Risk exists in every endeavor, business and societal environment, community and business organization. Key to efficient functioning of any body, organization or entity, is the identification, analysis, assessment, prioritization, mitigation and management of these risks, even when the outcome is to “do nothing” for the risk identified. This is especially important during the design and implementation of change initiatives, when seeking to effect improvements to the status quo and the necessary injection of chaos.
A risk is an event or set of events, which if it or they occur, will have a beneficial or negative impact on the ability to achieve one or more of the change objectives.
Risk is one of the Knowledge Areas which permeate and interweave each of the change environments, ensuring optimal integration between them. Effective Risk Analysis, Application and Management underpins increased success in achieving the change desired. Clear and detailed exposition of the Risk areas help all change team personnel and relevant stakeholders to discharge their risk responsibilities in an effective manner.
Risk is mandatory and not optional. It affects all areas of the operation and any change to it has to fully planned, communicated, executed well and any potential impacts to it have to be analysed and managed. Risks are by their very nature, uncertain and may happen or may not. Any change initiative has to identify the risks, analyse them to enable them to be mitigated to a level acceptable to the change initiative, then manage them so they don’t disrupt the change progression.