Subtitles of the Movie

Although risk assessment is really part of risk analysis, we'll cover the benefits of risk assessment separately, specifically to highlight an introduction to risk assessment in general since it's an important part of risk analysis. As you may or may not know at this point, risk assessment occurs as part of qualitative risk analysis. Before you can even assess risk, you need to define risk impact and definition according to your organization and to the stakeholders involved within the project. Everyone must be on the same page. This is critical and one of the reasons that you can move forward with risk management and risk analysis for that matter until the risk management plan has been created. The reason for this, as we covered in Part 1 of this course series, is that the risk management plan identifies the approach to carrying out the risk management processes and also defines risk probability and impact, which will be used to assess risk. We won't cover risk assessment in detail now since we'll do that in the next section where our focus will be on reviewing qualitative risk analysis. But let's go through some of the key goals and benefits. Some of the goals include to define the impact and probability of each risk and to prioritize risk and again, these are the goals of risk assessment. And let's go through a few of the benefits. First, it allows the project or the risk management team to focus on the high-priority risks. It makes sure that everyone is one the same page in terms of dealing with risk. It forces an organization to define the guidelines of assessing risk and therefore defining how to measure risk probability and risk impact. It considers the level of uncertainty within risk when prioritizing risk and then finally it considers risk impact and probability jointly. If you take a step back and absorb these benefits, you begin to see how important assessing risk is to project management and how important it is to assessing risk accurately. I mentioned in the first movie how risk analysis is not a solo effort by a project or risk manager. You can see based on our look of risk assessment here, how defining the guidelines of how risk will be assessed involves several individuals. If risk is assessed in terms of an organization risk tolerance levels, then the risk responses will be more effective and accepted. Hopefully that has helped clarify the importance of risk assessment and the importance of approaching risk assessment and risk analysis with the correct approach. And that concludes this movie on the goals and benefits of risk assessment.