Failure or Success: Why It’s Important to Work with Risks

rabiarahi

A manager can come up with a perfect plan, but something will still go wrong: a contractor will fail to deliver, colleagues from another department will miss a deadline, or the Internet will stop working during an online meeting with important clients. A risk is an event with an uncertain outcome that can either harm the organization or become a new opportunity.

Let's give an example of a negative risk
Risk: Samovar has entered into an agreement with a social media marketing service logistics organization for the first time, so there is a risk that the customer’s order will be delivered late.

Problem: The shipping company delivers the goods later than the appointed date, the chain of stores imposes fines and refuses to cooperate.

Solution: find in advance the contacts of other logistics companies that can quickly deliver the order.

Why Risk Management Is Important
Reduce financial damage. In our example, it would be cheaper for the Samovar company to order express delivery than to pay a fine and lose a client.
Do not delay the deadlines for completing work. For example, an organization wants to launch a new service before the New Year holidays. The project manager sees that there are already a lot of orders and the development team is heavily overloaded. Therefore, he decides to temporarily hire project workers and delegate some of the tasks to them.
Reduce stress levels in the team. Specialists worry less when there are clear instructions for all occasions.
Conventionally, risks are divided into internal ones, which depend on the organization itself, the team, the established processes or tools. And external ones, which do not depend on the company - weather conditions, emergencies, changes in legislation.