Risk Management

A risk management is very important; it enables company to react in early stage of change in environment and avoiding possible crises. Risk management is a factor of business performance. In order to prove the existence of a relationship between Risk management effectiveness and company performance we defined a Risk management index (RMI) and compare it with three company performance indicators. RMI is determined by ten factors that could be grouped into four categories: risk management system, institutional, instrumental and functional aspect of risk management. The Thesis is: there is a correlation between the existence of an effective risk management system in place and company performance. We used three performance indicators: Return on fixed asset, Return on sale and Operating profit margin to measure the company performance. Results of empirical research shows positive Pearson factor of correlation between RMI and company performance indicators and that the Thesis was proven to be true. Risk management in IT outsourcing projects is a process of identifying, analyzing, controlling and reducing risks in IT outsourcing projects life- cycle.Risk management is important as the practices of risk management will reduce the risks thus lead to success in IT outsourcing projects. Risk management should be conducted in IT outsourcing as it will foresee risks that might disturb the smooth flowing of IT outsourcing and prevent or reduce the impact of risks if they occur. Therefore, the primary objective of this paper is to analyze how organizations conducted risk management in IT outsourcing practices. The findings revealed that organizations highly considered the last phase of risk management in IT outsourcing which is on-going monitoring. The organizations least considered the first phase; analysis of decision to outsource whereas this phase is very important as a preparation to enter IT outsourcing activities. Therefore, even though other phases were highly considered, lack of initial preparation will reduce the probability of success in IT outsourcing. For future works, the weaknesses and vulnerability of current practices will then be enhanced and framework of risk management in IT outsourcing will then be developed.

کلیدواژه ها:

Power Utilities ، Risk management ، Risk Management Index ، performance indicators