Risk management strategy - Revision history

Tkokotas at 11:27, 20 December 2018

2018-12-20T11:27:15Z

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			''Developed by Matthias Koch''


	[[File:ISO 31000-2009 risk management strategy.JPG\|thumb\|300px\|Risk management strategy as defined be ISO 31000:2009<ref>[ISO 31000:2009]</ref>]]		[[File:ISO 31000-2009 risk management strategy.JPG\|thumb\|300px\|Risk management strategy as defined be ISO 31000:2009<ref>[ISO 31000:2009]</ref>]]
	“When trouble is sensed well in advance in can be easily remedied; if you wait for it to show itself any medicine will be too late because the disease will have become incurable. As the doctors say of a wasting disease, to start with it is easy to cure but difficult to diagnose; after time… it becomes easy to diagnose but difficult to cure.” (Machiavelli, 1514) <ref>[Niccolo Machiavelli “The Prince”]</ref>		“When trouble is sensed well in advance in can be easily remedied; if you wait for it to show itself any medicine will be too late because the disease will have become incurable. As the doctors say of a wasting disease, to start with it is easy to cure but difficult to diagnose; after time… it becomes easy to diagnose but difficult to cure.” (Machiavelli, 1514) <ref>[Niccolo Machiavelli “The Prince”]</ref>

MartinKruck: /* Example */

2014-12-01T19:06:11Z

Example

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	=== Example ===		=== Example ===

	After the meeting, Steve tells the other guys to remember to check up on each of the identified risks at least once a month. They also agrees to have a meeting in June to reevaluate the risks and find new risks.		After the meeting, Steve tells the other guys to remember to check up on each of the identified risks at least once a month, using a check-list. They also agrees to have a meeting in June to reevaluate the risks and find new risks.

	== Conclusion ==		== Conclusion ==

MartinKruck: /* Risk Monitoring */

2014-12-01T19:05:33Z

Risk Monitoring

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	This will decrease the likelihood of negative impacts on the project, thus encourage a more successful project.		This will decrease the likelihood of negative impacts on the project, thus encourage a more successful project.

			=== Example ===

			After the meeting, Steve tells the other guys to remember to check up on each of the identified risks at least once a month. They also agrees to have a meeting in June to reevaluate the risks and find new risks.

	== Conclusion ==		== Conclusion ==

MartinKruck: /* Risk process responses */

2014-12-01T19:02:30Z

Risk process responses

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	In the rare cases where a benign risk will have a major impact on a project, but not likely to happen, the risk should be further researched, leading to ways to improve the likelihood. It goes without saying that the cost of implementation should not be larger than the potential gains. If the research proved fruitful the risk should be nurtured to a more probable level.		In the rare cases where a benign risk will have a major impact on a project, but not likely to happen, the risk should be further researched, leading to ways to improve the likelihood. It goes without saying that the cost of implementation should not be larger than the potential gains. If the research proved fruitful the risk should be nurtured to a more probable level.


			=== Example ===

			Steve then talks for the guys about how to process each risk

			* 5 - Sickness or injury: Should be transferred. The transfer could be hiring part-time workers or having a temp at hand.
			* 3 - Accidents: Should be both mitigated and transferred. The transfer lies in have an insurance, but the consequences of an accident could be lessened by wearing protective gear.
			* 1 - Lack of bikes: Should be mitigated. This could be done by have a spare bike ready in case of emergencies, having spare parts for minor repairs and training in repairing the bicycles.
			* 4 - Lacking supplies: Should be transferred. Steve suggests that the guys makes a deal with a store, that runs the same wares and make a trade agreement. This way the business is not responsible for the keeping a ready supply.
			* 2 - Missing suppliers: Should be accepted. Finding another supplier will only be a problem is the business also lacks supplies.

	== Risk Monitoring ==		== Risk Monitoring ==

MartinKruck: /* Example */

2014-12-01T18:46:50Z

Example

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	\| 1 - Lack of bikes \|\| <math>4*2=8</math>		\| 1 - Lack of bikes \|\| <math>4*2=8</math>
	\|-		\|-
	\| 2 - Missing suppliers \|\| <math>1*2=3</math>		\| 2 - Missing suppliers \|\| <math>1*3=3</math>
	\|-		\|-
	\| 3 - Accidents \|\| <math>2*4=9</math>		\| 3 - Accidents \|\| <math>2*4=8</math>
	\|-		\|-
	\| 4 - Lacking supplies \|\| <math>1*5=5</math>		\| 4 - Lacking supplies \|\| <math>1*5=5</math>
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	Put into the probability-impact matrix:		Put into the probability-impact matrix:
	[[File:LC-matrix ex1.png\|300px]]		[[File:LC-matrix ex1.png\|300px]]


			The prioritize list of risks is therefore:
			* 5 - Sickness or injury
			* 3 - Accidents
			* 1 - Lack of bikes
			* 4 - Lacking supplies
			* 2 - Missing suppliers

	== Risk processing ==		== Risk processing ==

MartinKruck: /* Risk assessment */

2014-12-01T18:42:47Z

Risk assessment

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 *The matrix does not map uncertainties.
 *The matrix' trade-off between likelihood and consequences is fixed and might not suit all projects.
 == Risk processing ==

