10 Rules for Reducing Risk BY PRESSLEY PERKINS

10 Rules for Reducing Risk BY: PRESSLEY PERKINS

RULE 1 -Identify risk early on in your business Brainstorm all the risks possible. Brainstorm all missed opportunities. Make clear who is responsible. This is important because you want to identify the risk before it gets even worse in the next years. This would protect the business owners from loss.

RULE 2 -Communicate about risks: Communicate your risks with your business partners or whoever else is involved with your business. Make sure that your boss or manager knows about these risks so they are not surprised. Make sure your manager puts effort mostly in the top risks. This is important because it lets other know what is going on so that nobody important is left out and can try and help. Protects others from being shocked or getting upset.

RULE 3 -Consider opportunities as well as threats Risks may come off to be negative most of the time but there are possible positive risk that can benefit your business. To do so you need to create time to get these beneficial risks. This is going help you get opportunities with high-pay off which mean that you will need less investment in time and less resources. This will promote your business and make it more profitable.

RULE 4 - Prioritize the risks Spend time on the risks that can cause bigger issues , bigger losses, and less gains. I advice you to create a plan or tool to categorize your risks. The more risk you identify the more time you put into it. This can help you realize that you need to get all your risks out of the way but inform you to spend more time of the bigger risks. This can protect you from falling behind.

RULE 5 -Fully understand the reason and impact of the risks. Before focusing on fully solving the risk, you have to focus on identifying what caused your risks. Ask yourself the question “what caused this risk? “ “How will this impact our business? ”. Find responses. This helps you know what you did wrong and so you can make sure it does not happen again. This protects your business from making the same mistake again.

RULE 6 - Develop responses to the risks Complete a response to all your risks. This adds value to your business. This is important because it makes sure that you are safer in your business and prepares you for what people say about your business. This protects your business against threats and negative comments or effects.

RULE 7 -Develop the preventative measure tasks for each risk. This when you talk about to prevent a risk from occurring. This is reducing the likelihood for a risk to happen. Turn your ideas into tasks. This is important because it helps you reduce risk likelihood. This protects you from appearing risks in your business.

RULE 8 -Develop the contingency plan for each risk You should have a plan ready to put into action. This is important because if a risk occurs you are prepared for a risk if it occurs. You have a plan already in store. Therefore, you don’t need to put any extra time in to think. This protects you from a risk growing in your business. You can put it to a stop quickly.

RULE 9 -Record and register project risks Making a record of all the risks that have occurred in your business is smart because you will not forgot what mistake you made and what you did to prevent it. This also can help your fellow partners remember and help them to know what is going on. This is important because you know that you will have a source to look back to if anything happens again. This protects you from harm or risks also with the addition of having good effective responses to your risks in your track record.

RULE 10 -Track risks and their associated tasks. Your business manager has a day-to-day job which is making note to your risks everyday. That is a simple solution. Carry out a risk to analyze it or select your responses. This is important because your everyday effort of integrating risk tasks keeps your project focused on the current situation of risks. This protects you from getting on the wrong track, falling behind and helps your business stay on top of the main importance.

CITATIONS "10 Easy Rules to Reduce Risks on Projects. " Business Improvement Architects. N. p. , n. d. Web. 14 Mar. 2016 "How to Reduce Business Risks. " How to Reduce Business Risks. N. p. , n. d. Web. 14 Mar. 2016.