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Risk management is the art or practice of dealing with risk. It includes planning for risk, assessing (identifying & analyzing) risk issues, developing risk handling strategies, and monitoring risks to determine how they have changed. My core area of works is in the field of engineering consultancy for various road projects in Dubai, which includes project planning and monitoring the performance of these projects, most of the times we face delays as well as cost overrun at these projects. Intension of doing the project works in this area is to form a procedure/systematic approach for identification and management of various risks in the road project with the help of various lean tools and TOC concepts.
The risk management is not new to the organizations where as there is lack of awareness and systematic approach towards it. Risk management plan is successfully being implemented in Banks, Oil Companies, Health care etc also the IS 31000 suggests the frame work which can be implemented in any kind of industry irrespective of type & place. IS 31000 guidelines can be modified as per the specific industry requirements. (Ref ISO 31000 page v "Introduction")
The above simulation is just a guide line to reach to a specific probality figures where as there are limitations to this method , one it is assumed that these variables for each risk are independent and analysed independently but practically there can be relationship between two or more risk issues.