Posted: October 17th, 2013
Procurement and contract management
Importance of planning risks
Planning risks is mandatory in an organization because it ensures that all known risks are identified rigorously and that they are listed in a comprehensible order. Impact and probability are established and ratifications done.
The business organization is only able to flourish when its project managers foresee risks and identify them. Presence of new products in the market bringing competition can be a risk, which, if not realized early enough, might derail the organization’s processes, and therefore create losses.
Once the risks are identified in the management plan, the project managers are able to sort them out or have a back up plan to cushion any type of disaster in the future. This allows the organization to meet its deadlines and reduces time consumption therefore producing quality and precise output.
Mitigation Strategies are established
The organization might have a threat of future setbacks and developing methods that will be best to reduce or eradicate them enables the organization to be at a better position of accomplishing its goals.
Mobility of Business Strategies
Planning risks enables the project managers to asses the organizations approaches. If the approaches happen to be futile, they have time to shift gears and develop other recommendable approaches. This maintains the quality of its products.
Getting Hold of Business Opportunities
The organization acquires competitive advantage because in planning risks, there is also an opening for opportunities. These opportunities enable the organization to expand its ventures and improve its production by maximizing profit potential.
The Advantage of ESI International’s Risk Management Process in Managing Risks
ESI international is a grand organization, training individuals and corporate companies how to manage projects by assessing risks and acquire good business sills. In the real world, businesses are able to examine and retort to risks when outsourcing, apply the methods they have learnt in the training to their established companies during procurement and sourcing and create a common structure between purchaser and supplier to deal with the risks. As a result, organizations reap maximum profits while dealing with risks in sourcing labor, technical and cost-saving solutions. It is responsible for most successful corporate companies.
ESI International, Inc. (2008). ESI International project management series. Boca Raton, Fla. [u.a.]: Auerbach Publ.
Culp, C. L. (2001). The risk management process: Business strategy and tactics. New York: J. Wiley.
Place an order in 3 easy steps. Takes less than 5 mins.