The Missing Link – Risk Identification
All risk management standards, guides and process descriptions note that risk identification is a key component of a robust risk management framework. Further, an effective risk identification process should identify all types of risks from all sources across the entire scope of the program/enterprise activities. However, no document or solution provides sufficient guidance for identifying a comprehensive set of risks – a risk management baseline. Further, risk identification as it is practiced today is a subjective, ad hoc, non-comprehensive and non-repeatable process resulting in continuing failures and overruns in all types of programs.
A large analysis of hundreds of programs, their risks and outcomes was performed to address this shortcoming. A common set of risks emerged from this study, called the Risk Identification Analysis. This analysis, its conclusions, and the tool developed from those conclusions, Program Risk ID, are discussed in this paper.