Search
Related Links

 

 

Informative Articles

Basics in Time Management Questions
We all have to find what works best for our individuality, since each and every one of us is different. Accepting our own actions, behaviors and thoughts is not the beginning of learning who we really are. Rather, it is an attribute, which...
Beyond Management Coaching: When Things Are Getting Out of Control
Leaders and Managers often ask us, ‘What do you do when you have tried to coach and counsel an employee about a performance concern, and the employee has not responded? Unfortunately, we see far too many cases where the leader hasn’t, in good...
Money Management
There are a number of ways that people can use to manage money to stay out of debt and even establish savings over time. Establish a Budget The first, and maybe the most important step, is to set a budget for yourself and stick by it. Take a look...
Reap Lifestyle Rewards from Improved Time Management
Increase your motivation to improve your time management. Provide yourself with more time for family, fun and recreation. Transposing your success of managing your business activities over to your non-business life can reap surprising rewards. ...
Time Management - Working Smarter at Work
Let's look at your time management skills. Most of us have to work, and the more you can do in the least amount of time, the better. Working smarter frees you up so that not only do you have a job, but you have a life too! Getting Back To...
 
Effective Risk Management

Risk is embedded in every opportunity a business faces. And poor risk management can result in large financial costs, or even failure. Risk points can emerge anywhere: small scale project delays, the misguided actions of an employee, or a fire in an inventory warehouse.

This article will help any small business owner or manager better understand what risks are out there, and more importantly, how to better control them.

First, I’ll explain why a systematic analysis of risks is important and illustrate a simple risk management architecture. Then, I’ll talk about how I helped companies better identify and manage a variety of risks.

What is Risk Management?
Simply, risks are threats to your business or project. They are situations or events that can affect the outcome of your decisions and actions. Therefore, risk management is the identification, evaluation, and mitigation of risks to a business or project.

Why is Risk Management Important?
All businesses exist for one clear reason: To make a profit. Poorly managed risks have tangible and dramatic effects on the bottom line. Therefore, sound risk management is important to ensure that your business can overcome any problems and continue to grow profitably.

Threats to a small business or project can come from a variety of sources. In 2002, The Risk Management Standard categorized risks into four areas: Financial, Operational, Strategic, and Hazard. Strategic risks can emerge from competitors, customers, or markets of a company. For example, the technological features of a companies’ product may become obsolete. Operational risks can affect how the company operates internally. Systems such as IT, material procurement, and accounting responsibilities can be compromised by employees. Financial risks can hinge on financial market performance, such as foreign exchange fluctuations. The last type- Hazard risk- can be the most damaging. Events like natural disasters, manmade disasters, and crime can permanently disable a company.

How to Build an Effective Risk Management Strategy
An effective risk management strategy must be systematic and robust. It also must be straight-forward, and simple to implement.

An effective risk management strategy will have three stages:
•Identify
•Evaluate
•Mitigate
During the Identify stage, owners and/or senior managers need to thoroughly examine the business from many different perspectives. All risks facing all areas of a company need to be identified. This should be done with as many people involved as realistically possible to give a complete picture.

During the Evaluate stage, each risk is given a probability of occurrence and a severity of occurrence ranking (This can be done with a simple 1 to 5 scale; 1 being “rarely occurring” and “minimal damage”). This allows senior management to more clearly understand the extent of potential damage.

During the Mitigate stage, the resulting risks are controlled through a variety of methods. For example, traditional insurance is one way to remove hazard risk. Financial risks can be managed through capital market hedging transactions.


Operational risks are minimized by clear check and balance procedures and management oversight within the company. Strategic risks can be minimized by better documentation, such as protecting intellectual property rights.

How I Have Managed Risk
My experiences have given me a clear appreciation for the importance of systematic and robust risk management. What I talk about next is how I identified, evaluated, and mitigated various risks at three different companies in three different industries.

