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Risk Assessment - Business...a Flowchart
Business. Risk Assessment
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High-Level Project Risk Assessment
Make Your Own Flowchart 2012. All Rights Reserved.

Does the project at hand create a tangible, physical deliverable through a technical development process?


Would you like a deeply technical project assessment with a detailed focus on technology?

RISK FRAMEWORK: General, simple project overview.

Your project creates an intangible deliverable where the physical progress and result is not immediately seen throughout the project.

Here we will break down Technology into three parts and assign them three different values. In addition, a project Scale factor will be involved. The Index is then calculated as follows:
  • Index = (Technology + Architecture + System) x Scale.

  • Rate the following, Technology, Marketing, and Manufacturing, either Trivial (small) or Significant (Large) regarding change required during the project. Assess conservatively, if you believe the project falls somewhere in between, always choose Significant (large).


    Technology is defined as new, custom developments unique to this project. Architecture refers to high-level functional components and external interfaces. System is the internal software and hardware which will be used in the project.

    For Technology, if the project uses only well understood methods and skills familiar to those involved in the project, assume Trivial. If new skills and technology is required to be involved on multiple levels of the project, assume Significant.

    From your rating results of Technology, Structure, and Size, locate where your project falls under the Risk Assessment Grid.

    Rate Technology either Low or High, depending on the experiences using the required technology involved in the project and whether the technology is well established in uses similar to the current project. Assess conservatively, and if the project falls in between Low and High, assume High.
    Assign Technology, Architecture, and System a value between 0 and 5 according to the following guidelines:
  • 0-Only existing technology required.
  • 1-Minor extensions to existing technology needed in a few ares.
  • 2-Significant extensions to existing technology needed in a few areas.
  • 3-Almost certain possible, but innovation needed in some areas.
  • 4-Probably feasible, but innovation required in many areas.
  • 5-Completely new, technological feasibility in doubt.

  • For Marketing, if the project deliverable to be used by someone, or a class of users, that is well known and understood, assume Trivial. Otherwise, assume Significant.

    Low Risk Assessment:
  • A-LOW Technology, HIGH Structure, SMALL Size.
  • B-LOW Technology, HIGH Structure, LARGE Size.
  • C-LOW Technology, LOW Structure, SMALL Size

  • Rate Structure either Low or High. A project base with a solid, formal line of specifications, project sponsorship, and proper organizational practices would be High Structure. Assume Low Structure if unknowns are prevalent in staffing, responsibilities, overall infrastructure, and objectives or decisions.
    Scale is assigned a value based on all internal and external full-time contributors expected to be on the project as follows:
  • 0.8-Up to 12 people.
  • 2.4-13 to 40 people.
  • 4.3-41 to 100 people.
  • 6.6-More than 100 people.

  • For Manufacturing, consider what is required to provide the intended user with your project deliverable. If unresolved processes or changes in manufacturing are involved or expected, assume Significant, otherwise, assume Trivial.

    Medium Risk Assessment:
  • D-LOW Technology, LOW Structure, LARGE Size.
  • E-HIGH Technology, HIGH Structure, SMALL Size.
  • F-HIGH Technology, HIGH Structure, LARGE Size.

  • Rate Size as either Small or Large, depending on the project leaders success in leading in the past. If the project is 20% larger in team size, time of completion, and overall budget, assess as Large. If the project is 20% larger in one or no categories, assess as Small.
    The calculation for the Index will yield a result between 0 and 99.
  • Projects below 20 are low-risk.
  • Projects between 20 and 40 are medium risk and are likely to see trouble somewhere along their completion.
  • Projects above 40 are high risk, and if ever completed, may not do so without excessively surpassing their deadline.

  • If one of the three categories requires Significant change, this is classified as a normal, manageable project.

  • If two categories require Significant chance, the project has a higher risk, and further investigation and planning is recommended.

  • If all three categories require Significant change, this project has a high risk, and will usually be unsuccessfully. Recommendation is to start over.

  • High Risk Assessment:
  • G-HIGH Technology, LOW Structure, SMALL Size.
  • H-HIGH Technology, LOW Structure, LARGE Size.