Critical Success Factor In Risk Management

Critical success factors are the elements which ensure efficient and effective implementation of the organizations’ risk management. According to seed paper published by John Rockart in Harvard Business Review on April 1979, Critical Success Factor was introduced and defined as: “(a) The limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organization. They are the few key areas where things must go right for the business to flourish. If results in these areas are not adequate, the organization’s efforts for the period will be less than desired. (b) Areas of activity that should receive constant and careful attention from management. The current status of performance in

According to Grabowski and Roberts (1999), organizational structuring and design, communication, organizational culture and trust were identified as four important factors to identify risk in an organization. However, according to Galorath (2006), different factors were listed for risk management which starts with top-level management support, an integral part of the entire program management structure and processes, the participation of everyone involved, cultural imperative and a pattern of measurement.

There is also a journal which states that risk management requires Turnbull’s approach which can be applied using nine main factors. Importance of sound judgement, identification issues, keeping control of your reputation, assessing the importance of risks, verifying your judgments, changing management, embedding risks, cultural challenges and remuneration issues are the factors related to Turnbull’s approach respectively (Carey,

In risk management, the presence of risk can be in a strong or weak side of the project (Nedeljakova, 2007). Hence, this assessment used to get an overview on options how to lower probability of threat and increase probability of opportunity for the possible risks in future (Nedeljakova, 2007). The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings as Strengths, Weaknesses, Opportunities and Threats (Chapman, 2006) and defined as below:-

• Strengths – the advantage of the organization or business over others (RiskAid, 2015)
• Weaknesses – the disadvantages of the organization or business relative to others (RiskAid, 2015)
• Opportunities – potential aspects of the organization, business or operating environment that could be exploited to its advantage (RiskAid, 2015)
• Threats – potential aspects of the organization, business or operating environment that could damage the organization or business (RiskAid,