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Risk Management

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How Gantt charts help with risk management
Project Management 10 min read

How Gantt charts help with risk management

Here’s how to use Gantt charts to manage risks for smoother project execution.

5 Steps to Creating the Ultimate Risk Mitigation and Response Strategy
Project Management 10 min read

5 Steps to Creating the Ultimate Risk Mitigation and Response Strategy

Risk mitigation is when you identify potential threats to your projects and develop a plan to address them. Here are five steps for mitigating risks.

Project Plan Guide: 6 Steps to Foolproof Project Planning
Project Management 10 min read

Project Plan Guide: 6 Steps to Foolproof Project Planning

Follow these six steps on how to create a project plan and lead your team with confidence through every stage of the process.

Why Risk Management Software is Essential in Today's IT Industry
Project Management 7 min read

Why Risk Management Software is Essential in Today's IT Industry

The importance of risk management cannot be overstated. With increasing reliance on technology and the ever-growing threats of data breaches, cyber attacks, and system failures, organizations must be proactive in identifying, assessing, and mitigating risks. This is where risk management software comes into play. This article will delve into the concept of risk management in IT, the evolution of risk management software, the importance of its implementation in the IT industry, and the key features that make risk management software effective.  Understanding the Concept of Risk Management in IT Risk management can be understood as a systematic approach to identifying, assessing, and prioritizing risks. It involves analyzing potential threats and vulnerabilities, evaluating their potential impact, and developing strategies to minimize their likelihood and consequences. By implementing a risk management framework, organizations can effectively mitigate risks and ensure the continuity of their IT operations. When it comes to risk management in IT, it is essential to have a comprehensive understanding of the various factors that can pose a risk to an organization's IT infrastructure. These factors can range from hardware failures and software vulnerabilities to cyber attacks and natural disasters. By identifying these risks, organizations can develop strategies to mitigate their impact and ensure the continuity of their IT operations. The Evolution of Risk Management Software Over the years, risk management software has evolved significantly. In the early days of IT, risk management was often a manual and fragmented process. However, with advancements in technology, dedicated software solutions emerged to streamline and automate risk management processes. As organizations recognized the importance of managing risks effectively, the demand for specialized software grew. The early risk management software primarily focused on risk assessment and analysis. It provided organizations with tools to identify potential threats, evaluate their likelihood and impact, and prioritize risks based on their significance. Now, modern solutions offer real-time risk monitoring capabilities, comprehensive reporting tools, and integration with other IT systems. The Importance of Risk Management Software in Today's IT Industry Companies that utilize risk management software will reap the benefits of mitigating IT risks, and enhanced decision-making. Mitigating IT Risks with Software Organizations can proactively identify and assess risks, enabling prompt and effective mitigation. This allows for the implementation of proactive measures to prevent or reduce the impact of potential threats, minimizing downtime, and safeguarding critical systems and data. With the ability to conduct risk assessments in real-time, organizations can stay one step ahead of emerging threats. Risk management software provides a centralized platform to track and monitor risks, ensuring that no potential vulnerability goes unnoticed. By identifying vulnerabilities early on, businesses can take immediate action to address them and prevent any potential security breaches. Enhancing Decision-Making Processes Risk management software provides organizations with valuable insights and data-driven information for decision-making processes. By analyzing risk reports and trends, stakeholders can make informed decisions regarding resource allocation, investments in security measures, and the development of robust disaster recovery plans. This ensures that the organization's risk management efforts are aligned with its strategic objectives. In addition to improving decision-making processes, risk management software also facilitates communication and collaboration among different stakeholders. With a centralized platform, all relevant parties can access and contribute to risk-related information, fostering a culture of transparency and accountability. Companies can also track key performance indicators (KPIs) and similar metrics to flag areas for improvement and refine their risk management strategies over time. Key Features of Effective Risk Management Software When considering risk management software for implementation, it is crucial to identify key features that contribute to its effectiveness. Real-Time Risk Monitoring Effective risk management software offers real-time risk monitoring, enabling organizations to identify and respond promptly to emerging threats. By continuously monitoring potential risks, companies can proactively address vulnerabilities before they escalate and cause significant damage. Real-time risk monitoring provides them with up-to-date information about potential risks, allowing them to make timely decisions and take appropriate actions. Also, real-time risk monitoring can also help organizations in predicting and forecasting potential risks. By analyzing historical data and current trends, risk management software can provide insights into potential challenges that may arise in the future. This proactive approach allows organizations to develop strategies and mitigation plans in advance, minimizing the impact of potential risks. Comprehensive Reporting Tools Comprehensive reporting tools allow organizations to generate detailed reports, analyze risk trends over time, and share findings with stakeholders. These reporting capabilities enable effective risk communication throughout the organization, facilitating informed decision-making and ensuring transparency. With comprehensive reporting tools, organizations can create customized reports that provide insights into various aspects of risk management. These reports can include information such as risk assessments, risk mitigation strategies, and the effectiveness of risk control measures. Moreover, comprehensive reporting tools can also help companies in meeting regulatory requirements. Many industries have specific regulations and compliance standards that businesses need to adhere to. Risk management software with robust reporting capabilities can assist organizations in generating the necessary reports to demonstrate compliance with these regulations. Integration with Existing Systems Organizations often have multiple systems and databases that store valuable data related to risk management. The ability to integrate risk management software with these existing systems allows for a seamless flow of information and enhances the overall effectiveness of risk management processes. Integration with existing systems enables risk management software to access and analyze data from various sources, providing a comprehensive view of the organization's risk landscape. This integration can include data from financial systems, operational systems, human resources systems, and more. Also, integration with existing systems also improves efficiency by eliminating manual data entry and reducing the risk of errors. Data can be automatically synchronized between different systems, ensuring that risk management information is always up to date and accurate. User-Friendly Interface A user-friendly interface makes it easier for employees to navigate the software, input data, and access relevant information. Intuitive design and clear navigation menus contribute to a positive user experience, increasing user adoption and overall efficiency. A user-friendly interface also enables organizations to effectively train employees in using the risk management software. Training programs can be designed to familiarize users with the software's features and functionalities, so that they can utilize the software to its full potential. Additionally, a user-friendly interface reduces the learning curve for new users, allowing them to quickly adapt to the software and start contributing to the organization's risk management efforts. As the IT industry continues to evolve and face new and complex challenges, risk management software is essential for organizations seeking to mitigate potential risks and safeguard their operations. By understanding the concept of risk management, the evolution of risk management software, the importance of its implementation, and the key features that contribute to its effectiveness, organizations can make informed decisions and enhance their risk management practices. Embrace the indispensable role of risk management software in today's IT industry with Wrike. Start your free trial and witness how our platform enhances risk visibility and control. Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality. 

