How to Rank Programme Risks
Individually rank each risk identified according to its frequency/likelihood and its severity. Enter information into white cells. Shaded cells will calculate automatically. Step * – +ank the frequency/likelihood of a given risk from * to ! using these criteria& 4 = Very Likely , "lmost certain to occur over the life of the pro-ect or a * year period , whichever is shorter0 3 = Likely , 1ro)a)ly will occur during a *,year period 2 = Unlikely , 1ro)a)ly will !" occur during a *,year period # = Very Unlikely , "lmost certain !" to occur during a *,year period
Step 2 – +ank the severity of a given risk from * to ! using these criteria& 4 = Very Hig$ – ould prevent goals and o)-ectives from )eing achieved 3 = Hig$ – ould cause significant pro)lems or delays in o)-ectives )eing achieved 2 = Medi%m – ould ould cause relatively minor pro)lems pro)lems or delays in o)-ectives )eing achieved # = Low – ould pro)a)ly not affect pro-ect implementation
Step 3 – Compute the average frequency/likelihood and average severity ranking for each risk category. he risk assessment tool will calculate and display these averages automatically. Step ! – "dd the average frequency/likelihood and severity ranking for each risk category. he risk assessment tool will calculate and display these sums automatically. Step # – $etermine whether each risk category is high% medium% or low according to the following thresholds& &'( Hig$ Risk )red* – (ou should have a detailed mitigation action and perhaps consider modifying your goals and o)-ectives 4'+ Medi%m Risk )yellow* – (ou should have a clearly defined mitigation action #'3 Low Risk )green* – 4o mitigation action required or a very )asic action if you think it is necessary0
he risk assessment tool will determine and display whether each risk is high% medium or low automatically. 'igh risks categories will automatically turn cells red% medium risks will automatically turn yellow% and low risks will automatically turn green. How to develop Risk Mitigation Actions
5or risks that are essentially internal e.g. Capacity% 6eadership% 1artners0 you should focus on taking action to reduce the risk . 5or risks that are e7ternal to the pro-ect e.g. 1olitical% Economic0 your response will more likely )e to develop contingency plans and monitor the risks. (our overall risk mitigation strategy should )e simple% clear and managea)le with the resources availa)le.
Input SPECIFIC risks that your team identifies when discussing questions for consideration.
!verall Risk Assessment "ool Risk ,ategory-.%estions /or ,onsideration #* Partner )non'govern ment* a0 'as a full stakeholder analysis )een completed;
0denti/ied Risks )otes*
"n initial Stakeholder analysis has )een completed at the corporate level )ut not at the pro-ect level
)0 "re all of the necessary partners engaged in 6ack of proper engagement with 3rd the process; parties
idmac $irect 6a)or0
Risk Likeli$ood
Risk 1everity
Risk Ranking
4
3
7
4
3 Likelihood of Risk Occurring
4
4
3 = Likely – Pro'a'ly will occur during product lifecycle
c0 $o the partners completely support the vision% goals and o)-ectives of the processes;
5requent disagreements affect the overall outcome
4
2
d0 'ave strong governance structures or agreements )een developed for partner involvement and interaction;
Contract administration in place
3
3
e0 Is there a relia)le process in place to resolve 1artially. 1rocess followed )ut not disagreements )etween partners; documented
3
2
f0 Is the processes overly dependent on * or 2 key partners;
4
4
(es. Client 8 9: 1artner.
3
2
(es
1
3
)0 $o the governments or agencies involved have competing agendas;
(es. 5or e7ample% road pro-ects involve conflicts )etween different government authorities e.g. "shghal% ?ahramaa% etc.0
3
2
c0 $o all political partners completely support the vision% goals and o)-ectives of this processes;
1artially
3
2
d0 Is there a relia)le process in place to resolve 1artially differences )etween governments or government agencies;
3
2
2* Political )incl%ding government partners* a0 Is the political situation sta)le in each country or region that the processes spans;
3* conomic a0 Is the processes su)-ect to inflationary risk in (es. 1rocurement is affected )y any country where activities or fundraising takes inflation 8 import duty rates. place;
)0 Is the processes su)-ect to foreign e7change (es. risk in any country where activities or fundraising takes place;
4 = Very Likely – Almost certain to occur oer the life of the pro!ect "or a #$ year period% whicheer is shorter&
3
2
3
3
3
2
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5
5
Severity of Risk 4 = Very High – +ould preent goals and o'!ecties from 'eing achieed 3 = High – +ould cause significant pro'lems or delays in o'!ecties 'eing achieed
2 = Unlikely – Pro'a'ly will ()* occur during product lifecycle
2 = Mediu – +ould cause relatiely minor pro'lems or delays in o'!ecties 'eing achieed
1 = Unlikely – Almost certain ()* to occur during product lifecycle
1 = Lo! – +ould pro'a'ly not affect pro!ect implementation
Risk ,ategory-.%estions /or ,onsideration
0denti/ied Risks )otes*
c0 Is the processes su)-ect to interest rate risk in (es.
