People often throw around the phrase, "Don't shoot the messenger." But all too often, management does shoot the messenger. There are many analytical tools available - including Microsoft Excel - that can help with cost estimates. This requires comfort with numbers and calculations. Risk management involves a lot of numbers and analysis. News sites and industry journals should be regular reading material. Now it's one of the greatest threats that companies face. Ten years ago, no one heard of ransomware. Risk management requires constant education and keeping up with the news. Their job is to see the big picture, and they might see something others miss. If a risk manager looks at how things affect the business as a whole, they might come up with a better way to operate. No sports team ever wins by only playing defense - and that applies here, too. This is used in areas outside of a risk manager's core competency. This is the transfer of risk to someone else who is prepared to accept it. This is the most common mitigation strategy, which aims to limit either the likelihood or the effect of the risk. This is for catastrophic risks that are almost certain to happen. This means making every effort to avoid the risk. This is for risks that will only have a small effect or are unlikely to happen. This means accepting the risk and taking no action to mitigate it. There are four main types of mitigation action or strategy, according to the site Skills You Need: This will determine the risk manager's focus. They should have a complete list that notes the most to least likely risk, and the most severe to least severe risk. ![]() Ability to quantify risksĪfter assembling a list of potential risks, risk managers need to be able to rank, on a scale of their choosing, the likelihood and severity of each risk. Business understanding is a must - especially if the risk manager has aspirations for the C-suite. They can't say finance doesn't matter because they are in IT, or vice versa. To identify and estimate risks to a company, risk managers need to understand how the entire business works. Risk managers must invest their time to stay up to date on all changes and understand those updates. If there is one thing the government does well it is regulate. Managers need to know the costs in lost productivity, lost income and financial penalties - the latter of which can be crippling. Financial risk is what will get everyone's attention. ![]() Risk managers need to know the average cost of network outages and security breaches. They should be able to build relationships with other departments and superiors. Risk managers need to be able to build relationships - and not just with their immediate subordinates. This goes hand in hand with the previous skill. Risk management may require upsetting the apple cart, and managers need the respect of their team through challenges. Risk managers need good people and leadership skills to inspire and lead staff. People management and leadership skillsĪll the problem-solving skills in the world are useless if managers can't rouse the troops. So they need to like getting their hands dirty. While some risks may require passing the news on to someone above their pay grade, some will fall to the manager to solve. Risk managers also need to be able to solve problems. They also need to spot holes and weaknesses that others may have missed in the systems, infrastructure and other areas. ![]() Risk managers need analytical skills to collect data and make important decisions using that data.
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