Archive for June 29, 2016

Communication Risks

Management often ignores the impact to not managing communication risks. As we have been discussing, their goal is often to eliminate all communication risks, instead of assessing it and taking the appropriate steps to mitigate it.

Here are some examples of communication risks that should be managed and mitigated:
• Misunderstanding or lack of communication of expectations of Staff
• Managing the thin line between not enough communication and too much – the expectation needs to be one where the communication enhances (not hinders) results
• Assessing who and when communication should be shared – ensure any impacted individuals (both internally and externally) are appropriately updated with needed information

The risks around communication should consider: when; where; why; who; and how; in order to mitigate any issues that may arise due to unclear, incomplete, or lack of information. It will not necessarily eliminate communication risks, but it will provide a solid structure to mitigate them.

Aldridge Kerr can assist you in mitigating communication risks. Contact Charlene Aldridge at 972.447.9787 or CharleneAldridge@aldridgekerr.com to discuss how we can assist you in improving how you do what you do.

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Scope Management and Risk

Discussions on mitigating risk continue as we explore the myth that risks should always be eliminated. Instead, risks should be evaluated and mitigation steps

taken.

For projects, managing its scope should be assessed from a risk perspective. The following examples should be considered:
• The risks that can arise if the scope is not well-defined
• Not managing scope once defined
• Unclear dependencies
• Tasks within the project are not considered and included within the scope definition
• Unclear definition of costs tied to a project’s scope

By clearly defining the scope of a project and then managing against that scope, risks can better be mitigated. Although, risks may or may not be completely eliminated, clearly defining and managing a project’s scope will reduce (mitigate) the related risks to the project.

Need help more clearly defining a project’s scope and managing the risk surrounding it? Contact Charlene Aldridge at 972.447.9787 or CharleneAldridge@aldridgekerr.com to discuss how we can assist you.

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The Cost of Risk Management

In our most recent newsletter, our focus was on the myth that risk must always be eliminated. A factor in managing risk is considering the cost to mitigate it.

One of two errors that often occur is on opposing sides:
#1. Ignoring the risk and taking no measures to address it
         Versus
#2. Placing too much importance on a risk and utilizing extraordinary resources (often both Staff and financial) when the risk is not that great

As Business Leaders, the mitigation cost must be weighed against the impact of the risk. For example, if it will cost $100,000 to mitigate a risk that, if it occurred, would cost much less, then less stringent measures to mitigate that specific risk should be considered.

However, keep in mind that cost should not always be the only factor to consider when mitigating risk. Other exposures must be considered as well. Two of those will be discussed in our next two blogs.

Contact Charlene Aldridge at 972.447.9787 or CharleneAldridge@aldridgekerr.com to discuss how we can assist you in improving how you do what you do.

And, be sure to sign up for our newsletter