**6.2 Risk assessment**

*Perspectives on Risk, Assessment and Management Paradigms*

**188**

**Table 4.**

**Parameter Methodology**

*6.1.1 Risk identification techniques*

the first step to a successful risk management.

• Brainstorming • Delhi technique • Checklist analysis • Cause and effect diagram

Tools and techniques for risk identification are presented in **Table 4**.

• Questionnaires • SWOT analysis • Expert judgement

A structured review of project documentation, study of history of execution of similar projects and quality of plans as well as the consistency between those plans and project requirements/ assumptions would be an indicator of risks in the project

identified, it becomes easy to take actions and have control over them. Risk management will be more effective if the source of the risks have been identified and allocated before any problems occur. The main purpose of risk management is that the stakeholders should prepare for potential problems that can occur unexpectedly during the course of a project. Risk management will not only facilitate anticipating problems in advance, but also preparing oneself for the potential problems that may occur unexpectedly. Handling potential threats is not only a way to minimise the losses within a project, but also a way to transform risks into opportunities which can lead to economic and financial profitability. The purpose of identifying risks is to obtain a list of risks which has got the potential to have a cascading effect on the progress of project and different techniques are applied for managing/mitigating the same. In order to find all potential risks which might impact a specific project, different techniques are applied. The project team should use a method they are familiar with so that the exercise will be effective. Effective identification of risks is

Documentation reviews

**Figure 1.**

*Risk management process.*

techniques

Information gathering

*Identification of risks: tools and techniques.*

Risk assessment is the second stage in the risk management process where collated data is analysed for potential risks. Risk assessment is described as short listing of risks starting from low impact highest impact on the project, out of all threats mentioned in the identification phase. Risk assessment consists of qualitative risk assessment and qualitative risk assessment.
