Main Steps for Risk Management Process

 

A software developer has to work closely with SDLC (Software Development Life Cycle). It is a stepwise approach in building or developing a software or application. In the process, there are phases involving risk management. 

Systems engineers and network engineers play a vital role in handling data breaches through networking or the internet. They help in ensuring data security and managing risks occurring in the development of a software or application. It is necessary to understand the Risk Management Process for a longer run in the development cycle.

 

There are five steps involved in the Risk Management Process. These are:

Identify Risk: The first step in the risk management process is to identify potential risks in the development process. Four risks can come. These are:

·         Financial Risk: Sometimes, due to losses or any other reason, there is an economic crisis in the company or corporation. 

·         Strategic Risk: It occurs with a passing time when new competitors are up, or the brand reputation is at risk. 

·         Operational Risk:  It occurs due to turnover and supplier failure.

·         Hazard Risk: This risk is more often physical, including fire rage or injuries to some employees.

 So, before proceeding to tackle the risk, its identification as to which category does it belongs to. In this phase, risk identification occurs. 

 

Measure Risk: Since you know the potential risk, you have to find how severe or what priority it demands. There is a risk map or heat map by which companies measure the frequency or severity of their risk identified. A heat map is a visualization tool that helps to measure the severity of the risk.

A team of professionals, including systems engineers, software developers, etc., plan about the expenses and time to give for a particular risk after measuring. 

 

Examine Solution: There may be multiple solutions possible for a particular risk. In this phase of the risk management process, alternative or different solutions are available, and professionals analyze solutions to find the optimized solution. 

In most cases, organizations or corporations can choose to accept, avoid, control, or transfer risk. 

·         Accepting A Risk: In this scenario, the company takes the risk as some risks are natural and can benefit in the long run.

·         Avoiding A Risk: It is a situation in which a company decides not to participate in the upcoming risk.

·         Controlling A Risk: It is a preventive step to manage the risk and diminish it.

·         Transferring A Risk: It involves putting forward the risk to someone else, likewise in insurance purchase.

 

Implementation Solution: After much analysis, the final solution implements. In this phase, professionals gather all the necessary resources, including funding, personnel, infrastructure requirement, and any other necessity. 

Finally, the solution implements logically and consistently under a team of professionals.

 

Monitor Results: This is the final phase in the risk management process, but the most crucial one. The process does not end here. Since the risk's discovery, the management is undergoing. It is a never-ending process.

The organization has to monitor the outcomes and analyze the further changes occurring in the process or existing systems.

 

Bottom Line

The Risk Management Process is a crucial phase in any organization or corporation. It helps in maintaining flexible and versatile changes in the organization for the welfare of employees. It also regulates risk management activities and controls the risks in advance. 

In the future perspective, it will help in making better decisions. Also, it will help software developers and software engineers in decision-making while developing software or application.