PMGT5871 Managing Risk Overview of Risk Management The objective of risk

Pmgt5871 managing risk overview of risk management

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PMGT5871
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Managing Risk Overview of Risk Management The objective of risk management is to maximise the opportunities for gains while minimising the impact of risks It is integral to good management practice and essential for governance It is an iterative process, consisting of a sequence of steps, which enables continuous improvement in decision-making and facilitates continuous improvement in performance Apart from the application of a systematic method, effective risk management also requires that appropriate culture exists within the organisation The following standards and publications provide guidance for effective management of risk: § PMBoK § ISO 31000:2009 Risk Management Standard (superseded AS/NZS 4360:2004) § UK Office of Government Commerce (OGC) Management of Risk (MOR)
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Managing Risk Managing Risk and culture: Deal and Kennedy Model Work hard-play hard culture: Rapid feedback, long vision, low risk E.g. Most software firms Tough guy - macho culture: Rapid feedback, short vision, high risk E.g. Military, police Process culture: Slow feedback, long vision, low risk E.g. The University, government institutions Bet-the-company culture: Slow feedback, long vision, high risk E.g. Airlines, oil companies Source: Wikipedia
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