Risk Management
Brainstorm everybody's worries about the project: what if this or what if that. Again, no poo-pooing anybody's worries; just get them up on a poster sheet.
Now ask these questions about each worry:
Next, make a chart for each worry with the three categories and a H (high) or L (low) value.
- impact: if it happens, how serious would it be?
- probability: how likely will it be that it happens?
- lack of forewarning: (the higher the surprise, the larger the risk)
impact probability lack of forewarning overall worry #1 L H L L worry #2 H H L H Each row must have each cell filled out.
You look at the value of impact, probability, and lack of forewarning and then gut-react what the average of that row is.
Any "overall" Lows you come up with: don't be concerned about that worry. No action needs to be taken. For the rows with Ms and especially Hs in their overall rating you decide how to avoid that worry. Write lists on another sheet of all the things you can do to avoid that event.
On another sheet write all the things you can do if it happens anyway (contingency plans). For the worries with an H in the Lack of Forewarning category, think about triggers: what kind of trigger can you install to give you a better warning that such a thing might happen? A good trigger must function 24/7, must be appropriate to the event (not cause an over-reaction or under-reaction to the event), and be at the appropriate time -- neither too early nor too late.
And that's Risk Management.