Risk analysis

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Risk analysis by Mind Map: Risk analysis

1. Definition

1.1. Proper risk analysis aids in the control of potential future occurrences that could impair the overall project. It is a proactive rather than a reactive procedure.

2. Risk Assesment

2.1. qualitative risk analysis :-It is the process of prioritizing risks for further analysis of project risk or action.

2.2. Quantitative risk analysis :-It is the procedure of numerically analyzing the effect of identified risks on overall project objectives.

3. strategic risks

3.1. Business risks :- Risks arise as a result of the board's choices on products or services that the company provides. They include risks related to developing and promoting those items or services.

3.2. Non-business risks :-Strategic risk levels are influenced by how the entire organization is positioned in respect to its environment. Competitors' activities will have an impact on product market risk levels. Technical advancements may cause production processes or goods to become obsolete quickly.

4. response to risk

4.1. Accept the Risk:-

4.1.1. Recognize the risk but determine that taking efforts to avoid or lessen the risk will be too expensive or time consuming. It is possible that the risk cannot be

4.2. Avoid the Risk

4.2.1. You may need to change the scope of the project, adjust the project plans, recruit additional resources, or use different technical solutions. Avoidance is expensive, yet it may be

4.3. Mitigate the Risk

4.3.1. To take action that will reduce the potential impact of a given risk by analyzing and considering other alternatives. mitigation measures offer the best of both worlds, but do come at a cost in terms of time and equipment. You can be ready for either scenario, but need to be prepared for both.

5. risk control

5.1. Risk control includes decision-making to reduce and/or accept risks. The amount of effort used for risk control should be proportional to the significance of the risk. Decision-makers might use different processes, including benefit-cost analysis, for understanding the optimal level of risk control. Risk reduction focuses on processes for mitigation or avoidance of quality risk when it exceeds a specified (acceptable) level. For some types of harm, even the best quality risk management practices might not entirely eliminate risk.

6. Manage risk:-

6.1. Prioritizing risks/threats should always be the first step in developing a risk management plan. You can accomplish this by employing a relatively universal universal scale.

6.2. Assess your liabilities and legal requirements to determine what forms of insurance you will need. Purchasing insurance helps you to transfer your risk to insurance firms for a modest cost.

6.3. Set lofty expectations for your staff and teach them to focus on quality over quantity. You will avoid the possibility of diminishing revenue as a result of high-pressure sales practices.

7. evaluate risk

7.1. Risk assessments examine the strength of evidence for all three critical issues. The robustness of the data set is crucial in conducting an effective risk assessment. Disclosing assumptions and legitimate sources of uncertainty will boost trust in this output. Some risk management methods use a relative risk measure to incorporate different levels of severity and likelihood.