How do you analyze business risks?

2 Identify the sources

The next step in analyzing business risks is to identify the sources of uncertainty that can affect your scope. These sources can be internal or external, positive or negative, and can originate from various factors such as market, technology, legal, social, environmental, or operational. You can use techniques such as brainstorming, interviews, surveys, checklists, or SWOT analysis to generate a list of potential risks that can influence your scope. You can also use tools such as risk register, risk breakdown structure, or risk categories to organize and document the identified risks.

3 Assess the impacts

The third step in analyzing business risks is to assess the impacts of the identified risks on your scope. This means estimating the probability and severity of each risk, as well as the potential benefits or opportunities that can arise from them. By assessing the impacts, you can determine the level of risk exposure and prioritize the risks that need more attention or action. You can use techniques such as qualitative or quantitative analysis, risk matrix, or risk scoring to evaluate and rank the risks based on their impacts.

4 Develop the responses

The final step in analyzing business risks is to develop the responses to the prioritized risks. This means defining the strategies and actions that can prevent, reduce, transfer, accept, or exploit the risks, as well as the roles and responsibilities, resources, and timelines for implementing them. By developing the responses, you can mitigate the negative effects and enhance the positive outcomes of the risks on your scope. You can use techniques such as risk response planning, contingency planning, or risk monitoring and control to formulate and execute the responses.