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Risk Management in Innovation Design

There are 5 parts to a risk management system: (1) monitoring and review, (2) establishing context, (3) risk assessment including identification, analysis, and evaluation, (4) risk treatment, and (5) communication and consultation. When identifying risks, questions about what could happen, where, when, why, how, and what could cause or else happen should be asked. Risk analysis and evaluation should define scales for consequence and likelihood and be consistent. Risk treatment includes avoiding, increasing, removing, changing likelihood or consequences of, transferring, or accepting risks. Scenario analysis involves creating a list of assumptions, questioning their validity, determining alternative pessimistic assumptions, and testing impacts.

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35 views2 pages

Risk Management in Innovation Design

There are 5 parts to a risk management system: (1) monitoring and review, (2) establishing context, (3) risk assessment including identification, analysis, and evaluation, (4) risk treatment, and (5) communication and consultation. When identifying risks, questions about what could happen, where, when, why, how, and what could cause or else happen should be asked. Risk analysis and evaluation should define scales for consequence and likelihood and be consistent. Risk treatment includes avoiding, increasing, removing, changing likelihood or consequences of, transferring, or accepting risks. Scenario analysis involves creating a list of assumptions, questioning their validity, determining alternative pessimistic assumptions, and testing impacts.

Uploaded by

Varun James
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd

ENGG950 Innovation and Design

Week 11: Risk Management

1. How many parts are there in risk management system? What are they?
Answer:
(1) Monitoring and review (2) Establishing the context
(3) Risk assessment: risk identification, risk analysis, risk evaluation
(4) Risk treatment (5) Communication and consultation

2. What does establishing the context define?


Answer:
Define project objectives and define the boundaries within which risks must be
considered and managed

3. When you identify risks, what questions should be asked?


Answer:
(1) What can happen? (2) Where can it happen? (3) When can it happen?
(4) Why would it happen? (5) How can it happen?
(6) What would cause it to happen? (7) What else could happen?

4. How many tools are used for being inventive? What are they?
Answer:
(1) Brainstorming (2) Reverse brainstorming (3) Design tree (4) Process tree

5. What should we notice about risk analysis and evaluation?


Answer:
(1) Need to define and be consistent on evaluation of consequence and likelihood
(2) Consider quantitative scales for: Consequence ($) and Likelihood (%)

6. What does risk treatment include?


Answer:
(1) Avoid the risk by deciding not to do an activity
(2) Take or increase the risk in order to pursue an opportunity
(3) Remove the risk source (4) Change the likelihood
(5) Change the consequences
(6) Transfer or share the risk with other parties (including contracting and risk
financing/insurance)
(7) Accept the risk by informed decision

2
ENGG950 Innovation and Design

Week 11: Risk Management

7. How to analyse scenarios?


Answer:
(1) Create list of project assumptions
(2) Ask a lot of what if questions about assumption being wrong
(3) Determine a pessimistic (within reason) alternative assumption
(4) Test the impact of the assumptions change

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