PHASES OF RISK MANAGEMENT

As shown before, risk management is a process whose phases are closely linked and depend
on each other. In other words, if one phase is understood correctly, the next will have a good
basis for being performed in the right manner. Conversely, if one phase of the risk
management strategy is missed or approached incorrectly, the results of the next phases may
be affected as well. In most human activities, risk management is a group strategy, involving
a number of players who are called upon to perform different actions. Specifically, in the
case of translation activities such strategies must be viewed both from the viewpoint of all the
participants required for achieving an optimal final product, and from that of the individual
translator.
Proposed approach to risk management
The traditional risk management diagram proposes four distinct phases of a strategy meant to
reduce potential risks in any activity (PLANNING RISKS ASSESSMENT (including two
sub-phases: Risk Identification and Risk Analysis) CHOICE OF A RISK MANAGEMENT
TECHNIQUE MONITORING RESULTS). This minimal expression of a plan can,
however, be extended and differentiated according to the number of people participating in
the respective activity and to the specific responsibilities involved by each category.

2. a. RISKS
IDENTIFICATION

1. PLANNING

PHASES OF RISK
MANAGEMENT

4. RESULTS
MONITORING

2. b. RISKS
ANALYSIS

3. CHOICE OF
APPROPRIATE
METHOD

Figure 1: Simple diagram of Risk Management stages

In the case of translations, Christiane Nord1 (in Textanalyse und Ubersetzen - translated into
English as Text Analysis in Translation, 1993) proposed a number of factors and
constituents all fundamental in understanding the complexity of this activity having a
marked intercultural and communicative value, as well as a purpose:
a) The source-text producer or initiator (the author)
b) The source text sender (e.g. the publishing house commissioning a translation)
c) The source text itself
d) The source text recipient (the translator)
e) The target text
f) The target text recipient (the readers and critics)
By taking into account each of these factors, the risk management strategy would take the
following form:
A. The planning phase
- What? When? How?
Risk Planning is the continuing process of developing an organized, comprehensive approach
to risk management. The initial planning includes establishing a strategy; establishing goals
and objectives; planning assessment, handling, and monitoring activities; identifying
resources, tasks, and responsibilities; establishing a method to address specific risks; and
deciding on the type of feedback needed for the next phases. Therefore questions such as (a)
what, (b) when and (c) must find an answer separately for each case under focus.
(a) The author writes the text having in mind a certain plot, a specific purpose, a clear
message (the communicative value of the whole text) and a target audience; at the same time,
the source text sender may have a different purpose than the authors. Upon accepting the
commission, the translator must have a clear idea of all the above in order to render the text
corectly, with the same communicative value in the target language.
The what question may also focus on the expected risks associated to the degree of text
difficulty, as well as on the primary and secondary tools needed for the project. Another
question to be answered is related to the potential readers expectations; these represent an
important variable, because preferences, attitudes and opinions differ according to age,
profession or major interests. Unfortunately, except for highly specialised texts whose endusers are clearly specialists in the respective domain, the initiators of translation projects
Nord, Christiane (1993). Textanalyse und Ubersetzen, in Amsterdamer Publikationen zur Sprache
und Literatur. Translated into English as Text Analysis in Translation: Theory, Methodology, and
Didactic Application of a Model for Translation-oriented Text Analysis. Rodopi 2005.
1

rarely give translators any hints regarding the post-reading effects and statistics on this topic
are few.
(b) The when element refers to a timeframe, to deadlines and various risks related to them.
In real life events, there is a significant difference between the work of a translator and that of
a conference interpreter. In the first case, translators benefit from a number of days, weeks or
months until the specified deadline; in the second case the activity is immediate, leaving no
time for reflection or a choice between variants of translated terms. The amount of stress
related to conference interpreting is significantly higher, therefore, than in the case of text
translation.
(c) The how element is closely connected to the personal approach to the task at hand.
Different translators apply different working methods, and the same applies to conference
interpreters. This is the area in which applying a good strategy may render the best results.
Each of the factors involved in the translation activity can be treated in a similar way. At the
same time, if this activity is viewed as the work of just one individual, an initial planning is
meant to emphasize both the actual strategy chosen and the specific resources and tasks
which are to be used according to a persons norms and habits.
B. The risk assessment phase
The risk assessment phase includes the processes of identification and analysis of the risks
associated with the life cycle of the system. Once a potential risk is correctly identified and
defined, measures to avoid or solve it are easier to apply.
Risk Identification
These activities are meant to establish the weight of different types of risks, as well as an
order of priorities. Here are some proposed risk identification options:
Identifying risk/uncertainty sources and drivers;
ISO 31000:2009 defines the sources of risk as those factors which, either by themselves or
in larger numbers, show the intrinsic potential to give rise to risk. At the same time, certain
risks may be enhanced or reduced due to certain drivers
Transforming uncertainty into risk;
Uncertainty is an indefinite, indetermined possibility which, under certain conditions, may
become a risk. The conceptual difference between the two was explained by Knight (1921)
by saying that risk is present when future events occur with measurable probability, while
an uncertainty emerges every time that the likelihood of future events is indefinite or
incalculable.2
Quantifying (calculating the weight of) each risk;

