The basics of risk management

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The basics of risk management

I want to congratulate David Hillson (a.k.a. the Risk Doctor) for his video explaining his view of risk management basics.

In Risk management basics: What exactly is it?, he takes less than five minutes to sum up risk management with six questions:

  1. What am I trying to achieve?
  2. What might affect me? Are there things out there in the future that might help or hinder me?
  3. Which of those things that might affect me are the most important?
  4. What should I do about it?
  5. Did it work?
  6. What changed?

He says that “managing risk is one of the most natural things we can do and one of the most important”. I have to agree, although I don’t think we do it as well as we should.

I like his six questions.

David has written 11 books on risk management, which is more than me, and I have to admit that I have not read them. While I suspect that we will not agree on every topic, such as the value of risk appetite statements, his six basic questions are similar to my set.

This is what I have included in the book I am writing now, on making business sense of technology risk.

I like to explain risk management as something every effective manager does:

  • They understand where they are today and where they need to go (their objectives).
  • They…

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