Organizations wishing to implement a formal approach to risk management (or to improve their existing approaches) require a clear definition of objectives, proper planning and resourcing, and effective monitoring and control. Additionally, these organizations need a tool that can help them to identify the areas of improvement and to measure the progress in improving risk management. A risk maturity model (RiskProve) is such a tool that can be used for this purpose.
The term ‘maturity’ for a project is known as a measurement concept that demonstrates progress in development. Maturity in terms of risk management indicates an evolution towards full development and application of the risk management process. Linked closely with continuous improvement, risk management maturity expresses the degree of formality and application of risk management activities in an organization.
The concept of maturity models is rooted in the field of quality management and can be traced back to the quality revolution of the 1970s. During the last decade, several maturity models were expanded to other domains. The European Foundation for Quality Management (EFQM), the INK (the Dutch version of the EFQM) model, and the Project Excellence Model are some examples of maturity models. The past decade also saw the development of several RMMs.
An RMM aims to measure the maturity of risk management in projects and/or organizations. Maturity in terms of risk management means an evolution towards the full development of risk management processes. RMMs help to improve the risk management processes in projects. A major benefit of an RMM is the possibility to identify the areas of strengths and weaknesses in risk management. There is a close link between risk management maturity and success of projects. Identifying the maturity of risk management can contribute to minimizing costs and improving profitability.For the complete article click here