Risk Processes

The risk management process is the “doing” part of risk, where people communicate with each other to find out which risks the venture faces. Very often the project teams are too close to day to day work and may miss risks and opportunities until it’s too late. We act as neutral facilitators to help you identify your risks. We also guide you and your team or suppliers through the basics of processing risk.

Risk Process FlowchartDifferent industries have different ways of managing and reporting risk; however the core principles are the same and follow a very simple sequence which is:

  • List all reasonable risks (or data)
  • Analyse and sort the risks in order of importance.
  • Decide which risks need treating and how.
  • Keep an eye on the main risks.
  • Keep decision makers informed of progress.



We use various tools to process risks in different industries.  The tools are complex in name, but simple in outcome.  These include:

  • Risk identification techniques
  • Assumptions and Constraints analysis
  • Check lists
  • Prompt lists
  • Brainstorming
  • Interviews
  • Delphi Techniques


  • Qualitative risk assessment techniques


  • Probability Assessment
  • Impact assessment
  • Risk breakdown structure
  • Probability-impact Graphs (PIG)
  • Risk impact windows and bubble diagrams
  • Risk register


  • Quantitative risk assessment techniques


  • Probability distribution functions and three point estimate
  • First pass (minimalist) quantitative models
  • Monte Carlo Analysis
  • Decision trees
  • Sensitivity analysis


  • Generic Risk Treatment Options


  • Avoidance: – Withdraw; do not enter market; cease activity.
  • Defer: – Wait and see, defer decisions and actions.
  • Reduce: – Improve prevention and control measures; target risks and reduce them ALARP
  • Retain: – carry the risk alone
  • Transfer: – pay someone to carry the risk (e.g. External Insurance paid for by premiums)
  • Share:- Joint ventures with other organisations
  • Limitation – Limit scale or scope of presence or activities
  • Mitigation – Damage limitation