What is a Risk?

PMI defines risk as “an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more [business] objectives.” It’s also defined as the uncertainty of attaining a goal or objective.

Not all risk is bad–Opportunities for advancement are usually accompanied by risk

Risk Management is an organized, analytics process to identify:

• What can go wrong
• The consequences if it goes wrong
• Method of either preventing or handle the problem if it goes wrong

The probability or occurrence of risk is computed as an index to help companies prioritize risk. Strategile computes the risk index as the probability x impact.

Probability is the likelihood should the risk event occur which is qualified as a number between 1-100 (thought of as percentages) with 100 the most likely the risk will occur.

Impact is defined as the severity of the consequences and is qualified as a number between 1-10 with 10 having the most impact to the business.

STEP 1: Capture the Risk and format it as “IF … occurs, THEN … “ and describe the risk in further detail

STEP 2: Capture the probability and impact

STEP 3: Upon capturing the start & projected end of a risk, align the risk to the market, segment, products/services, competitor, PEST, SWOT or Thrust it should be related to:

STEP 4: Assign an action to help mitigate the risk. Those individuals will be requested to create action(s).

STEP 5: Save