HERE YOU WILL:
A. Understand the general characteristics of "risk identification" process;
B. Know the importance of this process for the general risk management;
C. Find different methods to apply the risk identification process.
Time needed to review this content: 30 MIN
Risk identification is an interative process in the risk management area, that helps a company or project to find and solve the risks that can affect the quality and success of a project.
Risk identification is the process of determining risks that could potentially prevent the program, enterprise, or investment from achieving its objectives. This process includes documenting and communicating the concern. Risk identification is an absolutely necessary process in the development and the success of a company and must be clear and easy to understand.
Risk identification is the main and critical process in the risk management area.
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The objective of risk identification is the continuous identification of events that, if they occur, will have negative impacts on the project's of the company
These risks may come from within the project or from external sources.
The Risk Identification is an iterative process.
There are different methodologies for Risk identification.Here are some important points to consider for this matter:
- Documentation Reviews;
- Information Gathering Techniques - Brainstorming, Delphi Technique, Interviewing, Root cause analysis;
- Checklist analysis - previous similar project, lowest level RBS;
- assumption analysis;
- Diagramming Techniques - cause and effect diagram, system and process flow chart, influence diagrams;
- SWOT Analysis;
- Expert Judgment.
An exhaustive review of the documentation of a project is necessary to identify risks of missunderstanding and/or lack of definition in the project. Once the documentation is reviewed, gathering information is required by organizing brainstorming, interviews with the actors etc. to identify the problems. Then it is crucial to list the the risks found to have a clear route map to follow. A SWOT analysis and the judgment of the expert could conclude the process with a clear identification of the risks. This process is have to be performed for any project and and from time to time have to be aplayed to the whole company policy. After the risk identification also called risk analysis is done, the process of risk management will begin. There are many tools available for risk identification and analysis to choose from depending on the sector, the size of a company or its activity.
This pill is not a relation of all the methods available but encourages you to be aware of the importance of a good identification of risks in any project and give you some keys to found deep references and papers on many methods for anaylising the risks.
VIDEO
Risk Identification and assessment, by Iyad Mourtada
This video explains in an easy to understand way the process of identifying risks and assessment.
Understanding the risk identification, by Alfredo Armies
A video explaining step by step one of the methods for risk identification.
TIPS AND TRICKS:
Examine your project within its environment and make a quick SWOT analysis.
Choose the best method for your protection to be applied.
Determine if you are going to need external experts help for the analysis.
SUMMARY:
Understanding the importance of identifying risks;
Know how to search and find different methods of risk identification;
Be aware of the risk identification in your company.
THINK OF SOME ANSWERS TO THE FOLLOWING QUESTIONS:
Did I understand the importance of identifying and detecting the risks in my company?
Do I need external support for identifying risks?
Do I have a culture in my company to avoid or at least identifying risks?
