How do you identify, assess and manage risks? What are the steps to risk assessment and why is important?
Re: Why is risk assessment important?
You can develop a risk matrix, it will determine potential hazards and then rank them on a graph by least likely to most likely to occur and then develop possible solutions for it.
Re: Why is risk assessment important?
Step one is to clarify what you class as a risk. Some risk factors will directly influence your project, some will indirectly do so.
Its important to realize that risk factors at the start of the project will be very different to those that will come later as the project proceeds .
Once all potential factors have been listed , its then important to class them as key risk areas, mediocre risk and minimum risk.
Then we highlight the impact of risk in each factor , so we know exactly what we are dealing with.
Then comes time to decide what actions we can take in tackling that risk factor. Can we avoid it? if not completely , can we minimize it? Is it possible to pass it on in some form ? In the end its important to acknowledge that if worse comes to worse , must we accept the damage , how prepared are we to deal with that situation and hedge ourselves against the impact.
Re: Why is risk assessment important?
We have tried risk assessment matrix and it works just fine whether the risk is direct or indirectly. Thanks for the help guys!