Technology As Innovator

Risk Analysis

Category: Analysis

How to use

Risk = probability of event x cost of event

Write down answers to the following questions:

Identify Threats

Threats may include:

• Human
• Procedure: internal system, organization
• Nature: weather, disaster, disease, accident
• Technology: technical failure
• Politics: tax, public opinion, policy
• Project:budget, time
• Finance: stock, business failure, interest rates
• Others

Estimate Risk

By using formula based on key indicators

Prioritize the risks and create risk management plan.

Managing Risk

Select a cos-effective approach.

Risks can be managed by:

• Using existing assets
• Using contingency planning: choose to accept a risk, but develop a plan to minimize its effects
• Investing in new resources

Advantage

Risks analysis allows you to examine the risks that you or your organization faces in a structured approach. It focuses on probability and cost of events occurring.

Risk analysis forms the basis for risk management.

Previous volumes of the series

1. Introduction
2. Reversal
3. Appreciation
4. Drill Down
5. SWOT Analysis

SWOT Analysis

Category: Analysis

How to use

Write down answers to the following questions:

Strength

• What are your advantages?
• What do you do well?
• What do other people see as your strengths?

Weaknesses

• What could you improve?
• What do you do badly?
• What should you avoid?

Opportunities

• Where are the good opportunities facing you?
• What are the interesting trends you are aware of?
• Note: useful opportunities can come from things such as:
  • Changes in technology
  • Changes in market
  • Changes in policy
  • Changes in social patterns, lifestyle

Threats

• What obstacles do you face?
• What are your competitors doing?
• Is changing conditions threatening your position?
• Do you have cash flow problems?

Advantage

This tool helps you focus on your strengths, minimize your weaknesses, and take advantage of opportunities available.

Previous volumes of the series

1. Introduction
2. Reversal
3. Appreciation
4. Drill Down

Drill Down

Category: Decomposition

How to use

Write the problem. Next, write the next level detail on the problem. Recursively break down each item into details.

Example

A restaurant quality problem can be broken down:

Advantage

This tool helps you break down a complex problem into workable pieces.

Previous volumes of the series

1. Introduction
2. Reversal
3. Appreciation