Standard Project Risk Analysis Approach

• Published in: Business Systems Research Vol. 11; no. 2; pp. 149 - 158
• Main Authors: Žužek, Tena, Rihar, Lidija, Berlec, Tomaž, Kušar, Janez
• Format: Journal Article Paper
• Language: English
• Published: Zagreb Sciendo 01-10-2020; University of Zagreb, Faculty of Business and Economics; Udruga za promicanje inovacija i istraživanja u ekonomiji "Irenet"
• Subjects: Decision making; Mechanical engineering; O22; O32; Probability; Risk analysis; Risk assessment; Risk management; risk map; standard risk model
• ISSN: 1847-9375; 1847-8344; 1847-9375
• DOI: 10.2478/bsrj-2020-0021

Background: To stay competitive in a highly unpredictable market of today, companies must be able to manage project risks effectively. The basis for an effective risk management is a thorough risk analysis. Despite the availability of many different risk analysis approaches, companies can be reluctant to use them, since the models are usually complex and very time consuming.
Objectives: The main objective is to present a simple, yet effective risk analysis approach that can also serve as a useful basis for resolving project risks.
Methods/Approach: The proposed standard risk analysis approach is based on a standard risk model that deals with risk events and impacts separately and therefore allows for a separate planning of preventive and corrective measures. To classify risks and to represent them graphically, a risk map is used.
Results: The use of the proposed approach is illustrated on a die-cast tool development project. The approach proved to be very simple to use and it served as a useful basis for resolving the identified risks.
Conclusions: The main advantage of the proposed approach is its simplicity and clarity. It can also be used as a quick decision-making tool in a subsequent risk resolving process.