How To Assess Risks

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How To Assess Risks
How To Assess Risks

Video: How To Assess Risks

Video: How To Assess Risks
Video: What is Risk Assessment? What, Why & When for Health and Safety 2024, April
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Modern marketing and economic techniques make it possible to assess the risks of an enterprise, starting from a variety of goals and indicators. Whatever the analysis is for, it's worth starting with general things. In the early stages, a SWAT analysis is the best way to assess the situation and compare risk indicators with indicators of opportunity in the early stages.

How to assess risks
How to assess risks

Instructions

Step 1

Break down a business or other object of study into its constituent parts. To do this, draw a square, divided into four more squares so that you get 2 identical columns and two identical rows. Name the upper right square - Strengths;

Top left square - Weaknesses;

Bottom right - Opportunities;

Bottom left - risks and threats (Threats);

Step 2

To calculate the business opportunities and risks, you need to fill in all the available columns. In the strengths, write down everything that your company possesses in the external, and then in the internal environment. For example: competent specialists, good understanding of consumers, unique production technology, etc. Give all the points inscribed a point, from one to three, depending on the importance of this argument (the more important, the higher the number).

Step 3

In the weaknesses, describe the shortcomings of the object under study in the external and internal environment. For example: a weak market participant, weak advertising support, lack of plans and strategies for the next 3 years. Just as in the previous version, assign each argument a number between one and three. The more the weak side affects the object under study, the greater the number.

Step 4

Indicate in the opportunities available to the company the theoretical and practical opportunities for growth, development, and so on. For example, expanding the range of services, a large selection of resources, "concessions" in the new legislation. Just like in the previous paragraphs, place your marks.

Step 5

Describe the risks the company may face and the threats it may face. For example, fierce competition, increased requirements of resource suppliers. Appearance of a substitute product on the market. Post grades.

Step 6

Try to assess all points as adequately and honestly as possible. This is what distinguishes one manager from another - the ability to correctly analyze the situation and draw appropriate conclusions. Now you need to add the "positive" scores and subtract the "negative" scores from them.

Step 7

If the resulting score is negative, the company is at risk, and it is extremely dangerous for it to take rash steps. To resolve this situation, a strategy must be developed to eliminate weaknesses and turn opportunities into strengths.

Step 8

If the result is positive, the company is in a prosperous zone, and it can afford to take certain risky steps.

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