Archive for the 'Risk Management' topic

20^th century management used today cannot manage business risk as part of the business because the business is not organized or managed. 20^th century risk management is separate from the business and concentrates on areas of proven risk, but does not cover the normal risk that is present and should be managed in everything the enterprise does.

Risk is inherent in every business and must be managed as part of the business. But, risk can be managed as part of the business only by using Result-performance Management (R-pM) to organize and manage the actual business.

Risk tends to be managed by a risk management process

Most enterprises say they manage risk. Many have risk management functions or processes to prove it. Risk is managed by risk management structures laid over the business.

There are specialists and companies devoted to risk management. Many books have been written on risk management. But, do they point us in the right direction or tell us what we really should be doing to manage day-to-day risks we face in our businesses?

Risk is an inherent part of the business

We all face the risk that things we want done or to happen will not be done or happen as wanted. [more...]

The business is the utilization of capital as business solutions in performance to produce business results. The objective of all human capital utilized as business solutions must be to produce business results. Business results are the specific economic outputs of value. Results can be counted and may be measured in other ways.

Results are managed as separate entities in today’s enterprise

Results include a wide variety of output entities that are separately defined or remain undefined today. The enterprise may have records on material, products, orders, invoices, etc. Each of these separate entities is part of one set: results. The enterprise manages each identified result separately as its own entity.

Many valuable results are produced but are not recorded or managed as something of value that incurs the performance cost of utilizing business solutions.

Defining results as one set enables management of result commonalities

Defining all outputs as results enable the enterprise to manage the common attributes of all results, such as:

• The identifier and description
• The manager responsible to produce the result
• The result customer
• The volume of results planned and produced
• Quality determinates for the result
• The value of the result
• The total performance solution charges against the result
• Result metrics to measure the quality and impact of the result
• Result goals
• Result relationships
• Access to knowledge on producing the result
• Result risk factors and incidents
• Result symptoms encountered

Results are defined down to the level of detail desired by management in order to manage all of the economic outputs produced.< [more...]

What is risk management in today’s corporation?

Most enterprises say they manage risk. Many have risk management functions or processes to prove it. We all face the risk that things we want to be done or have happen won’t be done or happen the way we want them to. What is risk in the enterprise? Is there a risk in poor performance? We should manage risk, but how should we manage risk? What do we have to manage if we want to manage risk?

Risk is prevalent in everything we do

There are specialists and companies devoted to risk management. Many books have been written. [more...]>