Identification of risks ascertains the risks with the potential of having effect on project as well as documenting the characteristics of risk. It begins after plan of risk management is constructed and continues through out the execution of project. It involves the identification of events or items that may have significant negative effect on a project. Identification of risk may be done through checklists, project participant’s reports, and comparison of historical data as well as through the contingency planning.
Two criteria can be used in the process of identifying project risks that are not originally identified and include the analysis of risk as well as the prioritization of risk. Risk analysis employs cost risk analysis, decision analysis, schedule analysis, reliability analysis as well as other similar models and techniques in analyzing the identified risks. There are several methods that can be used in this analysis and one of them includes brain storming.
Brainstorming may be important in identifying risks and especially those which had not been identified before since risks are shared instantly among the members the moment they notice them in the project. Brain storming can further bring a lot of results in very short time and thus the members in a project can bring out risks, which had not been discussed or identified before and decide on ideas and ways of solving them.
Prioritization of risk employs quantification of risk as well as risk exposure and even using decision mechanisms that is statistically based. This process may involve the use of consulting experts who may have independent view in several fields that may involve risk and also identify risks which may not have been identified before. The advantage of using consulting experts is because they have knowledge and experience which is not in a certain company and they can identify risks that may have not been identified before.