How do you measure and demonstrate the value and benefits of risk exploitation and enhancement?

1 Define your objectives and criteria

Before you start exploiting or enhancing your opportunities, you need to have a clear vision of what you want to achieve and how you will measure your success. You should align your objectives and criteria with your overall project or business goals, as well as with the expectations and interests of your stakeholders. For example, you may want to increase your revenue, market share, customer satisfaction, or innovation. You should also define the key performance indicators (KPIs) and metrics that will track your progress and outcomes, such as return on investment (ROI), net present value (NPV), or customer retention rate.

2 Identify and prioritize your opportunities

The next step is to identify and prioritize your opportunities using a systematic and consistent process. You can use various techniques, such as brainstorming, SWOT analysis, or PESTLE analysis, to generate and evaluate your potential opportunities. You should also consider the sources, causes, and triggers of your opportunities, as well as their interdependencies and interactions with other risks and uncertainties. You can then rank your opportunities based on their probability and impact, using a qualitative or quantitative scale, or a risk matrix. You should focus on the most significant and feasible opportunities that align with your objectives and criteria.

3 Select and implement your strategies

Once you have prioritized your opportunities, you need to select and implement the most appropriate strategies to exploit or enhance them. Risk exploitation involves maximizing the probability and impact of an opportunity, such as by allocating more resources, investing more capital, or pursuing more aggressive marketing. Risk enhancement involves increasing the probability of an opportunity, while reducing the impact of a threat, such as by partnering with another organization, diversifying your portfolio, or hedging your bets. You should also document your strategies, actions, responsibilities, and timelines in a risk register or action plan.

4 Monitor and review your results

The final step is to monitor and review your results and benefits of your risk exploitation and enhancement strategies. You should use the KPIs and metrics that you defined earlier to measure and compare your actual performance and outcomes with your expected or planned ones. You should also collect and analyze feedback, data, and evidence from your stakeholders, customers, and market. You should then evaluate the effectiveness and efficiency of your strategies, actions, and processes, and identify any gaps, issues, or lessons learned. You should also report and communicate your results and benefits to your stakeholders, sponsors, and clients, using clear, concise, and compelling formats, such as dashboards, charts, or stories.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?