While I managed a Midwestern real estate portfolio for Cohen-Esrey, risk emerged in several areas. The easiest risks to identify and mitigate were the hazard points, such as fire and water damage for an apartment building. More complex issues, such as “Slips and Falls” on icy steps required us to put traditional insurance in place with a covenant that said employees would also work to minimize any liability by removing snow in a timely fashion. Other problems and solutions were less clear cut. At one point we had issues with employees “walking off” with tools from the property workshops. To mitigate this problem, we restructured our recruitment and selection process. Vendor relationships also became a liability issue. Only clear communication on a timely basis minimized such vulnerability.

Although most small businesses won’t encounter the risks I mitigated at HSBC brokering financial derivatives, the experience built my appreciation for risk. Our team worked on behalf of many global banks hedging financial market risk. Although the market place conventions and contracts were similar, each transaction was done for a different reason. We analyzed the interest rate environment, advised traders as to how to better hedge their risk, and then brokered very large transactions. These experiences instilled in me the importance of understanding and transferring risk.

Managing a Customer Relationship Project for Reuters is where my risk management became a formalized business process. My job was to coordinate and implement a CRM initiative that stretched over 10 months and included staff on several continents. To better understand what issues would affect the timetable and budget, the team put together a Risk Matrix. This illustrated three key issues: what each risk point was, its’ potential occurrence and severity, and who was responsible for mitigating it. At every meeting the team would review the Risk Matrix and identify any future risk points. As with most projects, communication is key, and this encouraged a high degree of communication and accountability.

Risk is embedded in every opportunity a business faces, and poor risk management can have profound effects on the outcome of any business endeavor.

Putting an effective risk management system in place is the first step for a small business owner, who can then confidently exploit new business opportunities.

About the Author

Adam C. Park is a business development consultant based in Chicago, USA. He has written articles concerning Effective Team Management, Deeper Cultural Understanding, and Improving Customer Loyalty. He can be reached at acpark@comcast.net.

 

About Management - business management - people management - and more
THE starting place for exploring MANAGEMENT; helping new managers get started and experienced managers get better.
management.about.com
 
Management - Wikipedia, the free encyclopedia
The phrase "management is what managers do" occurs widely, suggesting the difficulty of ... The management of a large organisation may have three levels: ...
en.wikipedia.org
 
Free Management Library
Quality Management · Research Methods · Risk Management · Sales · Social Entrepreneurship · Staffing · Starting an Organization · Strategic Planning ...
www.managementhelp.org
 
Welcome to the American Management Association
Helping business professionals learn practical management skills and the best practices of world class organization.
www.amanet.org
 
Project Management Institute (PMI) - The largest project ...
The organization of choice for project management professionalism. PMI establishes Project Management standards, provides seminars, educational programs and ...
www.pmi.org
 
IT Project Management and IT Service Management Ideas and Analysis ...
Datamation provides ideas and analysis for IT managers, featuring case studies and trend spotting reports on IT project and service management issues.
itmanagement.earthweb.com
 
Management
International review on management research. Peer-reviewed, occasional. Ejournal, with tables of content, abstracts and full articles available on-line.
www.dmsp.dauphine.fr
 
Society for Human Resource Management
Advances the human resource profession to ensure that HR is recognized as an essential partner in developing and executing organizational strategy.
www.shrm.org
 
FEMA | Federal Emergency Management Agency
Agency of the US government tasked with Disaster Mitigation, Preparedness, Response & Recovery planning.
www.fema.gov
 
FT.com / Business Life
Account Manager. Recruiter: Financial Times. Part Qualified Management Accountant. Recruiter: Robert Half Finance & Accounting ...
www.ft.com
 
Small Business Management: Advice and Guides
Online guide to small business management. Find articles, advice and how-to guides.
www.entrepreneur.com
 
Academy of Management Online
Academy of Management: This is the official web site of the Academy of Management, with information on membership, journals, list servers, web sites, ...
www.aomonline.org
 
Business Management, Leadership and Decision Making Strategies and ...
Provides business management articles, webcasts, online learning, and books as well as conferences focused on leadership and decision making.
www.bettermanagement.com
 
Object Management Group
Distributed object computing industry standards group founded in 1989. Defined standards include CORBA and IIOP.
www.omg.org
 
