Effective Risk Management in Turbulent Times

Abstract

Managing risks associated with capital programs in today's complex delivery, regulatory and political environments requires a structured approach to identify, assess, and manage the uncertainties that can affect a program's goals and objectives. Programs that have a formal risk management process experience fewer surprises and minimize threats while maximizing opportunities to achieve their objectives. Risk management fosters more realistic initial planning and flexibility to change as the program evolves. It provides more control over the delivery process, providing the ability and time to plan for and mitigate risks. Where risk remains, an appropriate level of risk contingency can be allocated and the people best able to manage residual risk identified. This paper will discuss how different agencies are successfully using various methods to identify and establish risks, determine consequences, and prioritize mitigation measures.