ABSTRACT
The first step in planning risk prevention strategies is to analyze the cause of the risk. This analysis must get to the root cause of the issue, otherwise an inappropriate and perhaps ineffective prevention plan may result. Going over budget or falling behind schedule are not risks themselves — they are the result of risks occurring. This is analogous to a doctor treating a patient. It may be possible to relieve suffering for a while by treating the symptoms, but recovery may be impossible unless the underlying disease is properly diagnosed and managed. Various tried and tested methods are available for risk analysis. Some are quick and dirty while others require more effort and are more intricate. The choice of method may depend on the resources at the disposal of the project manager, the time available for analysis and planning, and the nature of the potential risk event. The outcome of this activity is a specific risk statement. Risk analysis should be used during the planning stage as a preventative tool, but can also be used during implementation if unexpected or unlikely risks manifest themselves and no prior preventative strategies are in place. A risk statement should be concise, simple, focused on each individual threat (or opportunity), and should not contain negative or emotive language such as words like “poor,” “inadequate” and so on.