Management Reading | Global Executive | Business | Economist.com
The one management thinker every educated person should read Nov 17th 2005 ... The story of Emerson's successful management process is fascinating. ...
www.economist.com
 
Emerald: Home
Publisher of journals in management and library and information services, engineering, applied science and technology.
www.emeraldinsight.com
 
Yale School of Management
The mission of the Yale School of Management is to educate global leaders for business and society. We pride ourselves in providing a hard-edged business ...
mba.yale.edu
 
US Office of Personnel Management
Official Federal Government site listing positions nationwide for special agent, federal police officers and related jobs.
www.usajobs.opm.gov
 
Waste Management
Waste Management is the #1 Residential and Commercial Trash Service Provider.
www.wm.com
 
US Office of Personnel Management
Includes federal jobs listings, upcoming events, numerous humans resources reports, news releases and additional official information.
www.opm.gov
 
 

 
Content Menu
  • 100 successful management the ten winning behaviours

  • 21 questions to assess your readiness for time management

  • 5 tips for better management of home business

  • 5 tips to successful time management

  • 6 steps to effective management during change

  • 6 time management tips for moms

  • 8 tips for successful link blitz management

  • accounts payable a powerful document management and workflow solution

  • action plan in time management

  • advantages of time management

  • algebraic model on management decision redefined productivity

  • an effective management tool

  • are you like millions of americans struggling to manage their debt debt management can help

  • asphalt paving company serving property management corporations

  • asset management 101

  • automated expense and timesheet management

  • a content management tool provides the 5 essentials of communication

  • a customer complaint management system

  • a few paragraphs on how we could have improved team management

  • a guide to performance management

  • a lesson in money management

  • a project management rule collaborate

  • balancing technology management and leadership

  • bankruptcy as a debt management solution why do so many of us have so much debt

  • basel iis three approaches to operational risk management

  • basics in time management questions

  • basic ingredients of small business management

  • basic management skills

  • being self employed brings you a whole new level of stress management

  • belief management the missing ingredient

  • benchmarking and improving management quality

  • beyond management coaching when things are getting out of control

  • bottleneck oriented business management

  • career management in a jobless economy

  • cash flow management

  • change management can lead to rigidity and resistance to change

  • change management getting it right

  • change management needs external focus

  • choosing a debt management program

  • coaching the new word in management

  • cobra solution to be launched at benefits management forum expo

  • collective of concepts to better understand your project management 0727

  • collective of concepts to better understand your project management 0818

  • collective of concepts to better understand your project management 1011

  • college and university professionals for human resources to upgrade their association management software

  • communication managements responsibility

  • connect2inc received iso certification 9001 2005 quality management systems requirements

  • connecting the lease enterprise through lease management software

  • conservative investment management pays for this firm

  • consolidating debt 5 warning signs of a shady debt consolidation or debt management company

  • content management wise investment for business prosperity

  • continuing education meeting management the focus of gomembers inc participation at acme chicago

