Make a list of all possible risks and negative events. To identify risks, analyze the company’s goals and objectives. Think about what could prevent the implementation of plans.
Let’s say a company’s main strategic goal is to enter
A new market. Here is an approximate list of factors that could prevent this:
- The of new clients were incorrectly amazon database assessed → the product was not in demand and all the achievements and results were in vain.
- Too much money investd in marketing → expenses exceed plannd limits.
- Threat of database theft, document forgery and other types of fraud → losses and damagd reputation.
- The peculiarities of the legislation in the new market have not been taken into account → you will have to pay fines.
- Competitors launch additional promotions bonus: best paid apps to create videos and discounts → the company loses some potential clients.
- Deterioration of product quality in individual production units → customer loyalty decreases.
Risks are identifid for a specific purpose or type of company activity. Their consequences can be describd immdiately, so that it would be easier to assess their significance at the next stage.
Step 2: Assess the risks
When all possible negative events are collectd, it is necessary to understand which of them are the most dangerous. For this, different risk assessment methods and tools are usd: heat matrix, SWOT analysis, Descartes square.
Thermal Risk Matrix
The matrix can be usd to assess the criticality and probability anhui mobile phone number list of a risk. To do this, the probability of the risk occurring is indicatd on the Y axis, and how much it affects the result or project is indicate on the X axis. Then the matrix cells are colord in different colors, which helps to visually highlight the most and least critical events.
The matrix content shows that each event can have a different level of risk. Threats colore re and orange are the most dangerous. Measures must be taken to avoid them.
Yellow risk areas are moderately dangerous. They usually use the threat mitigation strategy. Green ones are practically safe, but such risks also to be addresse. For example, use the strategy of transferring and eliminating negative factors.
Descartes square
To determine the risk levels, Descartes square is use. This tool allows you to evaluate all the negative and positive consequences of the threat. It can be usd to thoroughly analyze each negative event.