VER DISCO Initial Risk Assessment The purpose of an initial risk assessment is to identify and evaluate potential risks that could impact a project, process, or organization. Early identification and communication ensures the right allocation of time, resources and budget to mitigate. Defined Outcomes Purpose Identifying risks early on ensures organizations can develop strategies Project Risk & Issues Assessment to include: ● Likelihood: Risks are rated based on their probability of to mitigate them, enhancing the likelihood of achieving the project occurring, from 1 (Rare) meaning highly unlikely, to 5 (Almost objectives and to: Certain) meaning they are almost certain to occur. ● Ensure all team members and stakeholders are aware of ● Impact: The potential impact of risks is rated from 1 possible challenges and obstacles. (Insignificant), which has negligible effects, to 5 (Catastrophic), which can cause project failure. ● Allocate resources effectively to address the most critical risks. ● Risk Level: Determine risk levels by multiplying likelihood and ● Create contingency plans to manage risks that cannot be impact scores. Scores range from 1-4 (Low risk), 5-9 (Medium entirely avoided, minimizing their adverse effects. risk), 10-15 (High risk), to 16-25 (Critical risk). ● Identify potential cost overruns early due to risks, helping to ● Mitigation Strategies: Address risks by either avoiding them, maintain budget control. reducing their likelihood or impact, transferring them to a third party, or accepting and monitoring them closely. Best Practice Project Risk & Issues Assessment Log Tools & Templates