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(RISK-1955) Risk Management Capability Assessment

Primary Author: Mr. Louis Fussell

Audience Focus: Intermediate
Application Type: Research Venue: 2015 AACE International Annual Meeting, Las Vegas, NV, USA

Abstract: Risk management is a recommended practice for project management and a growing practice with major organizations. Risk management is important in assessing and responding to threats, opportunities, and uncertainties that organizations face at a project, program, and enterprise level. A high quality risk management practice helps organizations reduce their overall risk and increase the probability of success in its various ventures. It is important to gauge the success of risk management implementation because of the value risk management adds to a business. Several organizations have developed methodologies, called maturity or capability models, for determining how well an organization is implementing risk management. The authors describe the common elements of the various approaches to provide an understanding of the essential elements of a capability assessment. A framework for conducting an assessment is described, including criteria for making the assessment and providing recommended actions given the assessment result. Conducting this type of assessment will help organizations improve their risk management practice to provide greater value to the business.