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ProjectManagementMilestone1

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The general idea of corporate risk management remains to be a key strategy in dealing with some of the emerging issues. Some of these emerging issues are the idea of risk management in procurement and contract negotiation. Ideally, any company will want to ensure that it is in line with some of the modern trends and techniques when it comes to these two important aspects of the organizations running. But how do a company identify risk, assess the impact of the risk to the functioning or longevity of the company, how do they initiate prevention response, or how do they mitigate or come up with contingency plans? This discussion chooses to highlight how a company can successfully initiate risk management practices concerning how these measures will serve their interest. According to Van Wyk, Bowen, and Akintoye (2007), corporates should majorly focus on three aspects of risk management. These are managing risk within their corporate scope, managing risk within their distribution division, and initiating risk management of the recovery plan project. Within the corporate scope, every company should initiate a risk management committee that will be able to oversee and ensure that company’s risk management strategies and processes are aligned with best practices. Risk management within the distribution division line should also be initiated through a committee that will ensure various processes, such as assisting with the business decision-making process when a lot of information becomes available as a result of the risks being executed. Secondly, this approach will be necessary for the facilitation of learning from and incorporation of lessons likely to be executed, and thirdly, the approach is likely to facilitate learning and incorporations of lessons from the past. Risk management towards recovery plan projects should be focused on factors such as risk identification, risk analysis, and risk response towards the initiated recovery plan. References Van Wyk, R, Bowen, P, and Akintoye, A. (2007). Project risk management practice: The case of a South African utility company. International Journal of Project Management 26 (2008)   149–163.