Demystifying the Essential Elements of a Robust Risk Management Framework
Project Management 10 min read

Demystifying the Essential Elements of a Robust Risk Management Framework

Risk management has become an integral part of organizational success. Effective risk management allows businesses to identify potential threats, assess their impact, and implement strategies to mitigate or avoid them altogether. By doing so, companies can safeguard their assets, reputation, and long-term viability. In this article, we will demystify the essential elements of a robust risk management framework, exploring the key concepts, the role of technology, case studies of successful frameworks, and a step-by-step guide to building your own. Overview of Risk Management Risk management is a systematic process that involves identifying, assessing, treating, and monitoring risks. By proactively addressing potential risks, organizations are better prepared to navigate uncertain situations and make informed decisions. The Importance of Risk Management in Business Risk management is not just a buzzword; it is a critical function that directly impacts a company's ability to achieve its objectives. By implementing an effective risk management framework, businesses can gain several advantages: Enhanced Decision Making: By having a deep understanding of the potential risks and their likelihood, companies can make informed decisions and allocate resources appropriately. Reduced Financial Losses: Proper risk management ensures that potential threats are identified early on, allowing businesses to implement strategies to mitigate or avoid financial losses. Improved Operational Efficiency: By addressing risks in a structured manner, organizations can streamline processes, improve operational efficiency, and reduce disruptions. Protecting Reputation: Effective risk management helps safeguard a company's reputation by minimizing the impact of adverse events and allowing for appropriate responses. Compliance with Regulations: In today's regulatory environment, having a robust risk management framework is crucial for compliance with industry-specific regulations and laws. Key Concepts in Risk Management Before diving into the elements of a risk management framework, it is important to grasp some key concepts that underpin the practice: Risk Appetite: An organization's willingness to take on risk in pursuit of its objectives. It defines the level of risk that the company considers acceptable and aligns it with its overall strategy. Risk Identification: The first step in the risk management process involves flagging internal and external factors that may hinder the achievement of business objectives. Risk Analysis: Assess the potential impact and likelihood of identified risks to prioritize risks based on their severity and likelihood of occurrence. Risk Evaluation: Evaluate the potential impact of the shortlisted risks and determine whether they can be tolerated, treated, transferred, or avoided. Risk Treatment: Implement measures to mitigate, transfer, or avoid identified risks. Risk Monitoring: This is an ongoing process that involves tracking and reviewing risk-related activities. By continuously monitoring risks, organizations can identify emerging threats and make necessary adjustments to their risk management strategies. The Essential Elements of a Robust Risk Management Framework A robust risk management framework comprises several essential elements that work together to ensure comprehensive risk management. These elements include: Identifying and Assessing Risks The first step in building a risk management framework is identifying and assessing potential risks. This involves conducting risk assessments that analyze the likelihood and impact of risks and evaluate the company's vulnerability to said risk. It also calls for engaging key stakeholders, and leveraging historical data and industry best practices. In the healthcare industry, identifying and assessing risks may include analyzing the potential impact of data breaches, medical errors, or regulatory non-compliance. By understanding these risks, healthcare organizations can implement appropriate measures to protect patient information, improve patient safety, and ensure compliance with regulations. Risk Treatment and Mitigation Strategies Once risks are identified and assessed, organizations need to develop appropriate risk treatment and mitigation strategies in order to reduce the likelihood and impact of identified risks. Common risk treatment tactics include implementing risk controls, transferring risks through insurance or contracts, accepting risks within defined risk appetite, and avoiding risks entirely. The selection of the most suitable risk treatment strategies depends on the organization's risk appetite, available resources, and industry-specific considerations. In the financial sector, risk treatment strategies may involve implementing robust cybersecurity measures, diversifying investment portfolios, and hedging against market volatility. These approaches help financial institutions protect their assets, minimize potential losses, and maintain stability in the face of changing market conditions. Continuous Monitoring and Review Risk management is not a one-time exercise; it requires continuous monitoring and review. Organizations need to establish processes to monitor risks, track the effectiveness of risk treatments, and assess emerging risks. By incorporating these essential elements into their risk management frameworks, organizations can enhance their ability to identify, assess, treat, and monitor risks effectively. This comprehensive approach helps organizations build resilience, protect their assets, and achieve their strategic objectives in an uncertain and dynamic business environment. In the manufacturing industry, continuous monitoring and review may involve regularly inspecting production processes, analyzing equipment maintenance records, and evaluating supplier performance. By doing so, manufacturing companies can identify potential bottlenecks, address equipment failures, and guarantee the timely delivery of raw materials, thereby mitigating operational risks and maintaining production efficiency. The Role of Technology in Risk Management Technology plays an increasingly crucial role in risk management. Organizations can leverage technology to enhance various aspects of their risk management framework, including risk identification, analysis, treatment, and monitoring. Leveraging Technology for Effective Risk Identification Technological tools, such as data analytics and artificial intelligence, enable organizations to identify risks more efficiently and accurately. By analyzing vast amounts of data, these tools can uncover hidden patterns and potential risks that may go unnoticed through manual processes.  Also, technology allows organizations to automate the risk identification process, reducing the reliance on manual efforts. This enhances efficiency, improves accuracy, and frees up resources for more strategic risk management activities. Automation even reduces the likelihood of human error. By eliminating manual data entry and analysis, organizations can minimize the risk of overlooking critical information or making incorrect assessments. The Impact of AI and Machine Learning on Risk Management Artificial intelligence (AI) and machine learning (ML) have revolutionized risk management by enabling predictive and prescriptive analytics. These advanced technologies can analyze historical data, identify trends, and forecast potential risks. They can also help organizations optimize risk treatment strategies by recommending the most effective approaches based on historical performance and real-time data.  Moreover, AI and ML can continuously learn from new data, adapting their risk assessment models to changing circumstances. This dynamic approach to risk management ensures that organizations stay ahead of emerging risks and can adjust their strategies accordingly. Case Studies: Successful Risk Management Frameworks in Action Real-world case studies illustrate the effectiveness of robust risk management frameworks in diverse industries. Let's explore two examples. Case Study 1: Risk Management in the Financial Sector In the highly regulated financial sector, risk management is of paramount importance. Banks and other financial institutions have developed sophisticated risk management frameworks to maintain compliance and stability. These frameworks involve comprehensive risk identification processes, stress testing, and scenario analyses to assess potential risks. Risk treatment strategies may include diversification of portfolios, hedging strategies, and rigorous compliance and control measures. Case Study 2: Risk Management in the Healthcare Industry In the healthcare industry, risk management frameworks play a vital role in maintaining patient safety and regulatory compliance. Hospitals and healthcare organizations employ robust risk management practices to identify potential risks, implement effective treatment strategies, and avoid medical errors. Healthcare risk management frameworks encompass various aspects, including patient safety initiatives, compliance with healthcare regulations, and effective communication channels to mitigate risks. These frameworks help preserve patient trust and enhance organizational resilience. Building a Robust Risk Management Framework: A Step-by-Step Guide To establish a robust risk management framework tailored to your organization's needs, follow these key steps: Establishing a Risk Management Policy Define a risk management policy that outlines the organization's approach to risk management. The policy should articulate the organization's risk appetite, accountability, and the framework's overall objectives. Remember to engage key stakeholders, including senior leadership, risk management professionals, and department heads, for alignment and buy-in from all levels of the organization. This sets a strong foundation for a successful risk management framework. Implementing a Risk Assessment Process Identify and evaluate potential risks based on their impact and likelihood. Consider engaging risk management professionals or external consultants to facilitate this process. Collect relevant data, conduct risk workshops, and leverage industry benchmarks for a comprehensive assessment. Prioritize risks based on their severity and likelihood, considering the organization's risk appetite and available resources. Developing a Risk Mitigation Plan Once risks are identified and assessed, develop a risk mitigation plan that outlines strategies to treat or mitigate each identified risk. Consider a combination of risk controls, risk transfers, and risk avoidance strategies. Collaborate with relevant departments and stakeholders to verify that risk treatments are practical and aligned with organizational objectives. Establish clear responsibilities, timelines, and performance indicators to track the effectiveness of risk treatments. Overall, a robust risk management framework is crucial for organizations to navigate uncertainties and achieve their objectives. Understanding the key concepts, leveraging technology, learning from case studies, and following a step-by-step guide can help businesses build effective risk management frameworks tailored to their unique needs. By implementing these essential elements, companies can proactively manage risks, protect their assets, and ensure long-term success. Drive efficiency in your IT projects with Wrike's advanced business process automation features. Sign up for a free trial and experience the power of automation. Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Why Every Business Needs a Risk Management Platform Today
Project Management 7 min read

