Assess Risk:
- Identify Risks: Use brainstorming sessions, interviews, and surveys to identify potential risks. Consider both internal and external factors.
- Prioritize Risks: Use a risk matrix to categorize risks based on their probability and impact. This helps in focusing on the most critical risks.
Managing Risk:
- Avoidance: Change plans to eliminate the risk or condition. For example, if a project poses too much risk, it might be scrapped or altered significantly.
- Reduction: Implement measures to reduce the likelihood or impact of the risk. This could involve improving processes, training staff, or implementing new technologies.
- Transfer: Shift the risk to a third party. This is commonly done through insurance policies or outsourcing specific functions to specialized firms.
- Acceptance: Acknowledge the risk and decide to accept it without any changes, often done when the cost of mitigation exceeds the potential impact of the risk.
- Continuous Monitoring
Mitigating Risk
- Risk Register: Create a document that lists all identified risks, their assessment, and mitigation plans. This should be regularly updated and reviewed.
- Contingency Planning: Contingency plans for high-priority risks to respond quickly if a risk materializes.
- Key Risk Indicators (KRIs)
- Scenario Analysis
- Training and Education
Leo :) 