Managing RISK while Consulting

Consulting has always been a difficult task when the problem of the Client is huge and complicated.Its obvious that the greater the problem,the more the Client ready to pay for it.If a Consultant wish to undertake higher value-added engagements, he is likely to expose itself to greater risk.The bigger the organization,bigger are the issues,more time required to understand the organization,lot of analysis.In the above scenarios,Risk Management is a real necessity.

The key to good risk management is an early assessment of where the risks may occur.The best way is to categorize risks to Clients,Engagement,Methodologies,People and Fees/Contract.The power structure of the Client needs to be understood.The pre-conceived notions of the Clients can create a clash.Its always necessary to understand your client especially in big organizations.Especially, in a big organization,nature of engagement is important.It could be that a solution in a big organization is being sought for an immensely difficult issue.The likelihood of finding such a solution must be assessed.Methodologies that are well proven reduce risk.Its always necesaary to match the skills of the Consultants with that of the staff in the Organization.It helps in understaning the problem better and co-operation among both the parties increases.Finally,there should be a clear cut understanding of the payment procedure,clauses,liability terms n conditions.

A good risk management leads to a better Consulting!!