Why Every Business Needs a Risk Management Platform Today

Businesses of all sizes and industries are constantly exposed to various risks that can negatively impact their operations, reputation, and overall success, and the importance of risk management cannot be overstated. This is where a reliable risk management platform comes into play, serving as a critical tool to help businesses identify, assess, and mitigate these risks effectively.  Understanding Risk Management Risk management is the process of identifying, assessing, and prioritizing potential risks that a business may face. It involves analyzing both internal and external factors that have the potential to disrupt business operations or hinder the achievement of organizational goals. Businesses can proactively put measures in place to minimize the impact of potential risks on their bottom line, protect their assets, and maintain business continuity. When it comes to risk management, businesses need to have a clear understanding of the different types of risks they may encounter. These risks can be categorized into various areas such as financial, operational, strategic, compliance, and reputational risks. Organizations can develop appropriate strategies to manage and mitigate risks, make informed decisions, improve compliance, enhance operational efficiency, and ultimately gain a competitive advantage in today's dynamic business environment. The Role of a Risk Management Platform A risk management platform acts as a centralized system that enables businesses to effectively manage their risks. It provides a range of tools and features that facilitate the identification, assessment, and mitigation of risks. In addition, its real-time risk monitoring and reporting feature allows businesses to stay updated on the latest risks that they may face. Its automated risk assessment and scoring feature, which utilizes predefined risk assessment frameworks or customized risk models to evaluate the severity and likelihood of each identified risk, eliminates the need for manual risk assessments, saving time and effort. Collaboration and communication tools for risk management teams lets your staff work together seamlessly in identifying, assessing, and mitigating risks. As for workflow automation, this feature streamlines risk management processes by automating repetitive tasks and ensuring that each step of the process is followed consistently. It effectively reduces the risk of human error and improves overall efficiency. How a Risk Management Platform Works A risk management platform typically operates by collecting data from various sources within the organization, such as financial records, operational data, and compliance reports. This data is then analyzed and evaluated using predefined risk assessment frameworks or customized risk models. The platform applies advanced algorithms and statistical techniques to assess the severity and likelihood of each identified risk. Once the risks are assessed, the platform generates real-time reports and alerts. These reports provide businesses with a comprehensive overview of their risk landscape, highlighting the most critical risks that require immediate attention. The alerts notify relevant stakeholders about potential risks, so that they are aware of the latest developments and can take appropriate actions. Additionally, risk management platforms facilitates better decision-making by providing businesses with actionable insights. The platform analyzes the data collected from various sources and identifies patterns, trends, and correlations. By leveraging these insights, businesses can make informed decisions about risk mitigation strategies, resource allocation, and business planning. Benefits of Implementing a Risk Management Platform Implementing a risk management platform can provide companies with a wide range of benefits, significantly improving their overall risk management capabilities. Some of the key benefits include: Improved Decision Making A risk management platform provides companies with real-time insights into their risk landscape. This enables informed decision-making by highlighting potential risks and their potential impact on different parts of the organization. By making data-driven decisions, businesses can maximize opportunities and minimize potential losses. For example, let's say a manufacturing company is considering expanding its operations to a new market. By utilizing a risk management platform, the company can analyze the potential risks associated with this expansion, such as political instability or regulatory changes. This information allows the company to make informed decisions about whether to proceed with the expansion and how to mitigate any identified risks. Enhanced Compliance and Governance A robust risk management platform helps organizations align their operations with regulatory requirements and industry best practices. By automating compliance processes and monitoring key risk indicators, businesses can stay ahead of changing regulations and ensure adherence to governance frameworks. For instance, in the financial industry, where regulatory compliance is of utmost importance, a risk management platform can assist in monitoring and managing compliance with anti-money laundering (AML) regulations. By automating the identification and reporting of suspicious transactions, the platform helps businesses maintain compliance with AML laws and regulations, reducing the risk of penalties and reputational damage. Increased Operational Efficiency By streamlining risk management processes, a risk management platform improves operational efficiency. It lets businesses to identify and address risks more proactively, reducing the likelihood of costly incidents that can disrupt operations. Additionally, automation of routine tasks allows risk management teams to focus on strategic initiatives. For example, in the healthcare industry, where patient safety is paramount, a risk management platform can help hospitals and healthcare providers identify potential risks and implement preventive measures. By automating incident reporting and analysis, the platform allows healthcare professionals to focus on delivering quality care instead of spending excessive time on administrative tasks. Choosing the Right Risk Management Platform for Your Business When choosing a risk management platform for your business, it is essential to consider several factors to ensure it aligns with your specific requirements. Some key considerations include: Scalability: Ensure the platform can handle the growing needs of your business. Integration: Look for a platform that can seamlessly integrate with your existing systems and data sources. User-friendly interface: Opt for a platform that is intuitive and easy to use for all stakeholders. Customization: Consider a platform that allows for customization to meet your organization's unique risk management needs. Ultimately, implementing a risk management platform is essential for any business looking to mitigate potential risks and ensure long-term success. By understanding risk management, harnessing the capabilities of a reliable platform, and making informed decisions, businesses can navigate the ever-evolving business landscape with confidence. Comprehend the necessity of a risk management platform for every business today with Wrike. Try our platform for free and build a powerful shield against business risks. Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Decoding Risk Management Systems: An Ultimate Merge of Technology and Security
Project Management 7 min read

