Risk assessment refers to the overall process of risk identification, risk analysis and risk evaluation; in the scope of the Risk Management Planning Process. Risk identification generates a list of the risks that may have an impact on the project and create uncertainty about whether or not it will achieve or exceed its objectives.
Risk analysis is the systematic use of available information to develop an understanding of the risk. Risk evaluation is the process of comparing the estimated level of risk against risk criteria to determine the significance of the risk. Applying this process helps a project team make informed decisions about how to take action towards controlling/managing risks.
Applying your understanding of the stages of the Risk Assessment Process, how do you believe you have applied these steps in order to make informed decisions in your personal or professional life?
In your response, consider the following:
- Is there a conscious (or subconscious) process you explore when evaluating your options and how they may impact your desired outcome? Ex. You write down pro’s & con’s for a potential decision.
- What information do you use when ‘weighing your options’? Ex. Historical results/outcomes, feedback from a trusted source, etc.
- What “criteria” do you use to decide what’s MOST important to you when making your decision? Ex. Your personal morals, company policy, the opinion of others, etc.