What are the essential steps for program risk assessment?

??? Program context involves the operational, strategic, and external factors that may affect a program's success. It includes the ?? program's purpose, ?? objectives, ?? stakeholders, and ??environment. This context is assessed by clearly outlining these factors. Understanding the business landscape, sector-specific issues, legal considerations, and stakeholder desires forms part of the external context. Internal context would involve analyses of resources, processes, and organizational culture. ?? This comprehensive understanding helps predict potential risks, their impacts, and to devise suitable mitigation strategies.

These are all key and can be complemented by software, AI, etc. This is an area that continues to grow - the additional access to tools that perform some of the traditionally administrative risk ID tasks. For example, pure risk management software, risk modules in other software or part of a platform, or utilising tools like GPTs. There’s no substitute for the human contribution but data-driven decision making and automated risk identification and analysis can free up time for those tasks that require a human.

??? Program risks are identified via several methods. ?? First, conduct a risk analysis workshop with relevant stakeholders to brainstorm potential risks based on their expertise. ?? Have a risk identification framework that examines the program's operational, strategic, and external context. ?? Using historical data or lessons learned from similar programs can aid in risk identification. ?? Potential risks can also be spotted through regular program auditing. ?? Lastly, encourage constant communication and cultivating an open culture where team members feel safe to voice concerns. Each potential risk should be recorded for further analysis.

??? Prioritizing program risks involves evaluating them based on their: ?? potential impact and ?? likelihood of occurrence. This is done using a risk matrix that grades risks on these two criteria. High-impact, high-likelihood risks demand immediate attention. Regular reviewing and updating of this risk matrix is critical as circumstances change. Involving stakeholders in this process ensures that the most important risks are considered first. Avoiding prioritization based only on initial perceptions or assumptions is a common best practice. This approach helps manage resources efficiently and ensures the program's successful delivery.

??? Planning the program risk response involves determining what actions to take for each identified risk. Risks can be categorized into four responses: ?? Avoidance (change plans to completely avoid the risk), ?? Mitigation (reduce the impact or likelihood of the risk), ?? Transfer (outsource or insure against the risk), and ?? Acceptance (taking no action and accept the consequences). Risk response strategies should be developed based on the risk's impact, the cost of the response, and the program's capacity. Each risk should have an owner responsible for implementing the response plan. Regular reviews and updates are needed as situations evolve.

??? Monitoring and controlling program risks requires a proactive approach. Regularly review and update the risk register, paying attention to changes in risk impact or likelihood. Implement risk response strategies and track their effectiveness. Regular risk reporting should be done to all stakeholders. Good communication is key; all team members should understand the risks and their roles in managing them. Audits and reviews should be conducted periodically checking for deviations or early signs of risks materializing. Quick corrective actions should be taken if needed. Adapting plans based on changes is crucial in controlling risks.