Risk Management Techniques

Risk Management Techniques

Risk Management Techniques Jonathan Poland

Risk management is the process of identifying, assessing, and prioritizing risks in order to minimize their potential impact on an organization. It is an essential element of effective business planning and decision making, as it helps organizations to identify and mitigate potential negative consequences that could arise from their operations or activities. The following are common risk management techniques and considerations.

Risk Identification
Risk identification involves a creative element as it is essentially a process of imagining the future. It is also approached using analysis and systems thinking.

  • Known Unknowns
  • Reference Class Forecasting
  • Risk Intelligence
  • Risk Register
  • Systems Thinking
  • Unintended Consequences

Risk Analysis
Modeling and measuring risk.

  • Acceptable Risk
  • Cone Of Uncertainty
  • Extreme Value Theory
  • Moment Of Risk
  • Risk Capacity
  • Risk Estimates
  • Risk Evaluation
  • Risk Exposure
  • Risk Impact
  • Risk Matrix
  • Risk Probability
  • Risk Profile
  • Risk Tolerance
  • Risk Triggers
  • Risk-Reward Ratio
  • Uncertainty

Treatments
At its core, risk management is a process of treating risks. The following are types of risk treatment.

  • Antifragile
  • Resilience
  • Risk Acceptance
  • Risk Contingency
  • Risk Control
  • Risk Mitigation
  • Risk Monitoring
  • Risk Prevention
  • Risk Reduction
  • Risk Response
  • Risk Sharing

Strategies & Techniques
Techniques that go beyond the regular process of identifying and treating risk.

  • Business As Usual
  • Calculated Risk
  • Fail Well
  • Failure Is Not An Option
  • Resilience
  • Risk Communication
  • Risk Culture
  • Sanity Check

Special Practices
Variations of risk management for special categories of risk.

  • Contingency Planning
  • Disaster Preparedness
  • Dread Risks
  • Enterprise Risk Management
  • Innovation Risk Management
  • Positive Risk
  • Project Risk
  • Upside Risk

Plan
Pulling everything together as a risk management plan.

  • Contingency Plan
  • Risk Management Plan

Risks
Types of risk.

  • Business Risks
  • Competition
  • Compliance
  • Economic Risk
  • Financial Risk
  • Innovation Risk
  • Investing Risk
  • Political Risk
  • Positive Risk
  • Reputational Risk
  • Resource Risk
  • Seasonal Risk
  • Strategy Risk
  • Tactical Risk
  • Technology Risk

Failures & Challenges
Common challenges and patterns of risk management failure.

  • Cascading Failure
  • Failure Of Imagination
  • Residual Risk
  • Risk Awareness
  • Secondary Risk
  • Unknown Risks
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