Managing Risk is a key part of project management. In order to manage risks effectively it is essential to prioritize action. We suggest the following approach.
1. Identify the severity of each risk and give it a score between 1 and 10.
2. Assess the urgency of action and score 10 immediate to 1 not urgent.
3. Assess the financial impact of the risk and score 10 Major to 1 minor.
4. Calculate overall score = severity x urgency x cost
5. Use these scores to prioritize Action starting with the highest.
6. For each risk identify a mitigation which will minimise risk whilst allowing you to fix the root cause.
7. For each risk identify the root cause and an appropriate corrective action which should then be built into your overall plan.
8. Build all this into a spreadsheet to help track progress.
9. Review on a regular basis.
Need more help ? Contact me - chris@amberhill.biz
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