Decoding Risk Management Systems: An Ultimate Merge of Technology and Security

Organizations face a wide range of risks that can impact their operations, reputation, and financial stability, such as economic uncertainties, regulatory changes, natural disasters, cyber threats, and even human errors. To navigate through these potential risks successfully, companies need robust risk management systems in place. This is where the amalgamation of technology and security comes into play, offering a powerful solution to effectively navigate the risks and uncertainties. Understanding Risk Management Systems At its core, a risk management system is designed to help organizations identify, assess, and respond to risks in a structured and consistent manner. It involves the integration of people, processes, and technology to create a comprehensive framework that enables effective risk management. By implementing risk management systems, organizations can effectively predict, analyze, and prepare for various risks, thereby ensuring business continuity, enhancing decision-making, and safeguarding stakeholders' interests. Key Components of Risk Management Systems A comprehensive risk management system consists of several key components that work in unison to provide organizations with a holistic view of risks and enable informed decision-making. These include: Risk identification: This involves the systematic identification and categorization of potential risks that an organization may face. It includes identifying internal and external risks, as well as emerging risks that may arise due to changes in the business environment. Risk assessment: Once risks are identified, they need to be assessed in terms of their likelihood of occurrence and potential impact. This helps organizations prioritize risks and allocate resources accordingly. Risk mitigation: This requires the development and implementation of strategies and controls to reduce the likelihood and impact of identified risks. This may include implementing preventive measures, establishing contingency plans, or transferring risks through insurance or other contractual arrangements. Risk monitoring and control: After implementing risk mitigation measures, organizations need to continuously monitor and review the effectiveness of these measures. This assists in identifying any changes in the risk landscape and taking timely corrective actions if required. Risk communication: Effective communication is essential in risk management systems so that that relevant stakeholders are aware of the identified risks, mitigation strategies, and progress in managing risks. This means regular reporting, stakeholder engagement, and training programs to enhance risk awareness and understanding. The Role of Technology in Risk Management Risk management systems, when empowered with the right technology, can significantly enhance an organization's ability to identify and mitigate risks. Technological advancements have revolutionized risk management practices, providing organizations with powerful tools and capabilities to address complex risks and optimize decision-making processes. Technological Innovations Shaping Risk Management One of the key technological innovations transforming risk management systems is the use of artificial intelligence (AI) and machine learning algorithms. These technologies enable organizations to analyze massive amounts of data and identify patterns, correlations, and anomalies that may indicate potential risks. By leveraging AI and machine learning, risk management systems can continuously learn and adapt, improving their ability to detect emerging risks and predict their potential impact. Another significant technological innovation in risk management is the use of big data analytics. With the proliferation of digital platforms and the abundance of data generated by organizations, risk management systems can now tap into vast amounts of information to gain deeper insights into risks. By analyzing structured and unstructured data, risk management systems can uncover hidden patterns and trends, enabling organizations to make more informed decisions and take proactive measures to mitigate risks before they escalate. Benefits of Integrating Technology into Risk Management The integration of technology into risk management systems offers numerous benefits to organizations. First, it enables real-time monitoring and reporting of risks, allowing organizations to respond swiftly and effectively via timely alerts and notifications. Second, it enhances the accuracy and efficiency of risk assessment processes, reducing human error, improving consistency, and saving time and resources. Thirds, technology allows for seamless integration of risk data with other business functions, enabling a holistic view of risks and their impact on various organizational aspects. Companies can gain a comprehensive understanding of the interdependencies between different risks and business functions and make more informed decisions in the future.  Security Aspects in Risk Management Systems In addition to technological advancements, robust security measures are vital in risk management systems to safeguard critical data and protect organizations from potential threats and vulnerabilities. Importance of Security in Risk Management Security plays a crucial role in risk management systems. It not only protects sensitive information but also ensures that it remains confidential and intact. By implementing robust security measures, organizations can prevent unauthorized access, manipulation, or disclosure of their data. They can also succeed in establishing a trusted and secure risk management framework that protects critical data and prevents security breaches. Imagine a scenario where a risk management system lacks proper security measures. In such a situation, hackers or malicious individuals could easily gain unauthorized access to the system, compromising the integrity of the data stored within. This could result in severe financial losses, reputational damage, and legal repercussions for the organization. Measures to Enhance Security in Risk Management Systems Enhancing security in risk management systems requires a multi-faceted approach. Organizations must leverage various techniques and technologies to ensure comprehensive protection against potential threats. Encryption can aid in safeguarding sensitive information by converting it into unreadable code. Even if unauthorized individuals gain access to the data, they won't be able to decipher it without the decryption key. Also, securing the network infrastructure by implementing firewalls and intrusion detection systems can help businesses monitor and control network traffic, preventing unauthorized access and potential attacks. As for access control mechanisms, companies can choose to implement strong authentication and authorization protocols to keep unauthorized users from tampering with or stealing critical information. Regular security audits also assist in flagging any vulnerabilities or weaknesses in the system so that they can be addressed. Lastly, employee awareness programs can educate and train employees about the importance of security and their role in maintaining it. The Intersection of Technology and Security in Risk Management The successful merge of technology and security in risk management systems creates a dynamic and resilient framework that enables organizations to effectively identify, assess, and mitigate risks. Technology acts as an enabler by providing the tools, platforms, and capabilities to streamline risk management processes. It enables the automation of repetitive tasks, accelerates data analysis, and facilitates information sharing. On the other hand, security ensures the integrity and confidentiality of data throughout the risk management lifecycle, safeguarding organizations from potential threats. Future Trends in Risk Management Systems The landscape of risk management systems is continuously evolving, driven by rapid technological advancements and emerging risk factors. Predicted Technological Advancements in Risk Management In the future, risk management systems are anticipated to leverage technologies such as blockchain, Internet of Things (IoT), and advanced analytics to address evolving risks. Blockchain technology can enhance transparency and traceability in risk management processes, while IoT can provide real-time data for risk assessment. Advanced analytics will continue to play a crucial role in identifying complex risks and generating actionable insights. The Future of Security in Risk Management Systems The increasing sophistication of cyber threats necessitates continuous enhancement of security measures. Machine learning algorithms and advanced encryption techniques will be key in strengthening security capabilities and protecting organizations from emerging threats. Overall, risk management systems form the bedrock of organizational success in today's unpredictable business environment. By merging technology and security, organizations can maximize their risk management capabilities, minimize losses, and ensure long-term sustainability. Embracing these advancements and future trends will empower organizations to navigate risks with confidence and stay ahead of the competition. Take control of your risks with Wrike's robust risk management system. Start a free trial today, and see how we merge technology and security to give you peace of mind. Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

How to Create a Strong Contingency Plan
Project Management 10 min read

How to Create a Strong Contingency Plan

Your contingency plan is the backup plan you’ll turn to when the unexpected happens with your project. Learn how to do contingency planning with Wrike.

Understanding Risk Breakdown Structure
Project Management 5 min read

Understanding Risk Breakdown Structure

A detailed risk breakdown structure is critical for project managers in any industry. Don’t let surprises derail your project success or impact key objectives.

Project Risk Assessment (Ultimate Guide to Project Risk, Part 1)
Project Management 5 min read

Project Risk Assessment (Ultimate Guide to Project Risk, Part 1)

BOOM! An asteroid has just collided with Earth. Luckily it was a small asteroid, so we’re all okay. Not so luckily, that lump of space rock landed smack in the middle of your project site. Your new construction, your server warehouse, your team headquarters — your whole project has been flattened to a pancake under a mountain of rubble. What now? Life is full of surprises, and even if you budget every penny and map out each milestone, project risk can sneak up and pull the rug out from under you. You can’t predict the future, but with this Ultimate Guide to Project Risk, you can prepare for it. We’ll tell you everything you need to know about project risk and how to manage risk in a project, including free resources so you can prepare for the next asteroid. Risky business: What is project risk, exactly? Here’s how PMI defines risk: “An uncertain event or condition that has a positive or negative effect on a project’s objectives.” Basically, risk is any unexpected event that can affect your project — for better or for worse. Risk can affect anything: people, processes, technology, and resources. Pay attention to this important distinction: Risks are not the same as issues. There can be positive risks in project management. Not every risk is negative or an issue. Issues are things you know you’ll have to deal with. You may even have an idea of when they'll pop up. (Think scheduled vacations or a spike in product demand just before the holidays.) Conversely, risks are events that might happen, and you may not be able to tell when. (Surprise! A key product component is on backorder and will arrive a week late.) They're slippery, and it takes some serious preparation to manage them. We can break project management risks down into five elements: Risk event: What might happen to affect your project? Risk timeframe: When is it likely to happen? Probability: What are the chances of it happening? Impact: What’s the expected outcome? Factors: What events might forewarn or trigger the risk event? Here's another way to look at it: Every time you back up files on an external drive or in cloud storage like Dropbox, you’re practicing risk management. The collapsible umbrella that lives in your bag rain or shine? That's risk management as well. Start applying that same proactive preparedness to your projects and nothing will shake you. Assessing project risk The first thing you'll want to do is prepare a risk assessment to get a better understanding of the kinds of risks you’re facing and their possible consequences. Here's a step-by-step guide: Step 1: Identify potential risks. Sit down and create a list of every possible risk and opportunity you can think of. If you only focus on the threats, you could miss out on the chance to deliver unexpected value to the customer or client. Ask your team to help you brainstorm during the project planning process since they might see possibilities that you don't.  Step 2: Determine probability. What are the odds a certain risk will occur? It’s a lot more likely that a key team member will be out for a week with the flu than develop total amnesia. Rate each risk with high, medium, or low probability. Step 3: Determine Impact. What would happen if each risk occurred? Would your final delivery date get pushed back? Would you go over budget? Create a business impact analysis to determine the risk of each potential issue and identify which risks have the biggest effect on your project's outcomes, and rate them as high impact. Rate the rest as medium or low-impact risks. TIP: Start using a risk register to log and track risks. (You can create separate registers for threats and opportunities if you wish.) Include risk probability, impact, counter-measures, etc. How Wrike can help assess project risk Wrike has robust risk assessment and management tools to help you identify and plan for project risks. The project risk analysis template allows you to visualize potential risks, prioritize actions to mitigate them, and implement RAID logs into your workflow. Once you've completed your risk analysis, our AI Project Risk Prediction will monitor your projects for risks and assign them a risk level (low, medium, or high). If the AI finds risks, it will flag them in the Project Progress window for you to review and address.  Once you have your risk assessment in place, you're ready to actually start managing the risk, which will be the next installment in this two-part series on the Ultimate Guide to Project Risk. Meanwhile, what are your best risk assessment tips? Share your wisdom in the comments section!

