In the Defence industry, Risk Management is paramount. Most Defence companies have a whole department dedicated to it. No bid or project can start without a Risk Management Review and no bid will be accepted by a potential customer without the inclusion of a Risk Management Plan.
Risk Management is an ongoing process – it’s cradle to grave, starting on receipt of an invitation to tender, covering the bid period, the life of the project up to delivery then on through subsequent support phases.
Risk management is the identification, assessment and prioritization of risks followed by an allocation of resources to minimize, monitor and control the probably of unfortunate events and to maximize the realization of opportunities or investments. The strategy to manage risk includes transferring risk to another party, avoiding the risk, reducing the negative effect of risk, or accepting the consequences of the particular risk.
Risk management is not only a financial concept. There are many other types risk management. Schedule risk management is very common. Scope risk management is another type that has many applications.
