To conduct a risk analysis, it is better to assemble a team of competent employees who understand what negative events the company may face. Step 2: Assess the risks When all possible negative events are collected, it is necessary to understand which of them are the most dangerous. For this, different risk assessment methods and tools are used: heat matrix, SWOT analysis, Descartes square. Thermal Risk Matrix The matrix can be used to assess the criticality and probability of a risk.
To do this, the probability of the risk occurring
Y axis, and how much it affects the result or project is indicated on the X axis. Then the matrix cells are colored in different colors, which helps to visually highlight the most and least critical events. For example, a risk assessment matrix or map can be presented as follows: The matrix content shows that each event can have a different level of risk.
Threats colored red and orange are the most dangerous
Measures must be taken to avoid them. Yellow risk areas are poland phone number library moderately dangerous. They usually use the threat mitigation strategy. Green ones are practically safe, but such risks also need to be addressed. For example, use the strategy of transferring and eliminating negative factors. Descartes square To determine the risk levels, Descartes square is used. This tool allows you to evaluate all the negative and positive consequences of the threat. It can be used to thoroughly analyze each negative event.
Let’s say the manager demands to assess
How critical the quality reduction of the product is for the company. To do this, we answer the questions sequentially and fill in Descartes’ square: What happens if the event happens? If the quality how to write a labor report of the product deteriorates, we may lose some customers, get negative reviews and ruin our reputation . What happens if the event does not happen? If the quality of the product does not deteriorate, our customers will be happy, we will receive positive feedback and our reputation will not be damaged. We will be able to get ahead of our competitors.
What won’t happen if the event happens?
If the quality of the product doesn’t deteriorate, we won’t invest money in tg data restoring our reputation and returning some customers . What won’t happen if the event doesn’t happen? If the quality of the product doesn’t deteriorate, we won’t upgrade production. We conclude: from the description and answers we learned that this risk has a significant impact on the company. SWOT analysis The level of danger of each risk is also determined using SWOT analysis.