Risk identification is the process of identifying and documenting potential risks that could impact the successful completion of a project, program, or organizations objectives. It is an inherent part of a broader risk management strategy to help reduce any potential risk-related consequences. The process of risk identification involves detecting, describing, and cataloging all potential risks to assets and processes that could negatively impact business outcomes in terms of performance, quality, damage, loss, or reputation. The objective of risk identification is to identify events that, if they occur, will have negative impacts on the projects objectives.
Some techniques used in risk identification include brainstorming, checklists, and flowcharts. Brainstorming involves a group of people generating ideas and potential risks, while checklists involve reviewing a list of potential risks and determining which ones are relevant to the project or organization. Flowcharts are used to identify the sequence of events that could lead to a risk.
It is important to note that risk identification is not a one-time event, but rather an ongoing process that should be revisited throughout the project or organizations lifecycle. By identifying potential risks early on, organizations can take proactive measures to mitigate or avoid them, ultimately reducing the likelihood of negative impacts on their objectives.
