Holistic Risk Assessment

8/14/2019 Holistic Risk Assessment

1/13

ID Risk Event Risk Category Probability Risk Response

1 Commerical

1.1 Competing Projects

1.2 Competitive Pressure

1.3 Market Growth

2 General Contracts

2.1

2.2

2.3

2.4 Insurance, idemnities

2.5 Legally binding

2.6 Prompt payment

2.7

2.8Variations

3

3.1

3.2

3.3

3.4

Detailed Description ofPotential Risk (What can gowrong?)

ProbabiltyScore (P)

ImpactScore( C)

Project ImpactArea

Total Risk Factor ScoreRF=P+C-(P*C)

Changes to standardlanguage

Conditions foracceptance

General Conditions

(Are we aware ofcontents andimplications?)

Specificationrequirements, quality

Contracts ThirdParty

Abilty to meetcontractcommitments

Speed of response toprevious issues

Creditworthiness,willingness to pay

Expereience withorganization


2/13

3.5

3.6 Future Business

4 Economic4.1 Demand Growth

4.2 Demographic Trends

4.3 Discount Rates

5 Environment

5.1

5.2Dust

5.3

5.4

5.5Noise

5.6Recycling

6 Financial

6.1 Debt: equity ratios

6.2

6.3 Financing costs

6.4 Funding sources

6.5 Investment conditions

6.6

7 Industrial Relations

7.1 Award suitability

Failure to pay or latepayments

Caontamination(land, air, water)

HazardousChemicals and

Materials

Legislative andregulatory constraints

Funding andownership

Working capitalrequirements,liquidity


3/13

7.2

7.3 Strength of unions

7.4 Potential of strike

7.5

8

8.1

8.2

8.38.4 Quality level not met

8.5

8.6 Timetable not met

9 Legal/regulatory

9.1

9.2 Unclear contract

9.3 UL standards

9.4 ANSI standards

9.5

9.6 IP

9.7Trademark

10

10.1Mature

10.2New

10.3 R&D

Labor laws,regulations

Strike leading todelays

UnderstandingRequirements

Misunderstanding ofuser expectations

Poor technicialknowledge in newarea

Quality and detail of

specification

Requirements notunderstood

Inadequate termsand conditions

Regulatorycompliance

Product Life cyclestage


4/13

11 Resources

11.1

11.2

11.3

11.4

11.5

12 Safety

12.1 Contract Safety12.2 Equipment Failure

12.3 Ergonomics

12.4

12.5

13 Security13.1 IT database

14 Skills

14.1

14.2

14.3

Additional capitalinvestment needed

Availability of criticalcomponents ormaterial

Availability of criticalequipment

Availability of funds(internal/external)

New equipmentrequired

Legalrequirements/localregulations

Safety guidelinesissued in orreferenced in contract

Availabity of skilledstaff

Poorly defined skillrequirements

Loss of critical skills(to illnes, competitor)


