Risk identification methods

Abstract

Risk identification is a crucial part of any project, and one of the steps involved in risk management, which is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives.) This should be followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events[1] or to maximize the realization of opportunities[1]. The goal of risk identification is to gain prescience of events that, if they occur, can have an impact on the projects. This could be negative impacts on the project which could lead to the projects ability to succeed is diminished or it could be causing a decline in the efficiency of the project. It could however also be positive risks that can potentially lead to increase in project efficiency or effectiveness. This article describes how risk identification must be in accordance with the type of assessment necessary to support the risk-informed decision-making process.[2] For a specific program, the first step of risk identification is to identify the program goals and objectives, thus creating a shared understanding of what is crucial for successful completion of the program across all team members. This creates the necessary knowledge of the program and the scope, which is necessary in order to identify and assess risks. There are several different methods for identifying risks, which will all be discussed briefly in this article. For at more detailed explanation of the specific method please see the wiki page for that specific method. [[1]Threat Assessment and Risk Analysis An Applied Approach 2016, GregoryAllen, Pages 55-61] [[2]Hubbard, Douglas (2009). The Failure of Risk Management: Why It's Broken and How to Fix It. John Wiley & Sons. p. 46.]