Identify and evaluate techniques to specify risk

2.2 Techniques to Specify Risk and Risk Interdependencies

The critical process to specify risks can be at any level including the entire company, a strategic business unit, a function, project, process and activity. Similarly, as noted by Beasley et al. (2019) risk interdependencies identification are instrumental as they establish an elaborate objective to identify connected events that could give rise to other risks impeding the accomplishment of a specific strategy or objective.  According to Andretta (2014) study that evaluated on risk analysis theory risk specification noted that the process potentially contribute to the risk being mitigated. The techniques for risk specification include;

Brainstorming

According to Beasley et al. (2019), brainstorming is a process including a team working collaboratively in articulating risks with specifying the known and unknown risks. The strength of this technique is founded on its adoption of ERM framework and the extent in which the brainstorming session fits in the ERM process. Also, the involvement of multiple individuals in this technique improves the extent in which the risks and objectives are correlated and their different impact on different business units or interdependent. Nevertheless, Rostami (2016) study pointed out on instances of humiliation or demotion in using this technique in risk specification. The facilitators often limit the level of expression of employees and risk and identification.

Interviews and Self-Assessment

Beasley et al. (2019) observed that