Why is risk management important?

Risk management is the process of identifying, assessing, and monitoring threats that could lead to project failure. Risks are based on a variety of factors such as financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.

The importance of risk management

Risks organizations face have been growing and have become more complex. New risks are constantly emerging that are related to and caused by the use of digital technology.

A recent external risk has arisen that caused supply chain issues at many companies due to the coronavirus pandemic.

According to McKinsey’s findings, surprisingly boards spend only 9% of their time on risk which is slightly less than they did in 2015. Furthermore, only 6% of survey respondents believe that they manage risks effectively. Even a core risk area like cybersecurity with increasing importance is addressed by only 36% of boards.

Our digital automation through Strategy Implementation in our Microsoft based platform called SIP® helps you reducing your delivery risk. Also, executives can measure implementation of their strategy and business benefits, and make investment-based portfolio, program, and project decisions on precise real time data.

Do you want to learn more about how to manage risks effectively?

Then reach out to us on enquiries@pmlogic.com.au or check on our Leaders Lab recordings regularly as we are having discussions with leaders from various industries who share their experience and knowledge, or follow us on LinkedIn to not miss out on our Leaders Lab recordings.