19th September, 2019
As per various global standards available, “Risk” has many definitions and few extracts are provided below:
Risk as defined in ISO 31000:2018:
According to ISO 31000, “Risk” is the “effect of uncertainty on objectives” and “effect” is “positive or negative deviation from what is expected”. The following will explain what this means.
Risk as defined in ITIL V3:
ITIL V3 Definition of Risk is: “A possible Event that could cause harm or loss, or, affect the ability to achieve Objectives.”
Risk as defined in CMMI Version 1.3:
CMMI Version 1.3 definition of risk is: “A potential problems that occur during various activities across the life of the product or project that cause adverse impacts on achieving objectives.
Let us try to evolve our own definition of Risk:
Risk, as we see it in our day to day life, is the anticipation of an undesirable event/activity that can cause varying degree of harm/injury/damage impairing the capability to achieve the desired result. The calculation of Risk is intuitively programmed within us and our brain is adjusted to carry out this calculation in milli-seconds every moment. In order to determine or quantify the Risk, we have to develop an arbitrary cum mathematical model that is based on the probability of an unwanted event/activity to realise itself and the exposure that we may have to the harm/injury/damage due to the said event/activity. The exposure to harm/injury/damage is dependent on the vulnerability that we may have with respect to harm/injury/damage. The extent of harm/injury/damage is also dependent on the Potency or the Strength and Motivation of the Harming Agent which is also called the Threat. So, the key terms that are used in the determination or quantification of Risk are Probability, Threat and Vulnerability. There are other factors also that can be considered while determining the Risk that may be specific to the situation. To summarize, Risk is the possibility of an undesirable event happening that is a function of the threat available and our vulnerability to the threat.
Typical Artefacts that capture Evidence of Risk Management are Project Management plan, Risk Management Plan, Mitigation Plan and Risk Log.
RISK MANAGEMENT Cycle in CMMI Version 1.3:
Risk SPs in CMMI under Risk OF Process Area:
SP 1.1- Determine Risk Source and categories.
SP 1.2 – Define Risk Parameters.
SP 1.3 – Establish Risk Management Strategy.
SP 2.1 – Identify Risk.
SP 2.2 – Evaluate, Categories & Prioritize Risk.
SP 3.1- Develop Risk Mitigation Plans.
SP 3.2- Implement Risk Mitigation Plans.
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