Business (IT) Risk Management

Business Risk Management focuses on the risks that involves Business operations, systems and processes. Business Risk Management helps a BA to identify, prioritize and address the risks which in turn help in minimizing unforeseen incidents and penalities. It has been understood that every business involves risks and these risks can be pridictable and controlled or non-predictable and un-controlled. Business Risk Management covers all the risks ranging from the basic ones like wind, fire, injuries, accidents etc to more sophisticated ones like product liabilities, employee practises, management decisions etc. 

Business Risk Management can hence be classified as the technique to identify or track down all the factors that effect the success of the project on time. The Business Risk Management team identifies and categorizes the risks and then find the control that can help in mitigating these risks. These risks in IT Business are:
     1. Unexpected revenue change.
     2. Unexpected cost change.
     3. Unexpected software plan change.
Keeping all these factors in mind the Business Risk Management team needs to follow five step process to minimize the business risks which are:
     1. Identify the risk.
     2. Review the probability.
     3. Make a plan defining how to decrease the risk.
     4. Put the made plan into action.
     5. Analyse & Monitor the process again and restart from step1 if required.

Each and every company faces risks and thus there needs to be a comprehensive team of Business Risk Management. Generally the team deals with five types of risks:
     1. Developmental - whether the product is developed as per the requirement / specification.
     2. Manufacturing - whether the product produced is having specified volumes to serve the needs.
     3. Marketing - whether the product will be popular among the users.
     4. Financial - whether the product will be profitable.
     5. Growth - whether the demand of the project will increase or not.

If the risks are improperly addressed, assessed and prioritized , working on them will be a waste of time and brain. Thus it is important for a Business Risk Management team to measure the risks on the basis of impacts and probabilities before working on them.