What Are Positive Risks in Project Management?
Project Management 5 min read

What Are Positive Risks in Project Management?

What is a positive risk and how can they impact your next project? Identify, track, and manage positive risks in project management with Wrike.

What Is Risk Identification in Project Management?
Project Management 10 min read

What Is Risk Identification in Project Management?

If you Google ‘why projects fail’ you’ll get several pages of articles and resources, including 5 Reasons Why Project Work Plans Fail and How to Avoid Them here on Wrike. A lot of the reasons are procedural relating to scope definition, methodology, and communication, for example, but there is a common theme: an inadequate risk identification process. Poor risk management isn’t just an issue that impacts big businesses. Smaller businesses are prone to the same types of mistakes and their consequences, which can be just as (if not more) catastrophic for them. Project risk identification is not just for enterprises but a practice that should sit at the core of any business’ modus operandi. What is risk management? Risk management is the process of identifying, tracking, and managing potential risks that can impact the overall health and reputation of a business. The Association for Project Management (APM) in the UK describes it well: “Risk analysis and risk management is a process that allows individual risk events and overall risk to be understood and managed proactively, optimizing success by minimizing threats and maximizing opportunities and outcomes.” Without buy-in from the top, proper stakeholder engagement, and a disciplined approach to risk identification and management, a project will carry a higher risk of failure. The lesson here is to tackle risk at the very start of a project and let your learnings inform decisions relative to scope, process, and resourcing. Consider issues that come up time and again across projects, such as fixed price contract risk, or risk related to certain times of year for customers. Our How to Make a Risk Management Plan article covers this and includes examples you can refer to.  Remember this too — risk management is not just a process but about culture as well As Tom Wilson, Allianz Chief Risk Officer, reminds us: “Risk management is a culture, not a cult. It only works if everyone lives it, not if it's practiced by a few high priests.” On a higher note, there are also risks that can benefit a project. For example, a potential change in an organization’s policy that would remove red tape and save you time. These are typically referred to as opportunities, while negative risks as threats. You can learn more about this by reading our What Are Positive Risks in Project Management? post. What is the risk identification life cycle and process? Diving deeper we find risk identification, which is the first step of the risk management process. We’ve described step one in our Project Risk Assessment guide: "Create a list of every possible risk and opportunity you can think of. If you only focus on the threats, you could miss out on the chance to deliver unexpected value to the customer or client." Notice how the latter part of the definition makes a strong case for including positive risks in your planning — take every opportunity to delight stakeholders. So, how do you go about identifying risks? There are different frameworks for this and you should choose one that best fits your organization's working practices and resourcing. The Project Management Institute (PMI), for example, published a comprehensive guide that explains its model in detail. This may be overkill if you’re working on a simple project or within a small organization but worth understanding nevertheless. Let’s consider context first. Much like a project within a project, the risk identification life cycle is a process that delivers key elements of an overall risk management plan. The Risk Identification process itself follows a defined structure and is elaborated progressively through six stages: Template specification Basic identification Detailed identification External cross-check Internal cross-check Statement finalization How to identify risks in project management For brevity, we’ll focus on the initial three steps as they cover risk identification specifically (while the remaining steps are about validating and formalizing findings against the overall project’s scope). Template specificationThis is a risk statement based on feedback about causes, effects, impacts, areas of risk, and events. A structured template helps you capture this in a consistent way. Basic identificationAnswering two questions about potential risks: why or why not us and whether they have been experienced before. The former can be captured via SWOT analysis exercise while the latter is a statement, ideally referenced from a project post mortem or lessons learned library. Detailed identificationThis step is more time-consuming than the previous ones but also delivers the detail you need to properly assess risk. PMI identifies five tools to use: Interviewing Assumptions analysis Document reviews Delphi technique Brainstorming Once you’ve completed these steps you’ll need to categorize risk in the next one — the External cross-check step. We’ve covered this in our Understanding Risk Breakdown Structure article. Step five is the Internal Cross-check which maps risks to corresponding elements in the scope of work. At this point you will start forming a view of what project elements are riskier than others, and what mitigation strategies to adopt. The final step, Statement Finalization, packages findings in a series of diagrams covering risky areas, causes, and impacts. Tip: Use a tool like Wrike to maintain a risk register spanning all of your projects which you can refer to whenever you start a new one. Risk identification example Here are a couple of examples, the first one based on PMI’s methodology outlined above and the second one captured in an online risk register. Risk identification example 1 Risk identification example 2 The two examples are not necessarily alternative approaches. Rather, the first one is a sample risk identification template, and the second one is a risk register holding the same information. By using an online project management tool it becomes much easier to manage both processes and give visibility to stakeholders. How to make a risk management plan Think of the risks you have identified as the foundation blocks of your risk management plan which typically includes the following elements Risk identification Risk evaluation Assignment of risk ownership to project team members Risk responses Plan to constantly monitor for new risks and address them appropriately By the time you have completed the risk identification step, you will be able to refer back to detailed information for each to evaluate them, assign ownership, and determine responses. Work doesn’t stop once you’ve done that. As the project progresses, you’ll need to monitor for and identify new risks. Risk ownership plays an important role here too, so make sure you’ve defined processes for communication and escalation. This brings us to the next question: who should oversee risk?  Who should oversee risk?  Large organizations appoint risk managers at the C-suite level and often form risk committees with representatives from different departments, who report back to the CEO and the Board. Large organizations will have their risk governance regularly audited by external parties too. The model becomes increasingly ‘risk governance lite’ for smaller businesses but project risk identification and management should always be a priority. It’s good practice to assign responsibilities at the very start of a project, mapping roles with responsibilities. Here’s what this could look like for larger organizations. Project sponsor Has overall responsibility for a project and a view of and signs off on the risk management plan. Project manager Overall responsibility for risk management including communication and escalation. Risk owner This could be a member of the project team or a stakeholder who isn’t part of it but nevertheless owner of individual risks. Risk Committee Has a view of risk across every project of an organization. In smaller organizations, you’ll see business owners wearing the project sponsor hat and are less likely to have risk committees too. The more diligent ones will cover risk just as effectively by streamlining the process. Risk identification template A template to list and analyze risks is an easy way to ensure you and your stakeholders are on the same page. With Wrike's Project Risk Analysis Template, your team can quickly and easily identify potential risks and their scope, mitigate risks by prioritizing certain tasks, and implement RAID (risks, assumptions, issues, and dependencies) logs into your workflow. Wrike's template comes with pre-built request forms to help you create detailed RAID entries when they arise. As you can see from the table above, each risk, along with its impact, probability, and proximity scores, are all listed in one place, so your team can capture and mitigate risks at a glance.  Using Wrike to manage (and mitigate) risks Risk management is a critical and substantial component of project management. It can be an expensive exercise too if you consider that it can eat up to 20% of the total project’s time. It’s therefore surprising to learn that many larger organizations rely on outdated tools like documents, spreadsheets, and emails to manage risk. . This presents all kinds of risks if you think about it. How many times has a file gone missing or an older version updated and circulated? By using a modern, versatile, and powerful project management tool like Wrike you gain efficiency and reduce risk at the same time. Here’s how: Your risk identification and management process is centralized and easily accessible You can design workflows to facilitate steps in your risk management plans You can add multiple levels of categorization and tagging to risks to search them across multiple projects You get alerted of the more critical and high priority risks  You’re always up to date and can run reports at the touch of a button You communicate and collaborate in real-time If this looks like a more streamlined approach than what you’ve currently got then you really need to consider Wrike for your next project. Get started today with a free two-week trial and learn how Wrike can help manage project risks and of all sizes.

