Risk Management: Fast Track to Success

PART A AWARENESS

10

guide risk planning. This furthers the perception that the risk

process is not adding value. At the opposite end of the scale,

some risk statements may resemble essays and therefore

never get read by busy managers.



Quantitative analysis is often based on wild numerical guesses

and leads to incorrect prioritisation and inappropriate action.

People tend to concentrate on the risks that they can quantify,

for example contractual penalties or direct cost of resources, and

play down risks that have ‘softer’ impacts that can’t be quanti-

fied, such as impacts on quality, relationships or reputation.

 Qualitative