Your Guide to Project Management Best Practices

Top 5 Responsibilities of a Risk Management Team (Part II)

risk mngmnt team dutiesIn Part I, three basic responsibilities of a risk management team have been listed and described. In Part II, the rest two responsibilities will be outlined.

So the responsibilities of the risk management workgroup cover the implementation of the five-step strategic risk management process. These process includes the final two steps:

  1. Implement Risk Management Plan.
    It is the major duty of the team to formally adopt and implement a risk management plan template. The plan’s implementation starts with the risk management group distributing and explaining items of the plan to everyone affected by it.Although each member of the workgroup has an opportunity to discuss the plan’s implementation and comment on its content (so appropriate advice and support can be provided), some special risk management training may be required.The members who have appropriate risk management education and competencies can guide those who have questions.Also certain employees and volunteers may be involved in risk management training activities in order to allow the team members meeting specific risk treatment and control responsibilities.
  2. Review and Revise Risk Management Plan.
    During the implementation of the plan the risk manager in collaboration with risk analysts review the project activities, reviews status and progress of the identified risks, re-estimates existing threats and register new ones, in order to make the plan fitting new conditions of the job management system.For example, new risks can be initiated by such reasons as new client’s needs, funding constraints, and service delivery challenges. The dynamic of the risk management information system is determined by the dynamic of new risks’ occurrence.The risk manager should review existing risk management strategies regularly.The risk management team should evaluate an existing risk management plan example to ensure its continued appropriateness, comprehensiveness, and effectiveness (read more at Project Management Guidelines)

The Committee

In some projects and especially in business processes and activities, the risk management workgroup is identified as a risk management committee which has rather similar or the same duties and responsibilities. Such a committee may head the team and take strategic risk management decisions.

The committee may have a more complicated organizational structure, be larger and include several additional (often secondary) positions. In addition to the team’s duties and responsibilities, the risk management committee takes responsibility for implementing the overall risk management methodology regarding all the functions and activities within the performing business company, including Investing, Marketing, Sales and Operations.

Due to the wider responsibility, the committee needs to employ experienced investment professionals, marketing analysts, sales specialists and operations officers who will assist the risk manager and the committee chair in implementing risk identification tools and risk assessment methods. All the responsibilities of the committee as well as roles and duties of its members will need to be identified and approved in the existing system.

Back to Part I of this articles.

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