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

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Tags of this article: problem-solving,problem-solving-series,risk-management,swot,tools.

Last update February 1, 2008

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