Risk Assessment & Analysis Techniques
Risk assessment is an area of concern for all senior executives, but many mid-sized enterprises do not have the skills, processes, or tools to effectively mitigate risks. Instead of reactively 'fire-fighting' and dealing with issues as they arise, consider adding simple risk assessment & analysis exercises to your project planning process. Download & customize Demand Metric's Risk Assessment Tool, Risk Mitigation Checklist, and Risk Analysis (Fishbone) Tool, and add to your skills arsenal.
What are the Key Components of Risk Assessments?
- Risk Identification - what is the event that could trigger a problem or risk?
- Expected Outcomes - how will this risk affect your project or company?
- Business Impact - how large is the threat to continued business operations?
- Probability - how likely is the risk to occur, given the information available?
- Risk Mitigation Plans - what's your contingency plan? Are controls in place?
What is a Simple Method for Risk Analysis?
Fishbone Diagrams - originally developed in Japan by a quality control expert, the fishbone diagram is an analysis tool that provides a systematic method for looking at effects and the causes that create or contribute to those effects. The fishbone diagram is excellent for categorizing potential causes of problems, identifying root causes, determining areas for data collection and studying why a process is not performing optimally.
Action Plan:
- Learn Risk Assessment Techniques - use Risk Analysis (Fishbone) Tool to identify potential risks, and then use our Risk Assessment Tool to document risks, outcomes, impact, probability, and risk mitigation strategies.
- Add Risk Mitigation to your Processes - use a Risk Mitigation Checklist in the planning phase for new projects to minimize your exposure to risks that can be anticipated, or have senior management sign off on accepted risks.
