As companies and projects grow and evolve, the importance of a strong management team becomes increasingly apparent. The management team is responsible for overseeing the daily operations of the business, as well as setting long-term goals and strategies. Highly successful management teams also ensure that they manage risk. In this article, we discuss the frequency and approach to management team risk reviews.

What is a Risk Review?

A risk review is a process that involves identifying and evaluating business or project risk. The goal of a risk review is to identify potential problems before they become major issues and develop strategies to mitigate or eliminate them. It involves reviewing the current plans, operations, and activities, identifying potential risks, assessing the likelihood and consequence of those risks, and mitigating them when necessary. Another key aspect of the risk review is looking at the current risk register and ensuring mitigation plans for previously identified risks are being actioned.

Frequency of Management Team Risk Reviews

Management team risk review frequency will depend on several factors, including the size and complexity of the business/project, the industry in which it operates, and the level of risk involved. In general, management team risk reviews should be conducted at least monthly. Larger businesses and projects may have more frequent risk reviews, for example, when there have been significant changes to a company’s business or market conditions or when an industrial megaproject enters the procurement phase.

Approach to Management Team Risk Reviews

The approach to management team risk reviews will depend on the specific needs of the business/project, but all reviews should include senior management when critical risks are present. Key steps that should be followed in any risk review process include:

Identification of New Risks

The first step in any risk review process is to identify potential risks to the business. This can be done through a variety of methods, including brainstorming sessions, surveys, and interviews with key stakeholders. It is important to identify risks that are specific to the business, as well as risks that are common to the industry.

Assess Likelihood and Consequence of New Risks

Once potential risks have been identified, it is important to assess the likelihood and consequence of those risks. Working with the likelihood and consequence tables, assign a rating to each identified risk. Then enter the likelihood and consequence ratings into the risk matrix to determine the risk’s criticality, or priority. Criticality can vary from ‘Critical’ to ‘Low’, where critical risks require immediate senior management notification and low risks may be accepted as-is.

Develop Strategies to Mitigate or Eliminate the Risks

Once potential risks have been identified and assessed, it is important to develop strategies and mitigate or eliminate unacceptable risks. This may involve implementing new policies and procedures, investing in new technologies or equipment, or hiring additional staff. The strategies should be realistic, tailored for each risk, utilize available resources, and have due dates for each step assigned.

Monitor and Review

Finally, it is important to monitor and review the effectiveness of implemented strategies. This can be done through regular monitoring and reporting, as well as through periodic risk reviews. It is important to be flexible and adjust the strategies as necessary to ensure that they remain effective.  All changes should be noted in the risk register.

Risk Management For Smaller Companies and Projects

Team Management Skills

Effective team management skills are essential for business or project risk management success. A well-managed team is always more productive, efficient, innovative, and risk-aware than a poorly managed one. Here are some key skills that are essential for effective team management:

Communication

Effective communication is essential for team management. It is important to establish clear lines of communication between team members and to provide regular feedback and support. This helps to build trust and promote collaboration.

Collaboration

Collaboration is key to successful team management. It is important to encourage collaboration and teamwork and to establish a culture of trust and mutual respect. This helps to promote innovation and creativity.

Time Management

Effective time management skills are essential for team management. It is important to establish clear priorities, deadlines, and goals, and to provide the necessary resources and support to meet those objectives – all important elements when managing risk.

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