Freakanomics

RIPping up risks to figure out which are largest

It is very easy to get so caught up in analysis paralysis that you never get around to actually responding to your identified risks. Estimating them instead provides a quick, low-cost way to figure out how big each of your risks are relative to each other. Risk estimation is easy when you remember that risk consists of two components: impact and probability—each of which has a simple proxy for quick estimation…

Looking for risks in all the places they can occur

To actively manage risk across your enterprise, you will need develop an organization-wide consistent method to seeking out and identify risk. This requires two critical steps: 1) develop a clear definition of risk enterprise-wide and 2) teach your staff to seek out and plan for all types of risk: positive, negative, internal and external. Once you do this, you will be ready to begin planning for and managing response to nearly any situation of importance that is likely to occur…