Risk Identification: Process & Analysis

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  • 0:04 Planning Ahead
  • 0:34 Risk Identification Process
  • 2:07 SWOT Analysis
  • 2:44 Risk Identification Procedures
  • 3:28 Lesson Summary
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Lesson Transcript
Instructor: Olga Bugajenko

Olga is a registered PRINCE2 Practitioner and has a master's degree in project management.

In this lesson, you'll learn the steps of the risk identification process, along with SWOT analysis and other procedures that will help you to identify potential project risks.

Planning Ahead

Imagine preparing for a road trip across several states. Before you hit the road, you make some preparations: study the map, make note of any planned road closures on your route, and check the weather forecast for any forest fire alerts or heavy rain. Similarly, as a project manager, you need to be aware of possible events that will have an impact on your project. To achieve this, you conduct risk identification before you embark on a project. This is what we're going to look at with more detail in this lesson. Let's first take a look at the risk identification process.

Risk Identification Process

Risk identification is a process for identifying and recording potential project risks that can affect the project delivery. This step is crucial for efficient risk management throughout the project. The outputs of the risk identification are used as an input for risk analysis, and they reduce a project manager's uncertainty. It's an iterative process, meaning it goes through phases or steps, that needs to be continuously repeated throughout the duration of a project. The process needs to be rigorous to make sure that all possible risks are identified.

An effective risk identification process should include the following steps:

  1. Creating a systematic process: The risk identification process should begin with project objectives and success factors.
  2. Gathering information from various sources: Reliable and high-quality information is essential for effective risk management.
  3. Applying risk identification tools and techniques: The choice of the best suitable techniques will depend on the types of risks and activities, as well as organizational maturity.
  4. Documenting the risks: Identified risks should be documented in a risk register and a risk breakdown structure, along with their causes and consequences.
  5. Documenting the risk identification process: To improve and ease the risk identification process for future projects, the approach, participants, and scope of the process should be recorded.
  6. Assessing the process' effectiveness: To improve it for future use, the effectiveness of the chosen process should be critically assessed after the project is completed.

SWOT Analysis

A useful tool for systematic risk identification is SWOT analysis. It consists of four elements:

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