Benefits of risk management
|Benefits of risk management|
Benefits in project management
The main benefits of risk management in project management are:
- improved planning,
- more effective use or resources,
- reduced costs of legal actions and prevention,
- higher reliability,
- quick response to opportunities,
- higher confidence of stakeholders,
- better quality of communication.
Benefits in quality management
- better understanding of results of quality actions,
- extended understanding of internal and external factors influencing enterprise,
- extended planning leads to better results,
- enhanced responsibility for improvement actions,
- removal of dead preventive actions mechanism,
- achieving continuous improvement in areas that are important for the company.
Benefits in information security
The risk management is essential part of information security management system. The key benefits are:
- increase in trust which leads to better sales,
- lower chance of information security incidents,
- better business decisions due to extended view and confidence,
- saving money due to more efficient controls and effective architecture or information system
- increased business continuity,
- ability to provide products and services during unforeseen circumstances and emergencies,
- improving communication and whole information system,
- confidence and better sleep.
Benefits in finance
Risk management in finance is understood somewhat differently than in other areas, however the methods used are similar. The main benefits are:
- access to better offers of banks,
- lower interest rates,
- lower insurance costs,
- limit and protection of liability in case of a lawsuit,
- protecting resources,
- reducing costs of risk events,
- production contingency planning - increased flexibility,
- change in business culture,
- better understanding of results of decisions by managers,
- more time to prepare for anticipated events.
- Wawak S., Planning in ISO 9001:2015
- Raz, T., & Michael, E. (2001). Use and benefits of tools for project risk management. International journal of project management, 19(1), 9-17.
- Akintoye, A. S., & MacLeod, M. J. (1997). Risk analysis and management in construction. International journal of project management, 15(1), 31-38.
Author: Slawomir Wawak