What Is a Risk Matrix?
Project Management 10 min read

What Is a Risk Matrix?

Imagine you’re the assigned project manager on a high-stakes project. The project scope is defined, key stakeholders are in agreement, you’re confident you can stay within the budget, and the project team is ready to dive in. They start working tirelessly to meet the agreed-upon objectives — and then an unexpected risk meets you midway through the project. You never saw this one coming, so you have no idea how you’re going to get the project back on track and see it through to success.  If only you had identified and assessed the risk during the project planning phase, you might have felt more prepared to overcome it. That’s what a risk assessment matrix is used for and why you need one for your projects.  What is a risk assessment matrix in project management? Risks in project management are unexpected events that may or may not occur and impact your project outcome in some way. According to the Project Management Institute (PMI), analyzing and managing risks is a key practice in project management. It improves the chances of successful project completion while reducing the consequences of any risk that occurs.  Risks can appear related to any aspect of a project, including the budget, resources, processes, or technology, to name just a few. While it can be easy to assume that all risks bring negative consequences to the table, it’s essential to understand that positive risks can also occur during the project life cycle.  A risk assessment matrix (sometimes called a risk control matrix) is a tool used during the risk assessment stage of project planning. It identifies and captures the likelihood of project risks and evaluates the potential damage or interruption caused by those risks.  The risk assessment matrix offers a visual representation of the risk analysis and categorizes risks based on their level of probability and severity or impact. This tool is a simple, effective way to get a holistic view of the project risks for all team members and key stakeholders. Risk matrix example Let’s take a look at a simple risk matrix example for a project. We’re using a 5x5, five-point scale for the impact and probability in this matrix example, but use a scale system that works best for your team. For example, you can use a 3x3 matrix for less granularity.   Impact or Severity  Probability or Likelihood   Insignificant  Minor Moderate Major Catastrophic Very Likely  Low-Medium Medium Medium-High High High Likely  Low-Medium Low-Medium Medium Medium-High High Possible Low Low-Medium Medium Medium-High Medium-High Unlikely  Low Low-Medium Low-Medium Medium Medium-High Very Unlikely Low Low Low-Medium Medium Medium In this example, you see risk categories ranging from low to high and likelihood ranging from very likely to very unlikely. Using it is as simple as any other matrix: You look for where both of your criteria meet to get your risk rating.  Let’s say you’re the project manager for a new organization-wide software tool rollout and will be working with a consultant to implement it. For this project, consultant delays are possible due to a lack of resources on their end, and if a delay happens, the impact would be major because it would impact the entire rollout plan. We’d categorize this risk as medium-high based on the example matrix.  What are the benefits of a risk assessment matrix? You might be wondering if it’s worth spending the time to assess risks and create a matrix for all of your projects. Well, the benefits of a risk assessment matrix speak for themselves:   You can prioritize all risks with an understanding of the level of severity. Having an overview of all potential risks allows you to prioritize them against one another if multiple risks occur. This prioritization will benefit your project team and help keep them on track if the project does go awry. You can devise strategies and allocate resources for the unexpected. While it’s impossible to fully plan for uncertainty, acknowledging and understanding what risks could occur provides an opportunity to create action plans for those unexpected events. Appropriately planning for risks increases the likelihood of project completion and success. You’ll reduce or neutralize the impact of risks that occur. The unexpected consequences of a risk that’s not thought about in advance might feel more severe and damaging than a risk identified and analyzed early on. Having an awareness of the potential impact can reduce or neutralize the effect of a project risk before it occurs. Hope for the best, but prepare for the worst.  What are the challenges of a risk matrix? While risk matrices can be very useful for identifying and preparing for project risks, they are not an answer to all your project problems. Here are some of the challenges of risk matrices: Inaccurate assessments: The risk matrix categories may not be specific enough to compare and differentiate between risk levels accurately. The severity and likelihood of certain risks are often subjective and therefore unreliable. Poor decision-making: Incorrectly categorized risks can lead to poor decision-making since you do not have an accurate picture of potential issues. Doesn't account for timeframes: Risk matrices don't differentiate between risks that could occur two weeks from now and risks that could occur in two years' time. There is no consideration of how risks could change over the years. Can oversimplify risks: The complexity and volatility of risks can be oversimplified — some risks remain the same over time, while others can change overnight. How do you calculate risk in a risk matrix? A risk matrix is a valuable tool for your project planning, and creating one doesn’t have to be complicated. Follow these steps to calculate risk for a project of your own.  Step 1: Identify the risks related to your project To complete your risk assessment matrix, you need to start by having an in-depth understanding of your project — the scope, budget, resources, timeline, and goal. You’ll need this information to help you spot the potential risks. Identify as many risks as you can with your project team. Consider aspects like scope creep, budgetary constraints, schedule impacts, and resource allocation as the starting points for your risk identification process. Create a risk register complete with all of the identified risks, as it will make it easier to create your matrix.  Step 2: Define and determine risk criteria for your project  No two risks and no two risk matrices are alike, which means you’ll need to work with your project team and key stakeholders to define and determine the risk criteria you’ll use to evaluate each risk you’ve identified.  Remember that two intersecting criteria need to be specified, each with its levels: the probability or likelihood that the risk will occur and the severity or impact the risk will have.  Step 3: Analyze the risks you’ve identified  After you’ve identified and described all of the potential risks, the next step is to analyze them. In your analysis, use your risk criteria to categorize each risk within its appropriate severity level and probability.  Many matrices assign a number value to criteria. So, sticking with our example, you might rate the impact ranging from one (insignificant) to five (catastrophic) and do the same with likelihood, where one represents very unlikely, and five represents very likely. Using the matrix, it’s then easy to multiply severity times likelihood to get a number value. A risk that’s catastrophic and very likely would rank as a 25, whereas one that’s insignificant and very unlikely would rank as a one. It’s a simple and intuitive way to compare and understand risks.  Step 4: Prioritize the risks and make an action plan Your final step is to prioritize the risks and create risk management plans to mitigate or neutralize them, with your risks categorized accordingly. You’ll want to outline the steps you’ll take if the risk does occur and the strategies you’ll deploy to help get the project back on track.  How do you create a risk matrix in Excel? Wondering how to make a risk matrix in Excel? Start by building a table that reflects the probability and severity scales you’ve defined for your risk assessment. Here are a few tips to help you get started:  After you’ve created your table, add your labels to the rows and columns. Use the columns for severity and rows for the likelihood of occurrence. Once you’ve labeled all of your column and row headers, add the definitions for each probability and severity level you’ve outlined with your team beneath the header title. This helps ensure the team is on the same page when ranking risks within the matrix. Use formatting options to color coordinate the matrix for the best visual representation. You can use the stoplight system (red, yellow, green) for high, medium, and low risks, respectively. Using different colors allows any viewer to easily distinguish the risks based on the likelihood that they will occur and the amount of damage or interruption they’ll cause.  How do you create a risk matrix in Wrike?  If an Excel sheet isn’t your jam when it comes to tracking and monitoring risks, you can use Wrike to create a risk matrix. Some of the key features Wrike has that you can use to assess project risk include:  Custom fields that allow you to build out the severity and probability any way you want to. You could turn these into drop-down rankings on a one-to-five scale or use the text option to label your categories. Table view to provide greater visibility into the risks and a similar table to the one you can create in Excel. Reports and calculated fields to automate the data associated with your assessed risks. Interactive Gantt charts that allow you to create task dependencies and streamlined automation of changing project dates and deadlines. Project progress can be monitored in real-time, which allows your team to keep risks top of mind, so the important stuff doesn’t get overlooked. The best part about using a platform like Wrike is that it can automatically update and adjust as your project progresses, saving you from the manual work required in Excel.  What do you do with risk matrix results? So, what does a risk matrix accomplish for you? The short answer is that your matrix results help you create a risk response plan.  To start with, it’s crucial to address the risks that are ranked high or extreme. Depending on the project and your team’s resources, you may only need to monitor the medium and low-risk categories rather than taking immediate action.  Finally, reference your risk matrix throughout the project until it’s marked complete and successful. Don’t make the mistake of not committing to risk management as an ongoing process. Using this tool is a powerful way to support your project team and mitigate any bottlenecks that stand in the way between them and a winning project. Are you ready to get ahead of the game and stop losing sleep over project risks? Sign up for a free trial of Wrike to start building risk matrices with your team today.

