Strategic Risk Management

Management teams and boards must challenge themselves and their organizations to move up the strategic risk management learning curve. Developing strategic risk management processes and capabilities can provide a strong foundation for improving risk management and governance. Boards may want to consider engaging independent advisors to advise and educate themselves on these matters. Failure or success of any CRM project is not mainly determined by the technology used but the human component, which entails all the stakeholders involved in the project. Project success is often based upon whether an implementation was delivered on time, a project should only been seen as a success if it meets the objectives of the business and the needs of the users. A project delivered a few weeks late that delights users will be a far greater success than a project delivered on time that isn’t used. Stakeholders can be prioritized based on their, importance, contribution made and the impact of their contribution. The project stakeholders should include, company shareholders, company managers, a project manager, a project development team, company employees and the customers. The most important stakeholders are the customers, project managers, company owners, development team and the company employees respectively. Customers, project managers and company owners are the high power, high interested people; the project manager invested the greatest effort to engage and satisfy these individuals. All the stakeholders are consulted during the outset, development and implementation of the project. The head of the project should be the project manager whose major goal was to manage the stakeholder expectations and to ensure that the internal and the external project development team were working in unison towards achieving the same goal. The project manager should further ensure that there existed an understating between the business users and the project team to increase the usability of the system. The project manager will also responsible for risk management to prevent project failure. The end goal of the strategic risk management process is the strategic risk management plan, which is the document that communicates the risk management process with responses, etc., to all project members. Like all planning exercise, it is the act of going through the process with the learning and new knowledge developed that is of most importance rather than the actual document plan itself. Nevertheless, documenting the plan is helpful for purposes of development and communication. Finally the project manager needs to control the delivery deadlines, scheduling and delegating roles to ensure that it was not only delivered on time but also that it met the user requirements. The project implementation lifecycle entails an agile structure. The project will avoid the traditional Lifecycle structures because it will grow into a large project that would be very difficult to complete accordingly. The methodology enables the development team to manage complexity and handle unpredictability accordingly because the project was developed in short but incremental iterations which involved testing and feedback delivery before the other iterations were completed. Agile should chosen because it provides opportunities to assess the direction of a project throughout the development lifecycle. This is achieved through regular cadences of work, known as sprints or iterations, at the end of which teams must present a potentially shippable product increment. The project-scoping document forms the backbone of the development cycle because it consists, the system, user and functional requirements. Once the strategic risks are identified, senior management and the directors will be quick to ask about plans to mitigate or monitor them, so its suggested that companies develop and implement initial action plans as a core part of the assessment and not later as a separate initiative. Again, the specific actions to be taken will depend on the maturity of the organization’s risk management practices.

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