Do You Know the International Risk Governance Council (IRGC)?

In this podcast, Ricardo talks about the framework created by the IRGC and explains the five steps in this framework. He explains that this model clarifies the various perspectives of risk and it is similar to the risk management knowledge area of PMBOK.

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Episode transcript

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Hello everybody welcome to the five minutes BM podcast today. I like to share with you news about International Risk Governance consult or I our GC. And how do we discovered this eye was a study and prepare myself for the PMI R and B credential, the risk management professional credential in one of the topics that the test covers is exactly Risk Governance. So I was trying to find something about Risk Governance that I can improve in, prepare myself better.

And then I found this extremely interesting and powerful resource to understand Risk Governance. So this organization, it is an independent organization that aims to improve the understanding of potential global risks sold International Risk Governance, Council basically outlines the risks Governance process in a, what is that? It's the identification, assessment management and communication of risk in a very broad context.

And it's show interesting because this compliments a lot, what is on chapter 11 of the PMBOK guide, the risk management chapter. So what's really, really interesting en in their framework that you have five major steps, the pre-assessment a phrasal characterization and a valuation management and communication. So let's talk a little bit about each of them. So the pre-assessment, the pre-assessment clarifies the perspectives of a Risk.

It defines the issues. And it basically, it's very interesting on your website. It's basically draw the baseline of how you we'll do risk management. So this is a pretty much like D process 11.1 plan risk management. So what I like to do each to prepare all of my strategy to handle the, with the risks. So this is the pre-assessment and the second is the phrase of risk, and then a phrasal it's basically understand and make the decisions on whether or not Risk should be taken.

So it's, it's very, it's in the decision making process. So this is quite similar, but quite different from the PMBOK guide. So this makes a lot of aspects of the qualitative and quantitative risk analysis, plus some parts of the response development. So what is Risk and what does not a risk, what that will be taking care of the risk or in what I will not do anything. So this is a little bit of the mix of qualitative and Risk response.

The third process is characterization and evaluation. And what is my objective in this church step is to define if the risk is a septal. So a set, the wider need to do anything. If it's tolerable it's to be pursued because of its benefit. And if subject to a proper, we ate risk reduction measures something like a mitigation insurance transference or, or in extreme cases, the risk is intolerable.

And if so, it needs to be avoided. So this is the final part of the risk analysis, bless the risk response and the management it's to design an implement the actions required to avoid and reduce, transfer, or retain the risk. It's the response implementation. It's something like in the third step, I can decide which kind of response that I want babysit on the phrases, but the management is to implement this.

It's interesting because this process is the only one, one process at the PMBOK out. So this is the plan response and the PMBOK. So its interesting in this process of the PMBOK, I define an implement and make all the adjustments into the plans and prepare everything based on the responses that I am aiming to do and to hear it's a different process. I plan and think what I need to do in the third, the characterization and evaluation and the, you implement this on the management aspect and the last is the communication.

So it's so interesting because look, the last step up the PMBOK guide is the monitoring and control in the last appear is communication white different, but the monitoring control it's pretty much related to the management. So I monitor, I control, I implement the responses. I see what's going on with the risks. This is management and they created the new process, the communication. It says exactly to make sure that everybody we understand the rationale of the decision, this will allow people to make informative choice is about the risks, So responsibility and everything.

It shows me interesting because most of the people talk to that good project management requires extremely competent communication in here on the I our GC process. The communication is one of the steps. So it's really, really interesting. So I'd like to finish this podcast, inviting you to visit their website. They have a book, a free resources. They have this documents explaining this. It looks like a month explaining this process.

It's really, really interesting. And this will help us to open our mind to different perspectives that compliment the knowledge that we have coming from the PMBOK or other methodologist knowledge. It is always a great thing. So in this, this free resource and you can check and it's very, very interesting for all of us folks. I hope you enjoyed this podcast and see you next week with not five minutes BM Podcast.

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Do You Know the International Risk Governance Council (IRGC)?

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