Tag Archives: risk avoidance

Risk Analysis

Business Analyst Techniques #2 Risk Analysis

Risk AnalysisRisk analysis or risk assessment is done to determine if the proposed project carries more risk than the organization is willing to bear. It helps in adjusting the cost and profit projections on the basis of the risks identified at any point. No project comes without risk and it’s totally unrealistic to think otherwise. The analysis activities to prepare the business case are incomplete until an initial risk assessment is performed. Project risk is defined as an uncertain event or condition which has impact at least on time, cost, scope or quality. Risk analysis includes the following processes:

  • Risk Identification
  • Risk Assessment
  • Risk Response Planning
  • Organizational Readiness Assessment
  • Risk Avoidance
  • Risk Rating

Risk Identification: The cause of risk should be described with its impact. The goal is to identify business, financial, technical and operational risks. The first thing we must do in risk identification is to recognize the areas of the project where the risks can occur. It basically includes scope of the project, cost and schedule decided for the project, change in customer requirements and resource management.

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