_______________________________________________________________________________________________
E-mail news release
The importance of managing risk
Risks are often identified and analysed in a somewhat random fashion which can often be fatal to the success of a
sound business project, as unexpected risks can arise which have not been assessed or planned for.
Commenting, leading Business Adviser, Kenneth Wright, principal of Stourbridge based Chartered Accountants and
Licensed Insolvency Practitioners, Wright Associates said, “Very early in the preparation and planning stage, it is
essential that potential risks are identified, categorised and evaluated. Rather than look at each risk independently and
randomly, it is much more effective to identify risks and then group them into categories. This way, common
influences, factors, causes, potential impacts and potential preventative and or corrective actions, can be discussed
and agreed upon. Categorising risks is a way to systematically identify the risks and provide a foundation for
awareness, understanding and action.”
Often conflicts over resources arise during the middle to later stages of a project as newer demands come to light,
which then become a higher priority. This can lead to resources that were originally allocated to the project being
taken away, or reduced in quantity or quality, almost certainly to the detriment of the project. “The answer to this
dilemma is not easy. Essentially the project management team must include “conflict over resources during the life of
the project” as a major potential risk and must plan for it accordingly by securing agreements and then monitoring the
situation continuously. If a dispute does arise, there is a role here for mediation to ensure that the allocated resources
are not taken away,” added Kenneth.
The benefits of risk management in projects are huge but an effective risk project management process means
choosing and implementing risk-control strategies that work. Identifying, assessing and developing mitigation plans
are not one-time events. These processes need to recur throughout the life of the project. As the project progresses
and project risk changes arise, documentation resulting from the identification, assessment and mitigation planning
processes needs to be updated. The risk management process must, therefore, be continuous.
While mediation is more often associated with external disputes, mediation can be utilized as an effective tool within
the internal decision-making process where there is a dichotomy as to priority or best utilization of resources.
Kenneth is an accredited and experienced commercial mediator.
ENDS
August 2011
Kenneth Wright can be contacted on 01384 371100
Wright Associates
Insolvency & Turnaround - Debt Solutions - Fund raising - Merger & Acquisition - Mediation & ADR
Share Valuation - Forensic Accountancy - Investigation
First Floor, 56/57 High Street, Stourbridge, West Midlands DY8 1DE
Tel: 01384 371100  Fax: 01384 376111
E-mail: kwright@wrightforbusiness.co.uk  Web: www.wrightforbusiness.co.uk