BM.17 Evaluate the risks

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OVERVIEW

The aim of this activity is to capture the risks of implementing each of the business model concepts in a systematic manner and suggest how the risks could be managed.

INPUT

• Complete business model concepts, from the activity BM.4 Generate business model concepts at the big picture level.

• Data from In-Depth Assessment, from the activity BM.2 Gather additional data on the business model, and the activity: BM.3 Gather additional data on operational performance.

OUTPUT

An assessment of the implementation risks of the business model concepts, used in the activity BM.18 Integrate all the evaluations and make the final selection.

 

TEMPLATE

HOW TO GO ABOUT IT

Preparation

1.

Identify a group of insightful and experienced people from the company, who have prior experience of projects within the company, both from a technology and a commercial viewpoint.

2.

Together with the group, gather a gross list of risks connected to the project upon which you are working. This list can be generated from a combination of sources, such as prior experience, own scepticism, or the result of a structured brainstorm.

Applying the Risk Register template

3.

Take the Risk Register template and begin filling in the fields – one row per identified risk. An explanation of each field in the template is provided below and is accompanied by an example.

  • Risk code: This simply helps the project manager to keep track of each risk and creates a reference to check performance against.
  • Risk name: The risk is described in this field – only one risk per entry.
  • Risk category: A category list can be defined, so as to facilitate an easy organization of the risks for the company. The categories could relate to the product life cycle, company departments, or a complete other set of categories.
  • Probability (1-3): Enter a simple score, showing 1 for a low likelihood of the risk materializing into an actual problem, 3 for a high likelihood.
  • Impact (1-3): Evaluate the potential negative impact on the project and/or company, from 1 to low negative impact to 3, for high negative impact.
  • Risk score: Multiply the probability score with the impact score, to attain a risk score. This score should help the company to prioritize their efforts.
  • Mitigation: Write here a consideration of how which measures could (and probably will) be taken to stop the risk from materializing.
  • Contingency: Prepare for worst-case by preparing a contingency plan, in case the risk does manifest itself as an actual problem.
  • Action date: Record when it is decided to take action
  • Action by: Record who is responsible for mitigating each risk.

Tips & Tricks

CONSIDER BUSINESS AS USUAL RISKS

A good starting point for such a brainstorming activity is to review the risks the company will face if it continues with the current business model. This can be a useful reminder for senior management of the drivers for change.

CONSIDER GENDER DISCRIMINATION RISKS

Failure to take action to improve gender equality and eliminate gender discrimination is a business risk that is often overlooked but can have important consequences including a disenfranchised workforce and even legal action against the company in some cases.

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