What Is a Risk Register in Project Management?
Project Management 7 min read

What Is a Risk Register in Project Management?

Create an effective project risk register that identifies and tracks project risks — from data breaches to supply chain disruptions and catastrophic events.

Risk vs Issue: Everything You Need to Know
Project Management 7 min read

Risk vs Issue: Everything You Need to Know

Whether you realize it or not, we make risk vs. issue calculations all day long.  Let’s consider one issue: You’re running late for work. Why not drive through that red light? Well, because of the risk: Getting pulled over by police, or worse, putting peoples’ lives in danger. So, you wait out the red light. That’s an easy one. Managing risk vs. issue in project management isn’t always so cut-and-dry. But understanding the difference between risk and issue does boost the chances that your project will be a success. Here’s what you’ll need to know to navigate the world of risks and issues in complex projects.  Risk vs. issue: What’s the difference? An issue is an obstacle or challenge that’s already present. A risk is a potential obstacle that may arise in the future but doesn’t necessarily have to. It might sound as if issues are always greater challenges than risks. But the two can vary wildly in terms of degrees. For example, a broken pinky toe is a manageable medical issue. But ignoring a medical risk like a clogged artery can be far more serious. As a project manager, your job is to evaluate both, so you never lose the patient (or the project). Why is it important to note the difference between a risk and an issue? Effective risk analysis hinges on estimating the potential pitfalls in running your project. Ideally, the planning phase will tackle them in reverse: You’ll try to lower the risks at the outset to avoid them becoming full-blown issues. But you’ll need plans for both. To make your own complicated project run smoothly, you need to start backward. Think about the biggest risks with your team and develop plans for them. Run a risk assessment before the initial phases. Remember the old adage that “an ounce of prevention is worth more than a pound of cure.” This is all the more important when launching a complex project. Risk vs. issue examples in project management Still feeling a little confused? Let’s take a look at a couple of examples of risk vs. issue in project management.  Boeing’s 787 Dreamliner: Risk complexity leading to inevitable issues Consider the problems with the unveiling of Boeing’s 787 Dreamliner. It was “a more complicated airplane, with newer ideas, new features, new systems, new technologies,” according to a Boeing engineer. From the outset, this complexity made it difficult to foresee specific issues. But given the novelty of the project, some risks were already present. After several delays — and an additional $10 billion in budgeting — Boeing eventually “outran our ability to manage it effectively,” according to a release from the company. It’s tempting to look at this risk vs. issue example from the outside and imagine that it was an unlucky project with too many issues. But Boeing’s ambitions meant higher levels of risks. Without enough risk management, project issues become inevitable.  Bank of America: When risks prove more intense issues than you imagined In 2011, Bank of America rolled out a new pricing initiative: $5 per month for customers to get access to debit funds. Bank of America anticipated some customer blowback — after all, that’s common whenever prices go up. But customer reaction was far more intense than Bank of America imagined. One customer started “Bank Transfer Day” on Facebook to protest the fees. Customers moved their money out of their Bank of America accounts in droves. Efforts like these had enough impact that the brand was eventually forced to back down on its new fees.  In this case, it wasn’t that Bank of America hadn’t adequately foreseen the risk. They simply hadn’t imagined the risk would manifest as such an intense issue during the rollout phase. Had they spotted this issue earlier, the launch may have played out differently. Issue log vs. risk register: what is the difference? In project management, leaders typically turn to two tools to manage these variables. For risk, they turn to risk registers. This register lists the various risks along with their probabilities and potential timing hazards. (Note: A risk matrix is another effective tool for weighing and predicting risks.) For issues currently affecting the project, an issue log is simply a list of the current problems a team member needs to solve. In one research paper, project manager N.K. Shrivastava says that when a risk manifests as an issue, he makes two key changes: Adding the issue to the issue log to assign it to the relevant team member Flagging the risk in the risk register for better project planning in the future, especially noting which risks were most likely to manifest as issues By flagging the risks that become issues, Shrivastava also grows as a project manager. He learns which issues to spot in potential future projects, making him better at risk assessment for future work. One key difference here: A risk register can be a list of potential obstacles that you create at the outset, while an issue log is only a list of real obstacles. One is essentially in the future tense, while the other is in the present or past tense. How to use Wrike for managing risks and issues In project management, risks are everywhere. There are so many, in fact, that there are even positive risks: unforeseen events that help your project along.  Wrike can help you get started with risk assessment by providing the information and templates you need to begin your evaluation. The key is in using previous risks to inform your future work. If you’re starting your first project, use Wrike’s risk assessment templates to better predict, record, and measure the risks associated with your first project.  With any luck, your analysis at the outset will help you minimize issues along the way, so you can get to the project wrap-up celebration on time and on budget. Ready to foresee risks, manage issues, and have a more successful project? Start your free trial of Wrike today.

How to Create the Ultimate Risk Response Plan
Project Management 10 min read

How to Create the Ultimate Risk Response Plan

What is a risk response strategy and how do you create one for your project? Learn to create a risk response plan with the 4 risk response categories.

How To Produce Effective RAID Logs With Wrike
Project Management 7 min read

How To Produce Effective RAID Logs With Wrike

Produce a RAID log that tracks key risks, assumptions, issues, and dependencies. Successfully implement a risk and issue log for better project results.

List of Suspects Narrowed in Death of Project (Video)
Project Management 3 min read

List of Suspects Narrowed in Death of Project (Video)

SAN FRANCISCO — Police in San Francisco say they have narrowed down their list of suspects in the ongoing investigation into the death of a travel brochure project. The project was originally owned by the advertising agency Sea Cliff, Presidio, and Associates, Inc. The case received national attention last year when the brochure mistakenly featured a photo of the Bay Bridge rather than the Golden Gate Bridge, leading to a dramatic decrease in visitors to the city of San Francisco between June 2013 and June 2014. Mistakes leading to the project's demise occurred over several weeks, and were allegedly made by various members of the project team and their associates. The police are trying to determine which mistakes were truly fatal, to bring the ultimate culprit to justice. In the Wrike-exclusive video below, hear suspect interviews and updates from the Chief of Police as he sheds light on this very public case. According to him, "Unfortunately, we're seeing this type of thing more and more. It's very sad. We hope that by sharing our investigation with the public, we can prevent future project deaths." "There are no words to adequately describe the impact of this blunder on our great city," says an anonymous San Francisco native. Police declined to comment on who they believe to be most responsible at this point. As of this morning, they have not made any arrests. Do You Suspect an Imminent Project Death? If you or any of your colleagues suspect that your own project is approaching its demise, take immediate action! Visit the Project Management Guide for pointers on better team collaboration and asset management, and make sure you immediately report suspected foul play to your project stakeholders, before it's too late. Read Next: Project Risk Assessment (Ultimate Guide to Project Risk, Part 1) Project Risk Management Tools (Ultimate Guide to Project Risk, Part 2) How to Handle a Project Management Crisis (Infographic)

How to Handle a Project Management Crisis (Infographic)
Project Management 3 min read

How to Handle a Project Management Crisis (Infographic)

With every new project comes the risk of a new project crisis (or two or three). As a project manager, you can't be scared to start just because you're worried about what might go wrong. Instead, it's better to fully prepare yourself for any possibility, and then calmly deal with whatever comes your way. In every project management crisis, there are three stages: 1. Pre-Crisis 2. During Crisis 3. Post-Crisis This infographic prepares you with the knowledge you need to handle every stage with a steady hand, so you can guide your team to a successful project completion no matter what obstacles may come your way. Read this quick and easy project management crisis guide before every new project to make sure you're prepared. And when projects feel like they're spiraling out of control, remember that as project manager you have the right skills and resources available to handle the problem: Like this infographic? Share it with your colleagues on social media, or embed it on your blog: Infographic brought to you by Wrike Community Project Management Crisis Tips What's your best advice for dealing with a project management crisis? How have you dealt with failure? Share your wisdom with everyone in the comments below.

