Risk Identification Process
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Risk identification involves identifying and classifying the sources of a risk to realize what must be managed. Risk identification is the first step in risk management process as the potential problems must be identified before assessment, respond and control of the risk can take place. Although it is one of the key elements in the process, it is one of the less defined, and often neglected element. | Risk identification involves identifying and classifying the sources of a risk to realize what must be managed. Risk identification is the first step in risk management process as the potential problems must be identified before assessment, respond and control of the risk can take place. Although it is one of the key elements in the process, it is one of the less defined, and often neglected element. | ||
There are several basic methods for risk identification; documentation review, information gathering, checklist and risk catalogs, assumption analysis and diagram techniques. The method of gathering information is the most common method of identifying risk sources and involves brainstorming sessions to obtain a comprehensive list of possible risks and relying on the knowledge of experienced project participants, stakeholders and experts to identify the risk. The other methods involve reviewing all project documentations to identify inconsistencies or uncertainties, developing risk checklist based historical information and data from prior projects, analyzing the validity of the project assumptions, identifying the risks from the inaccuracy, instability, inconsistency, or incompleteness of assumptions, using cause and effect diagrams, diagrams which show how various elements of a system interrelate and the mechanism of causation and graphical representations showing causal influences, time ordering of events, and other relationships among variables and outcomes. These methods for identifying risk sources, which can be internal, project and external risks, are profoundly important for the overall risk assessment for projects in thus, in a way, the success of the project. | There are several basic methods for risk identification; documentation review, information gathering, checklist and risk catalogs, assumption analysis and diagram techniques. The method of gathering information is the most common method of identifying risk sources and involves brainstorming sessions to obtain a comprehensive list of possible risks and relying on the knowledge of experienced project participants, stakeholders and experts to identify the risk. The other methods involve reviewing all project documentations to identify inconsistencies or uncertainties, developing risk checklist based historical information and data from prior projects, analyzing the validity of the project assumptions, identifying the risks from the inaccuracy, instability, inconsistency, or incompleteness of assumptions, using cause and effect diagrams, diagrams which show how various elements of a system interrelate and the mechanism of causation and graphical representations showing causal influences, time ordering of events, and other relationships among variables and outcomes. These methods for identifying risk sources, which can be internal, project and external risks, are profoundly important for the overall risk assessment for projects in thus, in a way, the success of the project. | ||
Revision as of 11:47, 12 June 2017
Risk identification involves identifying and classifying the sources of a risk to realize what must be managed. Risk identification is the first step in risk management process as the potential problems must be identified before assessment, respond and control of the risk can take place. Although it is one of the key elements in the process, it is one of the less defined, and often neglected element.
There are several basic methods for risk identification; documentation review, information gathering, checklist and risk catalogs, assumption analysis and diagram techniques. The method of gathering information is the most common method of identifying risk sources and involves brainstorming sessions to obtain a comprehensive list of possible risks and relying on the knowledge of experienced project participants, stakeholders and experts to identify the risk. The other methods involve reviewing all project documentations to identify inconsistencies or uncertainties, developing risk checklist based historical information and data from prior projects, analyzing the validity of the project assumptions, identifying the risks from the inaccuracy, instability, inconsistency, or incompleteness of assumptions, using cause and effect diagrams, diagrams which show how various elements of a system interrelate and the mechanism of causation and graphical representations showing causal influences, time ordering of events, and other relationships among variables and outcomes. These methods for identifying risk sources, which can be internal, project and external risks, are profoundly important for the overall risk assessment for projects in thus, in a way, the success of the project.
