In today’s world RISK can come from many directions. In controlling risk, management should understand the nature of the structure of its business and the keys to successful execution. Business and projects are similar and comprise of four primary components: strategy, people, processes, and customers. Controlling these areas of your business or project can result in significant success.
STRATEGY – Whenever a project or business starts its formation, understanding the strategy and how to achieve the objectives is key. Preparing the strategy is fundamental. Components of your strategy include the vision, mission and objectives, evaluating the internal and external factors that affect the operation, understanding the driving issues and variables will lead to success, and then mapping out the goals to which they operation will strive to achieve.
PEOPLE – The people are the engine of your execution. It is recommended that you prepare an organizational execution plan which defines the roles and responsibilities, processes and approval procedures for execution. It should also include the schedule budget and approved process for continued monitoring of progress. Be sure to communicate your execution plan and secure feedback and commitment.
PROCESSES – Once you have a strategy and team organized it is important next to have processes. These processes will outline the requirements of the team in both collecting, organizing, completing and presenting the end results to the customer. It is important to assure that the team has a clear understanding of these processes and how they fit the strategy, objectives, structure, and client wants and needs.
CUSTOMERS – Without customers you do not have business. We need to understand their wants and needs as well as their processes that they must follow in achieving their objectives. Assuring that you have alignment with a customer’s needs, your strategy, your organization and your processes will help you advance to a successful conclusion or continuation of your project or business.
These are the four top areas of risk management and are fundamental to achieving success. Over the next few weeks we will be adding more commentaries related to these subsets of risk management.