  • contract management software the solution to the problem of coordination

  • controlling time management

  • corporate identity management

  • corporate travel management

  • creativity and culture management

  • creativity and innovation management in conservative staid organisations

  • creativity and innovation management thought leadership

  • creativity and innovation management turning ideas into action

  • creativity and innovation management why products fail

  • creativity management measurement benchmarking and improvement

  • credit and debt management

  • credit card debt management

  • credit management the way to the top

  • crisis management or managing the crisis

  • crisis management tips

  • crm 101 customer relationship management for beginners

  • crm for beginners customer relationship management basics

  • customer relationship management

  • customer relationship management a brief look at what it is

  • customer relationship management brief history and benefits

  • dealing with change and change management

  • debt management

  • debt management advice

  • debt management and consolidation

  • debt management brings a significant change in debt scenario

  • debt management gives the comfort of a debt free life

  • debt management how a debt consolidator can reduce your debt

  • debt management in the uk

  • debt management more ways to save on gas consumption

  • debt management plans a way to survive the debt and come on top

  • debt management plans how they can help you get out of debt

  • debt management plans suggesting ways to survive the quagmire of debts

  • debt management plans things you must do to avoid pitfalls

  • debt management plans tips for avoiding dmp pitfalls

  • debt management strategies information

  • debt management uk time tested formula for freedom from debts

  • debt management watch out for bank fees

  • debt negotiation vs debt management

  • decision making business management

  • defining supply chain management

  • developing your management style

  • development procedures for building effective management systems phase iii

  • dialresults and datamanagement services merge

  • discovery procedures for building effective management systems

  • document management services

  • does mbwa management by wandering around still work

  • do you make these ten management mistakes

  • effective data management

  • effective management 4 ways to inspire loyalty in your business

  • effective risk management

  • effective talent management

  • effective time and records management means maximized profitability

  • effective time management for busy people

  • effective time management for work at home moms

  • electronic document management

  • employee management using right type of payroll software

  • erm not just for the big guys anymore small business rights management a reality

  • essentials in time management

  • experiences of management coaching part 2

  • extracting real benefits from travel expense management

  • financial management services

  • financial woes consider a debt management company

  • finding a great change management consultant

  • finding the right business management software

  • finding the right expense management solution for your company

  • five days to better inventory management

  • five steps to better employee management

  • five strategies to strengthen your companys financial management

  • fixed ratio money management

  • free debt management services compared

  • from bandwidth management to bandwidth governance

  • get rid of your asset management problems once and for all

  • get your feet wet with time management

  • goals require work and time management

  • got debt consider a debt management company

  • head concierge personal and corporate concierge service assistant and lifestyle management team

  • hiring rental property management

  • home based business tips for time management

  • how much is poor time management costing you

  • how to define a successful time management strategy

  • how to improve your management procedures usability

  • immaterial values in business management

  • implementation procedures for building effective management systems phase iv

  • importance of customer relationship management or contact management

  • index

  • indie artist management economic realities insightful strategies

  • information lifecycle management mastering complexity

  • innovative form of business debt management saves thousands

  • instant time management

  • integrity in management

  • intentional time management solution

  • interim executive management challenge and change

  • interim management provides hope for uk manufacturing sector

  • internet marketing time management

  • internet time management

  • introduction to project management for entrepreneurs

  • inventory management 101

  • issue management methodology for tracking project issues

  • is your management style assisting or hurting your business

  • is your management style lead by intimidation

  • keep your eye on the overall project management promises

  • knowledge management made simple

  • knowledge process management

  • leadership or management

  • learning time management

  • learn how to manage your projects with project management training resources

  • learn to manage your projects with project management training software

  • los angeles countys tough telecom expense management standards met

  • management coaching the heart of performance management

  • management coaching to improve relationships with work associates

  • management coaching vs performance appraisals

  • management decision redefined productivity algebraic model

  • management development micromanagement works

  • management miscommunication

  • management titles in business

  • management wants faster implementation of new organizational strategy part ii

  • management wants faster implementation of new organizational strategy part iii

  • manage your inventory by using inventory management software

  • managing your website development eight easy steps to project management

  • master the art of debt management

  • maximum website promotion through ppc bid management

  • medical group management association purchases gomembers accounting solution

  • meeting your bandwidth requirements for supply chain management applications

  • micro management necessary evil or just plain evil

  • milk another hour or two out of your day time management

  • money management

  • money management guide

  • money management ideas for large cap stock trading

  • offshore outsourcing ideal tool for a successful business management

  • optimizing your cash flow with proper accounts receivable management

  • organizing a time management plan

  • organizing business cards for effective contact management

  • participative management in organizational change

  • paying for business purchases on a charge or credit card can assist in small business management