Knight, Frank H. (First edition 1921). Risk, Uncertainty and Profit. Boston, MA: Hart,
Schaffner & Marx, pp. 27-28

In the case of any human activity, risks can be quantified as being high moderate low.
According to this threefold evaluation those risks which are considered higher must be
addressed first, then followed by actions focusing on moderate ones; finally, low risks are the
last to be taken into consideration.
Deciding upon the probability of said risks taking place;
It is a fact that risks are everywhere, even if we are not always aware of their existence. Each
human activity is likely to meet specific risks at one time or another; the purpose of a risk
identification phase is to list as many of the potential likelihoods as possible and to make an
inventory of their presumed characteristics, for future phases on analysis.
Establishing the order of priority among risk variants;
An order of priority is important for the next phases of risk management. Risks which are
thought of having the most unpleasant effects for the future activity of an individual or
organisation must be placed on top of the list. A good example is the potential emergence of
an economic crisis. A freelancer has little chances to foresee the signs of emergence for such
an event, but will definitely feel its effects expressed in smaller fees and fewer proposals
for new projects. By comparison, an organisation such as a translation agency must
provide a set of emergency measures to be taken in order to protect its members.
Risk Analysis
The purpose of a risk analysis stage is to isolate the cause of each specific risk, to determine
the potential impact in each case, and to choose the appropriate action needed to solve it. Risk
analysis is useful in order to determine what risk should be tracked, what data is used to track
risk, and what methods are used to handle the risk.
Risk analysis explores the options, opportunities, and alternatives associated with the risk. It
addresses the questions of how many legitimate ways the risk could be dealt with and the best
way to do so.3
Among other benefits, the risk analysis stage provides a chance to assess any collateral
effects of an inappropriate choice of action, the way in which it affects either partly or
entirely the project at hand.
C. The choice of a risk control method
An important factor in controlling risks is to acknowledge the fact that there is always a
degree to which risks are acceptable. Consequently, the main purpose of risk management (or
control) is to maintain any potential risks within acceptable limits.
In practice, choices range from avoiding risks to transferring (delegating) them to a different
constituent. For instance, in the case of multiple tasks (especially in cases of group
activities, such as software localization) tasks with a higher degree of risks must be assigned
to those who are better prepared (e.g. IT specialists) to assume them. However, even in such

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cases, the final product is perceived as a result of group efforts and the entire group risks to
be criticized by end users or other stakeholders.
It is also important to note that risks are not passive and the level of risk may change during a
specific activity. It is difficult to anticipate all potentially negative consequences, irrespective
of the complexity of the chosen strategy.

D. Results reporting and further monitoring

When an activity (e.g. translation) comes to an end it is easy to review the various risks
which were related to it (those expected to appear and those which were unexpected and
possibly influenced the accuracy of the final product). As a rule, task coordinators require the
presentation of a full report because such data may be very helpful in future activities. Any
monitoring of future activities with a similar purpose thus becomes easier. At individual
level, writing down such a report with the positive and negative issues regarding the project
can also be of help for future activities.
Example of a risk management plan
The following example (see Table 2) proposes a risk management plan for a project
concerning a set of guidelines and best practices for terminology management (e.g.
specialized terminology used in a civil engineering glossary). The risk management strategy
must take into account, among other things:
- The role of terminology for an effective internal and external communication
- The process of knowledge transfer
- The importance of training
- The risks related to promoting the guidelines and glossary on the internal and external
markets (where, how, when)
- Solutions for mitigating terminology management risks
- Risks related to the workflow and division of tasks
Table 2: Example of risk management plan
PROJECT
NAME

Planning
phase
WHAT?
A useful tool
for translators
and engineers,
important for
effective
and
Specialised internal
glossary of external
terms from communication

Risk
assessment
phase
1. Identification of
risks:
(a) Excessive
workflow for each
participant in the
project;
(b) Few chances to be
advised by specialists
(c) Difficulty of

Choice of risk
control method
- Supervisor
coordination
and monitoring

Results
reporting
- Confirmation
of the deadline
being met

- dividing the
workflow into
more pieces

- glossary
checking and
editing was
performed

- better

publication outside the

faculty
(d) Licence for
translation tools (e.g.
TRADOS)
(e) More dictionaries
needed
2. Identifying causes:
- Lack of
HOW?
Team-work
communication
Good training
between departments
Use
of - Budget limitation
databases and - Different levels of
dictionaries
knowledge of
participants in the
project

the field of
civil
engineering WHEN?
The deadline is
set in three
months

coordination
between
translators

- publication
still pending

- better
selection of
translation team
members with
similar level of
knowledge
- more funds
allotted to buy
licences and
dictionaries

The table above is just an example of the way in which the main phases of a risk management
plan should be assessed. Each separate project must have its own plan, thus enabling
freelancers or teams to work with a greater chance for success.
The results reporting phase is an important post-project phase for activities involving several
team members and in which all the activities are coordinated by a project manager. It usually
happens in the case of larger organisations, such as translation agencies, in which each
project is coordinated separately and responsibilities are divided according to supervisors
decisions. Nevertheless, freelancers are advised to perform their own results assessment;
reviewing the difficulties met in each phase of the project is helpful for avoiding specific
risks when new projects come up. Keeping a written record of all these results is also helpful
for ones activities.