Risk Techniques Checklist

Decision tree

This is a branching diagram that shows possible decisions such as risk management actions, and then, for example, the cost of each branch.

Each branch may then divided, and divided again with further costs if options for lower level decisions.

Interviewing

It's easy to overlook this powerful technique in risk management. Go and talk to people with different interests in the project such as users, team members, project board members and stakeholders, and us them or risks they see in the project.

Ishikawa (fishbone) diagram

This diagram, named after its inventor, is also called a fishbone diagram because it looks like a fish with a spying, primary bones and then secondary bones. It is a 'cause and effect'diagram, but you can use it in projects by clicking a risk impact as an effect, such as overspending.

Then the primary bones are risk categories such as people risk, technical risk, business risks, and so on.

Using the secondary bones you then show the risks that you identify in each of the category areas. This technique works really well when used in a risk workshop.

PI Matrix

There are different names for this technique, but at its simplest it is a 5 x 5 agreed with probability (P) on one axis and impact (I) on the other.

You read each risk on a scale of 1 to 5 and write its reference number on the grid.

You can then monitor any movement as you review risks. The grid also indicates the need for action, especially for risks towards the top right of the great with high measures for both impact and probability.

Risk anatomy diagram

A simple but powerful diagram that you can use for mapping out the three elements of a risk, the threat or opportunity (sometimes referred to as the trigger and shown with an arrow), the risk itself (shown in a rectangle), and then the impact (shown in a circle).

You can use the diagram to think through risks by modeling things such as multiple triggers to a single risk, multiple impacts, chain reactions where the impact of one risk forms the trigger for another, and combined impacts where two risks occur at the same time.

Risk checklist

Simply a list of risks that can affect projects in your organization and project circumstances

Do not use its first though, or you will be so focused on the list that you fail to spot a new risk. Use other techniques first, then the checklists as a safety net to see if there is anything that you have missed.

If you spot a new risk that could affect future projects, add it to the risk checklist.

Risk workshop

This technique has two parts of advantages. You get together a group of people representing the different interests in the project. In a small to medium project you may include everyone who will be involved.

The idea here, is to brainstorm risks. The first advantage is that a risk that one person comes up with, sparks other thinking, and other people then come up with risks which would not have otherwise been spotted.

The second advantage is that everyone is now aware of the risks because they were there when the risk was first identified and talked about.

Risk proximity frame

They constantly changing diagram as you keep it up to date. The left hand side of the frame is 'today', and the X axis represents time into the future.

Use of different risks according to the severity, showing them in different sized circles. You can then see how soon the risks can affect the project, and how significant they are.

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