5/13


6/13

16.20

16.21

16.22

16.23

16.24 Reliabilty of supplier

16.25

16.26 Timeliness

16.27

16.28

17 Technology

17.1

17.2 Failure rates

17.3

17.4 Maintenance

17.5

17.6

17.7 Obsoloscence

17.8

Limited number ofsuppliers orproducers

Overseas vs localsupplier

Overseas vs localsubcontractor

Quality of goods andservices provided

Stabilty of jointventures,partnerships

Transferabiltiy ofwarranties andguarantees

Warranty of goodsand servicesprovided

Availabiilty of keycomponents

Lack of technicalknowledge

Need for furtherdevelopment

New or non standardperformance orquality requirements

Relability, availability,

maintainability


7/13

17.9

17.10

17.11

17.12

17.13

18 Transport

18.1

18.2Availability

18.3Duration

18.4 Local conditions

18.5 Product demensions

18.6

18.7 Special Equipment

Specificationincomplete ormisleading

Technicial standards

or regulations change

Technicial standardsor regulations unclear

Technologicalchange

Technology notavailable

Acceptable forms oftransport

Road, bridge, watercontraints


8/13

ID Risk Event Probability Risk Response

20 Communications

20.1Channel

20.2Reliability

20.3Time Zone

21 Culture and Customs

21.1 Agents Fees

21.2 Agents Expectations

21.3 Foreign Business Culture

21.4 Hours of work

21.5 Miscommunication

21.6 Quality culture

22 Language

22.1

22.2

22.3 Use of Interpreters

23 Legal/Regulatory

23.1

23.2 Imoprt/Export regulations

24 Foreign Manf Location

24.1

24.2 Material availability

24.3

24.4 Voltage compability

24.5 Weather, climate

Detailed Description ofPotential Risk (What cango wrong?)

RiskCategory

ProbabiltyScore (P)

ImpactScore( C)

ProjectImpactArea

Total RiskFactor ScoreRF=P+C-(P*C)

Accuracy of technicaltranslation

Channels ofCommunication

Unfamiliar legalenvironment

Equipment (will itoperate?)

Proximity to criticallocations


9/13

25 Foreign Manf Skills

25.1

25.2

25.3

26 Political

26.1

26.2 Stability (unrest, riots, etc)

27 Religion

27.1

27.2 Prayer periods

27.3 Births, deaths, marriages

28 Security

28.1

28.2 Political situation

28.3 Site Security

29 Staffing

29.1

29.2 Stability of employment

Skills do not fit workbreakdown

Skills not available at thissite

Suitable personnel to besourced from elsewhere

Relationship with homecountry

Holy Days and festiveseasons

National and communityacceptance of foreigners

Domestic visits andcommunications


10/13

ID Risk Event Probability Risk Response

30 Tooling

30.1Quality

30.2Consistency

30.3Capacity

31 Components31.1Lamps

31.2Ballast

31.3Caps

31.4Housings

31.5Wiring

31.6Sockets

31.7Optics

32 Process

32.1

32.2

32.3

32.4 Quality level not met

32.5


32.7

SAMPLE ONLY WILLVARY ACCORDINGTO PRODUCT LINE

Detailed Description of PotentialRisk (What can go wrong?)

RiskCategory

ProbabiltyScore (P)

ImpactScore( C)

ProjectImpactArea

Total

RiskFactorScoreRF=P+C-(P*C)

Human ResourceCapacity

Poor technicialknowledge in new area

Quality and detail ofspecification

Requirements notunderstood

Availabity of skilled

staff


11/13

32.8

32.9

32.10 Recruitment

32.11Staff Turnover

32.12Training internal

33 Technical

33.1 New product/technolgy

33.2

33.3 Maintenance

33.4

33.5

Poorly defined skillrequirements

Loss of critical skills (toillnes, competitor)

Lack of technicalknowledge

Need for further

developmentNew or non standardperformance or qualityrequirements


12/13

ID Risk Event Probability Risk Respons

40 Skills

40.1 Availabity of skilled staff

40.2 Poorly defined skill requirements

40.3

40.4 Recruitment

40.5 Staff Turnover

40.6 Training internal

40.7 Training of contractors/suppliers

41 Product Life Cycle Stage

41.1Mature

41.2New41.3 R&D

42 Legal/regulatory

42.1 Inadequate terms and conditions

42.2 Unclear contract

42.3 UL standards

42.4 ANSI standards

42.5 Regulatory compliance

42.6 IP

SAMPLE ONLY WILL VARYACCORDING TO PRODUCTLINE

Detailed Description ofPotential Risk (What can gowrong?)

RiskCategory

Probabilty Score(P)

ImpactScore( C)

ProjectImpactArea

Total RiskFactor ScoreRF=P+C-(P*C)

Loss of critical skills (to illnes,competitor)


13/13

42.7Trademark

43 Understanding Requirements

43.1

43.2

43.3 Quality and detail of specification

43.4 Quality level not met

43.5 Requirements not understood


44 Commerical

44.1 Competing Projects

44.2 Competitive Pressure44.3 Market Growth

Misunderstanding of userexpectations

Poor technicial knowledge in newarea

Documents

Holistic Risk Assessment