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Implementation & Assessment Methods

Implementation of the risk management plan requires the company to consider a couple factors for the success and effectiveness of the risk management plan. First, the firm must assign responsibility to a risk manager or managers to ensure the management plan can be carried out and individuals risks' owners are identified. This assignment gives individuals adequate authority and access to resources to ensure the success of the management plan. Therefore, it is important that the management team sets a clear outline as to who is responsible and for what areas of the strategic risks. Secondly, in a broader sense, the company must remain committed to the plan. This commitment should include providing adequate financial and human resources for risk managers to carry out the implementation of the plan. Most importantly, the risk manager must understands that evolving nature of the risk management plan, and to adjust the plan accordingly to reflect the changes in the phrases or stages of a strategy. For example, a risk being addressed may not be as important as previously thought; therefore, the management team should reflect such change in its plan and allocate resources originated from this risk to other ones. Also, certain risks addressed will or will not occur at a particular stage or phase of a project, and the management team should update such change to keep the plan current. Keeping a current plan frees up resources to those risks identified as more current or severe. Certain risks might result in overspending or under, affecting the resources available for the management plan. Thus, the adequacy of the financial and human resources for the success of the risk management plan should be frequently reevaluated to give as much advance warning as possible for excess contingency or future inadequacy.

Assessment of the strategic risk must involve a cross-functional team that establish and maintain a review process for the company's new and current strategy. The cross-functional team should include representatives from key departments within the organization such as management, marketing, legal, operations, and technology. By assembly a cross-function team for the assessment of strategic risk allows the company to obtain a dimensional perspective on its strategy, receiving different inputs to fully grasp the situation. The assessment should establish objective criteria for each strategy. To assess a particular strategy, the team should also consider whether the risks being addressed may be derived from sources such as government policy, macroeconomics, natural, social industrialization and technological uncertainty. For instance, a cosmetic company wants to upgrade its products overseas as a strategy to leverage its revolutionizing technology to gain comparative advantage must consider whether such technology is in compliance with the local government or not.