It's the first step in the risk management process, which is designed to help companies understand and plan for potential risks. Some examples of risks are thefts, business crises, accidents, lawsuits or data breaches. When you identify risks, look for events that may prevent a project from achieving its objective. Take some time to verify that each risk corresponds to an element of your WBS and that you have considered each element of the WBS from the point of view of identifying the risk.
Risk management is the process of identifying, tracking and managing potential risks that may affect the overall health and reputation of a company. Risk identification is an effort to discover threats and opportunities that may affect a project, its viability, or its management plan through the application of risk identification techniques. Therefore, when you have a shared vision of risk management, you can incorporate risk identification into all project activities. Identifying project risks is not just for companies, but a practice that should occupy a central place in the modus operandi of any company.
Without leadership participation, adequate stakeholder participation, and a disciplined approach to identifying and managing risks, a project will carry a greater risk of failure. This is a checklist to help you keep track of all the inputs you need to fully understand your project risks. The last step, the completion of the statement, groups the findings into a series of diagrams that cover risk areas, causes and impacts. As with a project within a project, the risk identification lifecycle is a process that includes the key elements of an overall risk management plan.
The lesson here is to approach risk from the beginning of a project and to let what you learn serve as a basis for decision-making regarding the scope, process and allocation of resources. Unless you're an organization from an entirely new industry, those who came before you can learn a lot about how to identify risks. This qualitative risk analysis activity helps project managers collect data to determine how much data is available, the quality, reliability, and integrity of the data, and how well they understand the risk. Risk identification provides information for a probability and impact matrix, a qualitative risk analysis tool also known as a risk assessment matrix.