Question

What are ways to identify risk?

What are aspects of dealing with risk management?

What are ways to respond to risk?

Answer 1

What are ways to identify risk?

Interviews – Identify the key stakeholder in the process and plan the interview. Document the result.

Brainstorming – For the group of people or do this exercise one on one with involved stakeholder. Objective is to brainstorm on the most significant task related to the project. Then do the brainstorming on identifying the risk related to the project.

Checklist- After each project form the checklist of identified risk from the project. This checklist can be used in subsequent project to ponder on the probable risk.

Cause and effect diagram – This is powerful methodology to identify the causes that give rise to various risk in the project. This is mostly related to the man, material, machine, environment, method.

Affinity diagram – Form the group of people and ask them brainstorm on various risk. Later on ask them to form the group of risk under various categories and give label to the category.

Fault free analysis- Reverse brainstorming is carried in this method. Factors are identified which can contribute to the undesired event. Then these factors are listed as probable risks.

Incident analysis- Reported as well as identified risks are noted down in register periodically. The root cause analysis is carried out on such incidents. Running analysis can lead to identifying new risk.

What are aspects of dealing with risk management?

Risk has low potential loss in the early stage. So, identify risk and manage it at the early stage is very crucial.

Always use combination of risk identification techniques.

Risk should be identified with the appropriate stakeholders.

Risk should be capture in consistent manner like cause à Risk à Impact

Probability and severity of impact gives us the priority to address the risk.

Risk has root cause at people, process, technology and environment. Same has downstream effect on cost, performance, capability and security.

Risk statement should include Role of person, service / operation involves, context and identified risk with probable value of loss.

What are ways to respond to risk?

There are four main responses to the identified risks.

Avoid Risk – If we find out that identified risk is not worthy of doing task at hand to gain the reward, its better to avoid it and find another way to perform the work.

Reduce Risk – If we cannot abandon the activity altogether, in this case try to minimize the risk. So negative outcome of the activity is reduced in this case.

Transfer Risk – We make arrangement to transfer the risk to another stakeholder. Insurance industry help us in transferring our risk to the company. We are safeguarded against heavy unexpected losses.

Accept Risk – For risk that receives low score on impact and likelihood, it is better to accept it rather investing to avoid or transfer it.