Determine interrelationships and correlations of identified risks
5
Calculate overall combined risk using quantitative methodologies
6
Build a risk model
7
Simulate risk model to predict likely outcomes
8
Perform sensitivity analysis on the model
9
Evaluate risk mitigation options
10
Approval: Director of Risk Analysis Results
11
Develop risk response plan based on accepted mitigation strategies
12
Presentation of quantitative risk analysis findings
13
Approval: Upper Management for Presented Findings
14
Implement risk response plan
15
Monitor and control identified risks throughout process
16
Continuous improvement of quantitative risk analysis process
Identify and prioritize risks
This task involves identifying and prioritizing risks that may affect the overall process. You will need to think creatively and consider all possible risks, regardless of their likelihood or impact. The goal is to create a comprehensive list of risks that will be further analyzed and prioritized.
1
High
2
Medium
3
Low
Define risk probability and impact
In this task, you will define the probability and impact of each identified risk. This step is crucial in assessing the severity of each risk and determining the level of attention it requires. Consider the likelihood of each risk occurring and the potential consequences if it does happen.
1
Very low
2
Low
3
Medium
4
High
5
Very high
1
Negligible
2
Minor
3
Moderate
4
Significant
5
Catastrophic
1
Technical
2
Financial
3
Operational
4
Legal
5
Reputation
Quantify potential risk events
In this task, you will quantify the potential risk events identified in the previous steps. This involves assigning numerical values to the probabilities and impacts of each risk event. The goal is to have measurable data that can be used for further analysis and decision-making.
Determine interrelationships and correlations of identified risks
In this task, you will determine the interrelationships and correlations between the identified risks. This involves analyzing how one risk event may influence or be influenced by other risks. By understanding these interdependencies, you can better assess the overall impact and prioritize risk mitigation strategies.
Calculate overall combined risk using quantitative methodologies
This task involves calculating the overall combined risk using quantitative methodologies. You will use the numerical values assigned to the probabilities and impacts of each risk event to determine the overall risk score. This score represents the level of risk associated with the entire process.
Build a risk model
In this task, you will build a risk model that represents the identified risks and their interrelationships. The risk model can take various forms, such as a diagram or a spreadsheet. The goal is to visualize the risks and their interactions in a structured and intuitive way.
Simulate risk model to predict likely outcomes
This task involves simulating the risk model to predict likely outcomes. By running simulations, you can assess the potential scenarios and their probabilities. This helps in understanding the range of possible outcomes and preparing for different situations.
Perform sensitivity analysis on the model
In this task, you will perform sensitivity analysis on the risk model. This involves changing the variables and parameters to test the model's sensitivity to different inputs. By doing so, you can identify the key factors that significantly influence the outcomes and adjust the model accordingly.
Evaluate risk mitigation options
In this task, you will evaluate risk mitigation options to reduce the overall risk level. Consider different strategies and solutions that can be implemented to minimize the impact of identified risks. Assess the feasibility, effectiveness, and cost of each option.
1
Risk transfer
2
Risk avoidance
3
Risk reduction
4
Risk acceptance
5
Risk sharing
Approval: Director of Risk Analysis Results
Will be submitted for approval:
Quantify potential risk events
Will be submitted
Determine interrelationships and correlations of identified risks
Will be submitted
Calculate overall combined risk using quantitative methodologies
Will be submitted
Build a risk model
Will be submitted
Simulate risk model to predict likely outcomes
Will be submitted
Perform sensitivity analysis on the model
Will be submitted
Evaluate risk mitigation options
Will be submitted
Develop risk response plan based on accepted mitigation strategies
In this task, you will develop a risk response plan based on the accepted risk mitigation strategies. This plan outlines the specific actions and measures to be taken to address each identified risk. It includes assigning responsibilities, setting deadlines, and establishing monitoring mechanisms.
Presentation of quantitative risk analysis findings
In this task, you will prepare a presentation of the quantitative risk analysis findings. The goal is to communicate the results and insights gained from the analysis to stakeholders in a clear and concise manner. Use visual aids, charts, and graphs to support your presentation.
Approval: Upper Management for Presented Findings
Will be submitted for approval:
Develop risk response plan based on accepted mitigation strategies
Will be submitted
Presentation of quantitative risk analysis findings
Will be submitted
Implement risk response plan
This task involves implementing the risk response plan that was developed in the previous step. Take the necessary actions and measures outlined in the plan to address each identified risk. Monitor the progress and ensure that the plan is being followed effectively.
1
Not started
2
In progress
3
Completed
Monitor and control identified risks throughout process
In this task, you will monitor and control the identified risks throughout the entire process. Regularly assess the status of each risk, track any changes or emerging risks, and take proactive measures to control and mitigate them. This ensures that the risk management process remains effective and responsive to evolving circumstances.
Continuous improvement of quantitative risk analysis process
This task involves continuously improving the quantitative risk analysis process. Reflect on the effectiveness of the process, identify areas for improvement, and implement changes to enhance the accuracy, efficiency, and relevance of risk analysis. Consider feedback from stakeholders and lessons learned from previous projects.
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