Risk Management Software: Risk Identification
Risk identification is a creative process which has to be done by risk management personnel. It cannot be replaced by any software. Whether you choose to employ common checklists is up to you, but at the end of the day you will need to think through all your processes and identify the steps that can become subject to a threat. Doing risk identification by yourself will help you to get a feeling of the uncertainties in your business or project. You will learn what uncertainties may be combined to a single one or which uncertainty contains different risks and therefore should be divided into separate risk. The task of risk identification is crucial to success of your risk management. Spend time and thoughts on this.
Though we are used to speak of 'risk management', please do not forget about opportunities. Leaving out an opportunity is striking the business idea which is the art of realising opportunities.
When having identified risks you will need the software to collect the uncertainty information. You will enter the description of each uncertainty plus categorising it using the category structure setup for your uncertainty project. You may refer any uncertainty to your business or project breakdown structure and you may determine the timely occurrence of the uncertainty on the timeline.
Overview on Uncertainties
RiskDecision allows you to perform risk management the qualitative or the numerical (quantitative) way. An overview on all or filtered uncertainties is shown in form of a table. The Risk Factor (RF) shows the overall treat of probability and impact. It uses an additive calculation, i.e. counting both probability and impact in a scale of 0 to 5 adding up from 0 to 10. This is the qualitative table:
The numerical table shows probability in percent and impact in currency. The Risk Factor RF is Probability in % times Impact:
You can define a category structure in RiskDecision which will assist you in filtering specific data for reporting. Each uncertainty can be assigned to elements of these categories.
You can further define a breakdown structure applying to your project or business. The breakdown structure helps to assign an uncertainty to a specific work package.
Finally, you can define a timely assignment of the uncertainty. Often an uncertainty refers to a specific project or business phase.