Project Risk Management Tools (Ultimate Guide to Project Risk, Part 2)
Project Management 5 min read

Project Risk Management Tools (Ultimate Guide to Project Risk, Part 2)

This is the second in a two-part series for our Ultimate Guide to Project Risk. Read Part 1: Assessing Risk first, then return here to continue. Once you’ve completed your risk assessment, you’re ready to create your risk management response plan (using appropriate risk management tools). Note that risk management isn't something you check off your project to-do list; it's an ongoing process.  Here are the suggested steps on how to manage risk in a project: Step 1: Determine your "risk tolerance"  How much risk can you take on before you consider abandoning the project? This is an essential conversation to have with your stakeholders. Their success is on the line, too. There are a lot of issues to discuss: do they want to be informed when risks happen? Or will it depend on the level of impact? If certain risks occur that could derail the project, do they want to be consulted first, or do you have the authority to act right away? Make sure everyone knows the plan of attack and agrees on the strategy. Stakeholder conflict is one risk you can counteract with open communication. Step 2: Decide which risks to manage Once you've determined the project's risk tolerance level, you can start to identify which risks are worth your time and attention. Even if a risk has a high probability of occurring, if its impact is small — say it would add $200 to your project costs and your budget is $50 million — you may choose to ignore it if counteracting the risk is an inefficient use of your time and resources. Use a risk matrix as a key tool for your risk register to identify which risks fall below your level of tolerance and which you need to plan for. Use your completed assessment to plot each risk on a quadrant: high probability and high impact risks to the upper right; low probability and low impact risks to the lower left. Risk Matrix template from The Program Manager's Blog Pay special attention to that upper-right quadrant. These are risks that are both high probability and high impact. They’re more likely to happen, and if they do, it could be game over for your project. In these instances, you’ll want to be proactive in lowering the probability that the risk will occur (if possible) or have a definite plan in place to counter its effects. Step 3: Identify project risk triggers What cues might indicate a particular risk is imminent? If someone in the office starts sneezing and coughing, that could be a "trigger" your team is about to get hit with the flu bug. Establish roles and responsibilities for monitoring triggers among your team, and determine what steps should be taken if one pops up. Step 4: Create an action plan  What can be done to reduce the probability of a risk occurring or minimize its negative impact? (Can you provide Purell during flu season? Or spread important tasks among the team so progress can be made even if someone’s out for a few days?) If a risk occurs, what's the most effective response? What will your team do, and who's responsible for what? Make sure you've thought each piece through and everyone on your team knows the plan. Step 5: Evaluate  After your project wraps up, step back and consider which parts of your strategy were successful. How effective were your triggers in forewarning risks? How effectively did you react to those triggers, and were you able to successfully prevent any risks from affecting the project outcomes? What could be done to improve for the next project? Start your projects risk-aware, not "risk-free" Discovery, ingenuity, ambition — all businesses and projects involve risk. You'll never be able to eliminate uncertainties, but having a plan in place can keep small problems from growing into full-blown catastrophes. And by acknowledging risk and keeping an eye out for it, you can recognize and jump on fortunate opportunities to deliver value beyond what’s expected. What are your best risk management tips? Share your wisdom in the comments section! Image credit: Viktor Hanacek.

How to Make a Risk Management Plan
Project Management 5 min read

How to Make a Risk Management Plan

Learn how to create a risk management plan tailored to your business. Identify, manage, and overcome obstacles with a detailed and effective project risk plan.

How to Spot Early Signs of Project Failure
Project Management 7 min read

How to Spot Early Signs of Project Failure

Project failure is common, but it can be avoided. Find out more about the project management risks and issues every PM should be aware of and how Wrike can help.

The Right Ways to Risk at Work
Leadership 5 min read

The Right Ways to Risk at Work

Typically, the words “risk” and “work” don’t particularly fit together. It’s widely believed that the best kinds of employees are those who keep their heads down and just go with the flow. There’s nothing wrong with that if you’re both happy and doing your job well. But there’s definitely room for some risk in the workplace. Here are the four best ways to risk at work: 1. Take charge of meetings How you act in meetings largely shows what kind of employee you are. Again, if you simply want to show up to your meetings, jot down notes on what you need to take away, and call it a day, that’s fine; but if you want to set yourself apart, try and shake things up every once in a while. Bring your own ideas to the department meeting, including ideas on how the meetings should be run. Do you know how to make meetings more effective? Maybe you’d like to run a meeting yourself someday! Talk to your superior about your ideas. If nothing else, they’ll see that you’re looking to improve the bigger picture, and that’s how you go from a good employee to a great employee. 2. Ask for a raise the right way If you deserve a raise, ask. Asking for a raise can definitely feel like a risk for a lot of people — they don’t want to rock the boat if things are going well at work, or maybe they just don’t like asking for things. But if you’re doing stellar work and the company is benefiting from your efforts, you should ask. Back up your request with hard data and a professional proposal. Go into the meeting with concrete reasons as to why you deserve the raise. Print out numbers and come prepared with specific examples of how you help the company grow and succeed. 3. Help out coworkers you don’t necessarily need to help out Even if it’s not in your job description to lend a helping hand to people outside of your department, it doesn’t hurt to help a coworker when you have the time. You never know when you might need someone to vouch for your work ethic or return the favor. Generally speaking, the more people who like you, the better off you are. Adding to the positive atmosphere and helping to keep up office morale are two invaluable qualities not every employee can possess. 4. Abandon your ideas when they’re not working out It’s important to stick to your guns when you know you have an idea that will help the greater good of the company, but it’s imperative to know when to let go as well. Consider what is a contingency plan in project management — a strategy to deal with potential scenarios that could ruin your project. You may have planned for certain eventualities in your contingency plan, but when unexpected ones crop up, it can be difficult to admit defeat and change direction. Listen to your coworkers and bosses, accept criticism, and view your work with an unbiased eye. It’s extremely challenging, but try to remove your ego from the equation. When you really need to examine something you’ve been working on, don’t think of it as a reflection of who you are as an employee, but rather just as another project a coworker completed. Is it still good?   Author Bio: Deborah Sweeney is the CEO of MyCorporation.com. MyCorporation is a leader in online legal filing services for entrepreneurs and businesses, providing start-up bundles that include corporation and LLC formation, registered agent, DBA, and trademark & copyright filing services. MyCorporation does all the work, making the business formation and maintenance quick and painless, so business owners can focus on what they do best. Follow her on Google+ and on Twitter @mycorporation.

Stay On Track With Wrike's Business Continuity Plan Template
Leadership 5 min read

Stay On Track With Wrike's Business Continuity Plan Template

Keep on track with your 2020 goals with Wrike’s business continuity plan template, including dashboards, custom forms, and risk mitigation and communication plans and more.