Thereare several different steps involved in decision-making process.However, the most difficult one or underused is how to make a firmdecision. This is because of the different options one may have toconsider, not forgetting their advantages and disadvantages (Luecke &Harvard, 2006). The people making the decision should haveconsiderations of the risks that the decisions will have. It is vitalto use risk analysis as part of the decision making process. The riskmanagement team should begin by analyzing both the gains and threatsof the project. For very threat found, what could be the possibleevent if it occurs, what effect would it have, and find out theactions you can take to counter attack it, then include the actionson your project plan from the beginning of the project(Luecke &Harvard, 2006). Due to the early thinking of the possible threats,when it occurs you will have best counter actions based oneffectiveness while considering cost. It will be easy to act withless emotional distraction.
Themost overlooked information when making risk and quality managementdecisions is the human factor. The management sometimes forgets toinvolve the people in the organization to give their views concerninga decision they are making. The reason for overlooking them is thefact that when every person in the institution gives suggestions, theresults would contain numerous information, which might lead toconfusion. For instance, the company may experience delayeddecision-making, and forgetfulness due to the information overload.In addition, the management might end up using selective method tomake the decision whereby the decision makers’ end up ignoring someinformation. The remedy to this issue is that at least the topmanagement should ensure that when making any important decision forthe company, they should involve several key people from alldepartments to get their opinions before concluding on any decision.
Thereare different tools that risk management team can use to makeeffective risk and quality management decisions. Firstly, documentreview is critical for all records in order to obtain comprehensivedata about the project and be able to identify the risks involved(Linkov & Ramadan, 2005). Secondly, diagram techniques such asflow charts are vital in order to reveal the internal and externalfactors that may cause risky situations. Flow charts break downdifficult issues into easy ones for purposes of understandingdiagrams. Thirdly, the use of SWOT analysis concept whereby the teaminvolved may divide the risk into the four groups. This assists inidentifying the most common risk to occur in the project at hand. Ithelps enhance opportunities and strength while at the same timereducing the weaknesses and threats (Linkov & Ramadan, 2005).Fourthly, is through information gathering techniques. This is wherethe team collects information through brainstorming workshops,interviews, and establishing the original cause of the risk or therisks that are bound to occur. Lastly, the risk management team mustuse the checklist analysis. This tool compares the current projectfrom a similar or previous project to ensure that all risks arerecognized (Linkov & Ramadan, 2005).
Thetool that might not work is the assumption analysis. This is becausesome assumptions may be full of errors or wrong assumptionsconcerning the project. Therefore, the information from assumptionmay be misleading and might cost the company huge finances, ascompared to using other tools which provide facts in regard to therisks involved.
Luecke,R., & Harvard Business School. (2006). Decisionmaking: 5 steps to better results.Boston, Mass: Harvard Business School Press.
Linkov,I., & Ramadan, A. B. (2005). ComparativeRisk Assessment and Environmental Decision Making.Dordrecht: Springer Science + Business Media, Inc.