MartinKruck: /* Example */

2014-12-01T18:34:18Z

Example

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	! style="background:#d0e5f5" \| Impact		! style="background:#d0e5f5" \| Impact
	\|-valign="top"		\|-valign="top"
	\| 1 - Lack of bikes \|\| The guys think that this might happen to ~~one of them once~~ during a season. \|\| ~~This will reduce their income by a third per incapacitated bike per day~~, ~~which~~ is ~~dangerous to the project~~.		\| 1 - Lack of bikes \|\| The guys think that this might happen to some times during a season. \|\| The bikes are easily replaced or repaired, but this is a bit expensive.
	\|-		\|-
	\| 2 - Missing suppliers \|\| The guys believe that all contracts are sign before start-up, this is not likely. \|\| This could prove to be a moderate set back.		\| 2 - Missing suppliers \|\| The guys believe that all contracts are sign before start-up, this is not likely. \|\| This could prove to be a moderate set back.
	\|-		\|-
	\| 3 - Accidents \|\| The friends believe that this is likely to happen \|\| This ~~would also infer~~ a ~~moderate~~ impact.		\| 3 - Accidents \|\| The friends believe that this is not likely to happen, since they are all experienced cyclists \|\| This will have a serious impact.
	\|-		\|-
	\| 4 - Lacking supplies \|\| Adam, John and Fred does not think is likely to happen \|\| However, should the business be out of stock it could take weeks to resupply, which will be a great loss of money.		\| 4 - Lacking supplies \|\| Adam, John and Fred does not think is likely to happen \|\| However, should the business be out of stock it could take weeks to resupply, which will be a great loss of money.
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	! style="background:#d0e5f5" \| Impact		! style="background:#d0e5f5" \| Impact
	\|-valign="top"		\|-valign="top"
	\| 1 - Lack of bikes \|\| 2 \|\| 4		\| 1 - Lack of bikes \|\| 4 \|\| 2
	\|-		\|-
	\| 2 - Missing suppliers \|\| 1 \|\| 3		\| 2 - Missing suppliers \|\| 1 \|\| 3
	\|-		\|-
	\| 3 - Accidents \|\| 3 \|\| 3		\| 3 - Accidents \|\| 2 \|\| 4
	\|-		\|-
	\| 4 - Lacking supplies \|\| 1 \|\| 5		\| 4 - Lacking supplies \|\| 1 \|\| 5

MartinKruck: /* Risk analysis */

2014-12-01T18:25:25Z

Risk analysis

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 *The risk's uncertainty is marked Yellow if one question has gotten a "Yes".
 *The risk's uncertainty is marked Green
 == Risk assessment ==

MartinKruck: /* Example */

2014-12-01T18:11:45Z

Example

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	2. The remaining suppliers does not sign a contract. Products will either not be available, leading to poorer service or more expensive deals will have to be struck to ensure the right products.		2. The remaining suppliers does not sign a contract. Products will either not be available, leading to poorer service or more expensive deals will have to be struck to ensure the right products.

	3. Traffic accidents. Since the business revolves around bicycling in a busy city.		3. Traffic accidents leading to sick days. Since the business revolves around bicycling in a busy city.

	4. Suppliers cannot meet demand. The decision to use high quality good, means that changes to increase supply quantities takes a long time to realize.		4. Suppliers cannot meet demand. The decision to use high quality good, means that changes to increase supply quantities takes a long time to realize.

MartinKruck: /* Example */

2014-12-01T18:03:18Z

Example

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	Steve arranges a meeting with the three friend, to discuss possible risks. The group comes up with a lot of possible risks, by telling Steve about their business model and answering his ".. but what if.."-questions. Some of these are listed below:		Steve arranges a meeting with the three friend, to discuss possible risks. The group comes up with a lot of possible risks, by telling Steve about their business model and answering his ".. but what if.."-questions. Some of these are listed below:

	* Bicycles are unusable due to wear, damage or theft. This would induce a serious impact on the business since they only have three bicycles and relies on mobility.		1. Bicycles are unusable due to wear, damage or theft. This would induce a serious impact on the business since they only have three bicycles and relies on mobility.

	* The remaining suppliers does not sign a contract. Products will either not be available, leading to poorer service or more expensive deals will have to be struck to ensure the right products.		2. The remaining suppliers does not sign a contract. Products will either not be available, leading to poorer service or more expensive deals will have to be struck to ensure the right products.

	* Traffic accidents. Since the business revolves around bicycling in a busy city.		3. Traffic accidents. Since the business revolves around bicycling in a busy city.

	* Suppliers cannot meet demand. The decision to use high quality good, means that changes to increase supply quantities takes a long time to realize.		4. Suppliers cannot meet demand. The decision to use high quality good, means that changes to increase supply quantities takes a long time to realize.

	* Sickness or injuries. The business relies on that Adam, John and Fred are able to bike in any weather. Should any one of them be unable to work due to sickness or injuries the business will lose a third of it earnings.		5. Sickness or injuries. The business relies on that Adam, John and Fred are able to bike in any weather. Should any one of them be unable to work due to sickness or injuries the business will lose a third of it earnings.

	== Risk analysis ==		== Risk analysis ==