Unveiling M_o_R Principles Enhancing Risk Management in Project

Risk management is one of the most important facets of an organisation’s optimal operation. Risk management is conducted by identifying, evaluating and prioritising risks and applying resources to mitigate its effects.

Importance of Risk Management in Organisations gave rise to a framework called the Management of Risk (M_o_R) guide. It consists of M_o_R principles, approach, process and application. This blog will throw light on the M_o_R principles as well as the whole framework of the guide.

Table of Contents

1) M_o_R: An Introduction

2) What does the M_o_R framework consist of?

3) What are the M_o_R principles?

   a) Aligns with objectives

   b) Fits the context

   c) Engages stakeholders

   d) Provides clear guidance

   e) Informs decision-making

   f) Facilitates continual improvement

   g) Creates a supportive culture

   h) Achieves measurable value

4) Conclusion

M_o_R: An Introduction

The M_o_R guide, exemplified by PeopleCert’s certifications, serves to help organisations establish a framework for effective risk management. The guide's purpose is to help organisations in decision-making regarding strategic objectives that concern risk management.

M_o_R can be applied to three elements of an organisation, namely - strategic, change, and operational. The framework helps in better management of threats and opportunities, improves services of an organisation and improves value for money.

What does the M_o_R framework consist of?

The M_o_R framework consists of four components as follows:

1) Principles: The principles help in developing and maintaining ideal risk management practices.

2) Approach: The organisation needs to adapt the aforementioned principles into an M_o_R approach to suit their specific needs.

3) Process: The process consists of four steps, namely - identifying, assessing, planning and implementing risk management strategies.

4) Application: The last component is the total application of the M_o_R approach across the organisation, and ensure optimal risk management.

To know more about M_o_R, sign up for the MoR® 4 Practitioner Risk Management Certification.

What are the M_o_R principles?

The M_o_R framework is built on eight core principles as listed below:

1) Aligns with objectives

2) Fits the context

3) Engages stakeholders

4) Provides clear guidance

5) Informs decision-making

6) Facilitates continual improvement

7) Creates a supportive culture

8) Achieves measurable value

While the first seven are enablers that help in risk management, the final one is the end result when the framework is implemented well. When put together, they collectively form a structure from which an organisation can derive its risk management approach. M_o_R practitioner will help in understanding the implementation of principles to various real time scenarios.

These principles are universal, meaning that they can be applied to any business. The framework can analyse situations at different levels/departments of an organisation, regardless of the industry. However, their implementation may differ as per the needs of the organisation.

Conclusion

All in all, the M_o_R principles along with the other components of the framework ensures proper risk management. By implementing the principles, approach, process and application, one can understand how M_o_R works and an organisation can prevent risks and curb threats according to their needs.

Not only does the M_o_R approach helps an organisation prevent risks, but it also helps create strategies to deal with them. In a competitive world, organisations can only survive if they adapt – and the M_o_R approach helps them achieve that objective by overcoming the challenges of Management of Risk.

To know more about M_o_R, sign up for the MoR® Management of Risk course!