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Take the right chances with our risk analysis template

Conduct a qualitative and quantitative risk analysis for your company or project with this risk analysis template.
It is not the manager’s job to prevent risks. It is the manager’s job to make it safe to take them.
Ed Catmull, president of Pixar Animation and Disney Animation

Risk is an unavoidable part of business. It comes up in nearly everything we do, from hiring new staff to taking on projects that are outside our comfort zone.

But risk, as most of know it, has a lot of bad connotations. People hear the word and they assume the worst. Because of this, there can be a hesitation around taking risks, especially in the business world. Projects might fail. New hires might not stay. New features might not be what customers are looking for.

Without risk, though, though, you can’t succeed. It’s why, rather than avoid risk altogether, businesses use strategies (and templates) that help them understand whether a risk is one that’s worth it, or whether it’s going to burn the whole business down in the process.

That’s where risk analysis comes into play.

What is risk analysis?

is the process of examining the various potential risks that might come up over the course of a project and is a part of risk management as a whole in business. It allows you to both qualify and quantify potential project risk to see how they might affect the final product. Risk analysis doesn’t remove risk from projects, but it gives you a way to use preemptive mitigation for potential problems or put systems in place to deal with risks that you may encounter. The end result being that you’re making smarter decisions around the risks involved with any given decision (or project) because you’ve carefully considered as many possibilities
as possible.

In project management, there are two ways that risk tends to be analyzed, qualitative and quantitative.

Qualitative risk analysis

Qualitative risk analysis is looking at how likely something is to happen based on factors such as whether they’re likely to actually happen and impact (along with other relevant factors that may exist within your company). Qualitative analysis allows you to decide which risks are worth focusing on and which ones you can reasonably ignore. You run a qualitative risk analysis to help you save time and energy by not focusing on every possible risk (because there are going to be some that just aren’t worth looking at). Instead, you look at the ones with the biggest negative impact on a project and those that are highly likely to actually occur.

Quantitative risk analysis

With quantitative risk analysis, you’re looking at the risks identified as noteworthy in the qualitative risk analysis phase, digging deeper into the potential impact of the risk, and assigning a numerical value based on that impact.

Essentially, you’re assessing factors like the impact on cost, schedule, and outcome to determine how much any given risk might affect the project. The higher the number, the greater the risk. A risk assessment matrix template can help with this stage.

What is the purpose of risk analysis templates?

Risk assessment templates give you a way to systematically analyze risks that you may encounter in a project. With the right customization, they can be used to help with the specific kinds of risks that apply to your business and allows you to focus on creating better processes and working smarter within your organization.

Project planning

The more you think about what
could
happen before you start a project, the easier planning becomes. To some, it might seem like you’re looking too hard at all the negative things that
might
happen. But risk isn’t always a bad thing. It’s just something that could happen that might impact the desired outcome.

With a thorough risk analysis, you’re giving yourself a way to prepare for all the things that might happen, good or bad. It allows you to be proactive about dealing with risks as they come up, rather than scrambling to fix something after the fact. That way, if something does go wrong, you’ll look way more professional when you deal with the problem because you’ve already put a plan in place.

Improving business safety

You can’t avoid risk in your business, but you can put better systems in place to manage it. Risk analysis gives you a way to put risk control in place before you even start. This way, when something happens during a project, even if it’s a high-risk situation, you’ll be able to handle it in a way that reduces the overall potential impact of risks.

When risk mitigation becomes a regular part of your projects, you don’t reduce the level of risk, but you become more adept at managing it. The better you get at managing risk, the more secure your business will be, even when things go wrong.

Preparing for possible future hazards

The more time you spend thinking about risk in your business and the projects that you run within your business, the better prepared you’ll be for, well, everything. Even if you discover a kind of risk that you’ve never seen before, when you have plans and templates in place to help you figure out the best possible way to manage these new issues as they arise.

👉 Get started with this free risk analysis template
Copy this template

After you copy this template, you can start utilizing this free risk analysis template for your projects and your business.

How to use risk analysis template by Coda

Step 1: Set up risk properties

Before you start listing all the risks associated with a project, there are a few risk properties you need to define. These are all in the
page. For instance, the
includes things like
@External
and
@Project Management
, but your company may have different risk categories. There are also
and
to define. We put some default values in these lists, but you should customize this based on the needs of your company.

Getting these properties listed out correctly is important since they are referenced in the main
Risks
table which we’ll discuss in the next step.

Step 2: Add risks and evaluate impact

The main part of this template is the
page. On this page, you can add new risks to the
. For each risk you identify, you can add info related to this risk like the risk’s
Context
,
Risk Category
, and the
Owner/DRI
. You’ll notice that some of the dropdowns in this table are populated by the properties you set up in the previous step (see the
page). Once you have all the risks for your project entered in, it’s time to do the actual risk analysis in the next step.

Step 3: View your project’s risks in different ways

In the
,
, and
pages, you’ll see the same list of risks you created from step 2. However, the list of risks in these pages are
views
of the main table. This means that whatever you add or edit in the main
will get reflected in these pages.

The purpose for these different
views
is to analyze your project’s risks across multiple dimensions. If you only want to see the top-ranked risks in terms of the dollar impact, you would look at the
page. To see the “most likely” and “highest rated” risks, you would consult the
page to see which risks should take most of your attention.

Common FAQs about risk analysis templates

What is the difference between risk analysis & risk assessment?

How do you write a risk analysis?

What are the five main steps in risk analysis?

What are the risk rating categories?

What are the main risk categories?



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