Pro-active: Risk and Opportunity Management

Abstract

Pro-active risk and opportunity management considers risk and opportunity events in a project with the purpose of mitigating the risk and enhance the opportunities before they occur. Risk events occur from uncertainties within a project whereas negative outcome is a risk for the project but positive outcomes can become opportunities for the stakeholders of the project.

A process/model to gain risk control for a pro-active risk and opportunity management is first identifying risks then assess the risks and last treat the risks which result in risk control. There is a fouth step to the process giving after treatment the risk management will be reviewed for analysing the success rate of the risk response/treatment.

Risk as deffinition is proberbility P times the impact I giving the formula:

$R=I\cdot P$

Therefore is key elements in risk management the proberbility and impact that the events will occur and have. For pro-active risk management the key is then to manage these two values, done with different models and methods described further in the article, with the outcome of mitigated risk and enhanced opportunity events.

Introduction

For risk management there is in general four stages to ensure risk control the process is shown on fig. 1

Figure 1. Four stages of classic risk management.

Identify risks

The identification of risks has the purpose to determine if risk events occur whether they are positive or negative for the project.

Assess risks

The assessment of risks

Treat risks

The treatment considering the risks