activities: After making changes in already existing activities and events of a risk management plan, go for a final review. Try to note down the possible outcomes of the changed activity and match them with the main objectives of the risk management plan. Go ahead in case they are in line with them.

Evaluating a risk management plan sometimes can be very frustrating. It is definitely a time consuming process and also requires more of human efforts. Therefore, it is always better to analyze and evaluate a plan at every stage otherwise it will result in wastage of time, finances and efforts. In order to keep a check on it, specialized teams of risk managers can be appointed. The whole event can be outsourced to a risk management firm. The professionals at the firm can help you design, develop, implement and evaluate a risk management plan for your company.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

The COSO Framework for Internal Control

MSG Team

The Cost Structure in the Insurance Industry

MSG Team

Credit Derivatives: An Introduction

MSG Team