Risk Management in Change
Expert-defined terms from the Professional Certificate in Engineering Change Management course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Acceptable Risk #
The level of risk that an organization is willing to accept in pursuit of its objectives. It is the remaining risk after risk mitigation efforts have been implemented.
Change Request #
A formal proposal to make a modification to a product, service, or system. Change requests are evaluated and managed through a structured process to ensure that they are properly assessed, authorized, and implemented.
Risk Appetite #
The amount and type of risk that an organization is willing to take in order to meet its strategic objectives. Risk appetite is a key factor in determining an organization's risk management strategy.
Risk Assessment #
The process of identifying, analyzing, and evaluating risks in order to understand their potential impact on an organization. Risk assessments are used to inform decision-making and to develop risk management strategies.
Risk Avoidance #
A risk management strategy that involves eliminating or avoiding activities or situations that could give rise to risks. This approach is often used when the potential consequences of a risk are severe or when there are no effective risk mitigation strategies available.
Risk Management #
The process of identifying, assessing, and prioritizing risks, and then developing and implementing strategies to manage those risks. Risk management is a critical component of engineering change management, as it helps organizations to identify and manage the risks associated with changes to products, services, or systems.
Risk Mitigation #
A risk management strategy that involves reducing the likelihood or impact of a risk. This can be achieved through a variety of means, such as implementing controls, developing contingency plans, or transferring the risk to another party.
Risk Owner #
The individual or group within an organization that is responsible for managing a particular risk. Risk owners are responsible for developing and implementing risk management strategies, and for monitoring and reporting on the effectiveness of those strategies.
Risk Register #
A document that records and tracks information about the risks that have been identified and assessed within an organization. The risk register typically includes information such as the risk owner, the likelihood and impact of the risk, and the risk mitigation strategies that have been implemented.
Risk Transfer #
A risk management strategy that involves transferring the risk to another party, such as an insurance company or a contractor. This approach is often used when the risk is too large or complex for the organization to manage on its own.
Sensitivity Analysis #
A technique used to evaluate how changes in assumptions or variables will impact the outcome of a decision or plan. Sensitivity analyses are often used in risk management to understand how changes in the likelihood or impact of a risk could affect the overall risk profile of an organization.
Single Point of Failure #
A component or system that, if it fails, will cause a process or operation to fail. Single points of failure are a common source of risk in engineering change management, as changes to these components or systems can have significant impacts on the overall system.
SWOT Analysis #
A strategic planning technique used to identify an organization's strengths, weaknesses, opportunities, and threats. SWOT analyses are often used in risk management to identify potential risks and opportunities associated with changes to products, services, or systems.
Threshold #
A level or point at which a risk becomes unacceptable. Thresholds are often used in risk management to trigger specific risk mitigation strategies or to alert decision-makers to the need for further action.
Value at Risk (VaR) #
A statistical measure used to quantify the risk of financial loss. VaR is often used in risk management to understand the potential financial impact of a risk.
Work Breakdown Structure (WBS) #
A hierarchical decomposition of the work to be performed in a project. WBSs are often used in risk management to identify and manage the risks associated with individual tasks or work packages.