Risk happens!: managing risk and avoiding failure in business projects by Clayton Mike

Author:Clayton, Mike [Clayton, Mike]
Language: eng
Format: epub
Tags: Business & Economics, General, Project Management
ISBN: 9789814351805
Google: fGv7tgAACAAJ
Publisher: Marshall Cavendish International (Asia) Pte Limited
Published: 2011-08-15T05:00:00+00:00

PRIORITISE YOUR RISKS

We have already seen two ways you can prioritise risks: RAG status, and the multiplication of likelihood and impact values. Flawed as both methods are, they offer a good guide to priorities. Let’s examine another method.

Team Scoring of Risks

Give everybody in the team a copy of all of the risks that you have identified, and ask them to identify the top 10, allocating 10 points to that which they consider the greatest concern, 9 to the next, and so on down to 1. When everyone has done this, simply add up the scores for each risk.

Be sure to examine risks where one or two individuals have a very different perspective from the bulk of the group. Have they simply got it wrong, or have they instead spotted something important that everyone has overlooked? There is no substitute for discussion and exploration.

The “Sleep at Night Test”

When you have a ranked list of your risks, use your gut instinct to find a cut-off between the risks that will cause you to lose sleep and those that won’t; this is a simple way to find your top tier of risks. If you do this with a group and everyone ranks the risk in order of where the cut-off is for them, you will get a distribution like the one in Figure 5.12. This will give you a more rounded basis to decide on your top tier of risks.

Figure 5.12: The “sleep at night test” Results

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