3.7  Risks

It is important that the risks involved with each option are identified and their impact on both costs and benefits assessed.  The level of risk for each option will be taken into account when ranking the options.

Risk methods:

•  Structured review meetings

•  Risk audit interviews

•  Brainstorming workshops

The identified risks should be added to the Risk Register until such time as the option is rejected.

Scoring of the risks is carried out by assessing both the probability and the impact of each risk in a range from 1 to 10.  The sum of the scores for each risk indicate the relative level of risk of each option.

Once the preferred option is decided then consideration should be given to how risk may be minimised.  This could be achieved by risk management or risk transfer.  Risk may be transferred to the private sector by an outsourcing contract or the use of PFI or a Partnership Agreement.  All risks that remain with the organisation should be the subject of a risk management plan.

(GR2) assessment of impact of major risks on project