  • perfecting management

  • performance management is not difficult

  • personalities and time management

  • planning procedures for building effective management systems phase ii

  • policies and procedures used as management key

  • positions in time management

  • ppc management when to give up on a loser

  • presentation pitfalls top 10 content management mistakes

  • productivity redefined associated management decision algebraic model

  • project management 101

  • project management avoid work scope creep

  • project management best practices

  • project management consulting

  • project management success with the top 7 best practices

  • project management training

  • project program management best practices for success in any industry

  • property management

  • property management company hiring one

  • property management the good the bad and the ugly

  • quality management organizational needs

  • real estate property management software

  • reap lifestyle rewards from improved time management

  • rental property management key in costa del sol

  • re discovery procedures for building effective management systems phase v

  • rotator

  • sales activity report for management

  • should you use a private wealth management broker

  • simple mistakes you simply cannot afford in project management

  • simple time management skills generalized

  • six management tips for trying economic times part 1

  • six management tips for trying economic times part 2

  • six sigma training 101 better management basics

  • sloppy time management destroys

  • software risk evaluation and offshore risk management

  • strategic knowledge management the key to sustainable performancel

  • strategic planning steps for optimum business management

  • strategies to time management

  • strengthen skills in time management

  • stress management for the self employed

  • stress management tip take control of your finances

  • successful management 10 simple people skills

  • supply chain management 101

  • sylvester management elects meetingtrak upgrade

  • take action with pms productivity management systeme

  • task management tools the difference between average and successful people

  • team efforts in time management

  • techniques in time management

  • technology advancement changes time management schemes

  • technology advances in time management

  • ten tips to make listening your powerhouse management tool

  • ten top performance management tips

  • the achilles heel of management coaching

  • the benefits of using seminars and small business management courses to build your accounting consulting or tax practice

  • the best debt management programs how to choose

  • the challenges of human resource management

  • the critical path for extreme project management

  • the definition of asset management

  • the difference between typical project management and six sigma project management

  • the dos and donts of cash management

  • the good the bad and the ugly employee and management owned firms

  • the key to high productivity is energy management

  • the management team section of the business plan dont just include resumes

  • the management team section of your business plan

  • the myth of the management team

  • the new customer relationship management crm functions

  • the practice of knowledge management

  • the red phone management consulting in 30 seconds or less

  • the seven deadly sins of management

  • the seven keys to successful offsite meeting management

  • the ultimate time management tips 5 steps to reaching your goals with minimum work

  • three tips to kick start your management career

  • time management

  • time management against time

  • time management and how it affects your kids

  • time management and money

  • time management and success

  • time management and the to do list

  • time management and working to succeed

  • time management avoiding negative

  • time management confrontation

  • time management for college students

  • time management for home business owners

  • time management for your home based business

  • time management how to have productive meetings

  • time management in action

  • time management in control

  • time management is a work of art

  • time management is key

  • time management is your to do list the problem

  • time management makes a good home based business

  • time management no

  • time management positive discipline

  • time management prioritized

  • time management progressed

  • time management provides flexibility

  • time management software

  • time management tips

  • time management tips for managers

  • time management tips for solo entrepreneurs

  • time management tips how to have a filing system that works

  • time management training a necessary investment or a waste of money

  • time management working smarter at work

  • time management working to succeed

  • tips for credit card debt management

  • tips for selecting a debt management service provider

  • top seven reasons why a hosted inventory management solution may be right for your organization

  • top six reasons to buy rather than build an inventory management solution

  • top ten tips about people management

  • top tips for effective time management

  • trading expert discovers ways to beat stock market odds with money management

  • true information management far more than technical automation support

  • two most important time management questions

  • understanding data management and data security

  • understanding document management

  • understanding operations management consulting

  • unsecured business loans apt genesis of intelligent financial management

  • use the net to find information on project management

  • using pms gps the productivity management systeme for goal planning and setting

  • using pms the productivity management systeme to discover what you want in business and in life

  • walking the l i n e of effective management

  • what 80 of businesses dont know tips for improving your working capital management

  • what is a debt management plan and why should i enroll

  • what is debt management

  • what is fleet maintenance management

  • what is knowledge management knowing what we know

  • when is time management not enough

  • why all the fuss about a good management system

  • why asset management is a vital key to your future

  • why asset management is not a get rich quick scheme

  • why just the right ppc campaign management brings in lots and lots of cash

  • why your headline will make you or break you in projectmanagement

  • why you should seek professional help with asset management

  • will call center management software improve your business

  • workflow management software businesses are getting into the flow

  • working at home and time management

  • work at home moms time management tips