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." Risk is inherent with any project or operation, and managers should assess risks continually and develop plans to address them. That is what our agenda is, to reduce the risk included in this process and take steps to develop a framework that will positively implement measures to reduce or and even remove the risks for our venture. Our risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans will be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Risk Reduction Measures & Responsibilities:
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General oversight of Risk Management in the Organization is to be monitored through records called “Risk Registers” Ensure that Risk Registers are updated annually Accept responsibility for risk identification and accountability for those that have not been adequately identified or assessed Prepare, review and update a Risk Register in his/her area of responsibility Continuously review risks and controls of his/her operations with a view to ensuring risks are effectively mitigated Facilitate the preparation, update, sign-off and approval of Risk Registers Conduct appropriate training seminars, as necessary Monitor compliance with this Risk Management Policy and Procedures
Prevention Strategies & Tools: The most common tool used in risk management is insurance. Besides the standard health, life, and possibly disability insurance, we need to look at the types of liability and property insurance our may need. Specialized insurance for particular risks in ours business can also be necessary. For instance, if we have a chemical component in our assembly process, we may want fire hazard risk insurance. Thinking comprehensively, then we will prepare it down to fit the level of risk that we are comfortable with, i.e the minimum amount. Many people prefer a comprehensive policy that has a large deductible which reduces the cost of the policy, so do we.
or other financial trouble spots in the business. what do they do. Specialized insurance for particular risks that are inherent to our particular field of endeavor is also available for . It may take some time for the policy to be written if valuations need to completed or other information checked. Rather. security services. so it is difficult to generalize. We still need to deal with those risks we did not insure against. Should we need additional financing at some point. a good risk management system should provide the information you need to know exactly when we need to seek additional financing and give us as very clear picture of what our needs will be. but are specialized areas for consideration. We will be certain to arrange for the insurance coverage to start before you open for business. This seems like common sense. what action should they take. Look carefully at the pluses and minuses of each policy. Involve your employees as much as possible. OSHA standards. with a written plan.and don't choose the cheapest one. fraud. the agent. what are we going to do if this event happens. having a good risk management system in place will impress the lender and may make the difference in obtaining the funds your need. A search for risk management on the internet turns up a very diverse set of links. get a number of quotes . Our insurance and our contingency plans are your risk management system. financial safeguards. thefts. Likewise the components of the startup should also not be static. if a robber comes in and demands the cash in the cash register. backup systems and government regulations . Part of the difficulty is that each business will have different types of risks. Additionally. can spot the flaws that can be tomorrow's disaster. It can be an information system about how our business is doing as well as a system to control risk. and the insurance company before making a decision. No startup is a static venture. We will be putting the plan in a place that it will be easily accessible to the employees and have an extra copy in a safe location. Some topics that surface are insurance.e. however. it will take time. Insurance covers the ones that are most common. We will not just put them in a safe place. Like.. If the computer shuts down and won't reboot. we will make it an annual commitment to review the system and update it as necessary. They. we will want a good accounting and financial control information system to alert you to problems that might be arising in cash flow. We also do not expect to decide and have a policy in place the next day. environmental issues.all of which are valid risk control systems. none really addressing comprehensively the risks a business should consider.As with any purchase. No two policies are identical. Then we will train every employee what to do in the event something unexpected happens. Each will have a contingency plan i. In fact. but in the rush to get money coming in the door it is often put off. more than anyone.
planning for the worst case will help us through many a bad moment. One business backed up its data from its computer on a date storage device and stored the device in a nearby vault. they just were not ready for a flood disaster. Sloppily thought out risk management plans are almost as bad as none because they can be time consuming with no long term benefit. In the same way we need to prepare for the risks of illness. A good risk management system not only has adequate insurance coverage to compensate us for our losses which might occur. and even disasters. disability. The computer operator only had enough warning to flip off the electricity. However. The company had a contingency plan for a corrupted database. losses. injuries. damages. The computer was a loss and it took months to recover the data lost. When the toilet water main broke during working hours and water rushed into the whole floor of the building. . the vault filled with filthy water just like every place else. but it also includes a plan to prevent losses. Contingency planning for other potential hazards is just as important as insuring against losses. insurance is only part of the package we as a business must consider. The vault was closed and sealed when they left for the night. and to manage unexpected events as they occur. if possible. While there is always something that unanticipated that can happen. We will be prepared for marketplace risk through our business plan.some businesses.