Risk Likeli$ood
Risk 1everity
3
2
1
3
(es
1
3
(es
1
4
c0 Is there an appropriate )anking and financial (es structure to distri)ute and control funding;
1
3
d0 Is the appropriate )asic infrastructure availa)le for processes personnel food% transportation% and other )asic services0;
(es
1
3
e0 Is a )asic communication infrastructure in place;
(es
1
2
4* 0n/rastr%ct%re a0 $oes the country or region have the appropriate infrastructure to carry out and support processes implementation;
)0 Is there an appropriate management and/or '+/recruitment structure in place that can )e leveraged to roll out the processes;
1
3
(es
1
3
(es
1
3
c0 Is there agreement )etween partners on the 4o targets% threats% and root causes or drivers of the threats;
2
3
+* "ec$nical a0 Is the technical )asis for all processes well understood;
)0 Is there a clear definition of processes success in technical terms;
2
3
(es
1
3
(es
1
3
c0 "re the necessary technical and management (es skills availa)le within other partners to implement the processes;
1
4
d0 Can the processes )e implemented in the timeline envisioned;
3
3
1
4
1
4
1
4
&* ,apacity a0 'as a realistic assessment )een done to quantify skills and sy stems capacity requirements for all key activities;
)0 "mong your core team% are the technical% management and leadership skills availa)le to fully implement the processes;
* inancial a0 'as a comprehensive financial model )een created that accurately reflects all costs for activities and assesses any funding gaps;
Sometimes
(es
)0 hat if funders/investors are not as interested $e)t ridden firm can impact growth in funding as e7pected;
Page 3 of 5
Risk Ranking
4
4
5
5
Risk ,ategory-.%estions /or ,onsideration
0denti/ied Risks )otes*
c0 Is funding significantly affected )y the other (es risks political sta)ility% partner disagreement% lack of infrastructure% etc0;
Risk Likeli$ood
Risk 1everity
1
4
1
4
(es
1
4
)0 Is there a strong leader in place that esta)lishes clear accounta)ility for the success of the processes;
(es
1
4
c0 "re there clear indicators that can )e used to measure progress and success;
(es
1
4
(* Leaders$ip-Management a0 Is there a working governance structure in place to manage the processes;
5* !t$er a0 )0 c0 #6* !t$er a0 )0 c0
4il 4il 4il 4il 4il 4il
1
1
1
1
1 1
1 1
1
1
1 1
1 1
1
1
Page 4 of 5
Risk Ranking
5
2
2
Risk 1%mmary 7 Mitigation "ool Insert rows as required to add risks within a category or separate risk mitigation strategies assigned to multiple responsi)le parties. Risk ,ategory
Risk 8escription
1core Ranking
Risk Mitigation 1trategy
Responsi9le Party
#* Partner )non'government*
"n initial Stakeholder analysis has )een completed at the corporate level )ut not at the pro-ect level6ack of proper engagement with 3rd parties idmac $irect 6a)or05requent disagreements affect the overall outcomeContract administration in place1artially. 1rocess followed )ut not documented(es. Client 8 9: 1artner.
@
H
*. Conduct Stakeholder "nalysis at 1ro-ect level for future pro-ects 2. Share 8 discuss with Client 8 9: partner a)out the same
>anagement 8 =perations
2* Political )incl%ding government partners*
(es (es. 5or e7ample% road pro-ects involve conflicts )etween different government authorities e.g. "shghal% ?ahramaa% etc.01artially1artially
#
M
*. $evelop a)ility to influence key policymakers in the government
E7ecutive
3* conomic
(es. 1rocurement is affected )y inflation 8 import duty rates.(es.(es.
#
M
*. $evelop efficient costing s trategies with )uffer pricing 2. >aintain good levels of credit rating for availing )etter interest rates
1rocurement
4* 0n/rastr%ct%re
(es(es(es(es(es (es(es4o
&* ,apacity
(es(es(esSometimes
* inancial
(es$e)t ridden firm can impact growth(es
! ! # #
M M M M
4il
+* "ec$nical
(* Leaders$ip-Management
(es(es(es
# 2 2 !
M L L M
4il
5* !t$er #6* !t$er Average Ranking
Page5 of 5
4il 4il *. $efine long,term 8 short,term goals with proper forecasting 2. Identify 8 develop measures to lure investors 4il 4il
E7ecutive
