RISK IDENTIFICATION TOOLS & TECHNIQUES

LEARNING CYCLE
-Identifying risk is the process of understanding what potential events might hurt or enhance a particular
project.
-Another consideration is the likelihood of advanced discovery
Risk identification tools and technique include:
1. BRAINSTORMING (less structured)
-is a technique by which group attempts to generate ideas or find a solution for a specific problem by
amassing ideas spontaneously and without judgement.
-an experienced facilitator should run the brainstorming session.
-identification of many risks, team must be available, highly creative, encourages teamwork and if not
adequately executed, it can lead to “chaos”
Brainstorming Process:
-Define the scope
-Get a facilitator
-Get a list of participants
-Conduct brainstorming sessions
-consolidate responses
-fill up the list with the identified risks
2. NOMINAL GROUP TECHNIQUE- (structured)
-used in problem solving sessions to encourage creative thinking
-individual brainstorming
-get the info in advance
-mix of the individual and group participation
-fast and effective
-lessens the “chaos” of brainstorming
-each member of the group writes down his/her ideas, which are then discussed and prioritized one by
one by the group.
3. Delphi Technique- (a group of experts)
-is used to derive a consensus among a panel of experts who make predictions about future
developments. (Interview SME’s)
- a facilitator uses a questionnaire to get ideas about important risks
-responses are summarized & recirculated to experts for further comment
-Helps reduce bias & having I person have undue influence on the outcome
-provides independent and anonymous input regarding future events
-used when there may be conflicts or when brainstorming is not recommended
-Used to get comments from competitors
-slow process
-uses repeated rounds of questioning and written responses and avoids the biasing effects possible in
oral methods, such as brainstorming
4. Interviews-
-is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or instant-messaging
discussions.
-interviewing people with similar project experience is an important tool for identifying potential risks
5. Checklist- (structured tools)
-can be developed based on historical information and knowledge that has been accumulated from
previous similar business and from other sources of information
6. SWOT Analysis-
-a method used for controlling areas of planning and risk and highlight areas of the project that could be
maximized to benefit of the whole project or individual areas where some competitive advantage may
be gained.
- it is used to evaluate particular activities of the project in order to optimize their potential as well as to
evaluate risks
-normally performed during the initial project start-up phase so that the elements of the analysis can
form the basis of the project plan
-also can be used later in the project
- (strengths, weaknesses, opportunities, and threats) can also be used during risk identification
-helps identify the broad negative and positive risks that apply to a project
7. CAUSE & EFFECT- (a.k.a FISHBONE/ISHIKAWA)
-Graphically illustrates the relationship between a given outcome and all the factors that influence this
outcome.
-specify the effect to be analysed. The effect can be positive (objectives) or negative (problems). Place it
in a box on the right side of the diagram
-List the major categories of the factors that influence the effect being studied.
-The “4 Ms” (Methods, Manpower, Materials, Machinery) or the:
-“4 Ps” (Policies, Procedures, People, Plant) are commonly used as a starting point
8. PAST PROJECT- (lesson learned from past

9. Nominall Group Technique (NGT)

-each individual silently writes their ideas on a piece of paper
-each idea is the written on a board or flip chart one at time
-in a round-robin fashion until each individual has listed all of his or her ideas
-the group then discusses and clarifies each of the ideas
-the group the discusses the ranking and priorities
-each individual ranks and prioritizes the ideas again
-the rankings and prioritizations are then summarized for the group

10. Risk ChecK

-Funding for the project has been secured
-Funding for the project is sufficient
-Funding for the project has been approved by senior management
-The project team has the requisite skills to complete the project
-The project has adequate manpower to complete the project
-The project charter and project plan have been approved by senior management or the project
sponsor
-The project’s goal is realistic and achievable
-The project’s schedule is realistic and achievable
-The project’s scope has been clearly defined
-Processes for scope changes have been clearly defined