Risk assessment and Analysis Techniques

1. Risk assessment and Analysis Techniques Executive SummaryRisk Assessment and Analysis TechniquesRisk assessment is an area of concern for all senior executives, but many mid-sizedenterprises do not have the skills, processes, or tools to effectively mitigate risks.Instead of reactively fire-fighting and dealing with issues as they arise, consideradding simple risk assessment & analysis exercises to your project planning process.Download & customize Demand Metrics Risk Assessment Tool, Risk MitigationChecklist, 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 - whats 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, thefishbone diagram is an analysis tool that provides a systematic method for looking ateffects and the causes that create or contribute to those effects. The fishbonediagram is excellent for categorizing potential causes of problems, identifying rootcauses, determining areas for data collection and studying why a process is notperforming optimally.Action Plan:Learn Risk Assessment Techniques - use Risk Analysis (Fishbone) Tool to identifypotential 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 theplanning phase for new projects to minimize your exposure to risks that can beanticipated, or have senior management sign off on accepted risks. © 2009 Demand Metric Research Corporation