1.
The best way to reduce the negative impact risks may have on your business
is to incorporate risk management techniques into your business structure.
This is a guide of visual risk management techniques that you can use during
each stage of your risk management strategy.
The Visual Risk Management Techniques
• Help to identify projects that might be headed toward trouble and apply solutions
• Help to prepare for unexpected threats beforehand
• Help to provide enough data to make better decisions regarding projects/ events
• Help to improve communication between stakeholders and project teams
• Help teams stay more focused on the key outcomes

2.
The risk management process begins with identifying risks in advance
once you have set the goal. Identifying risks should be done early in a
project and shouldn’t be done in the middle of or during a project, as it
may be too late.
Identifying risks can be done in 2 ways;
• By identifying root causes and the impact they may have
• By identifying the essential functions the company must perform to
reach a goal and identifying how they can fail
Identify Risks

3.
Decision trees are used to make decisions when you are faced with
multiple options. It allows you to assess the values of outcomes and
possibilities of achieving them. This, in turn, helps make a better decision.
Identify Risks
Decision Tree Diagram

4.
Step 1: Identify decisions and prepare a decision tree diagram based on decisions,
costs, and rewards of uncertain options available to you.
Step 2: Figure out the probability of a risk occurring and assign it
Step 3: In this step you have to identify the monetary value of the risk, or in other
words how much it would cost you if the risk is to occur
Step 4: Calculate the Expected Monetary Value (EMV) of each decision path by
multiplying probability and impact
How to use Decision Tree Diagram

5.
Decision Tree Analysis Template

6.
Decision Tree Diagram
Template

7.
Decision Tree Diagram With 6 Outcomes

8.
An influence diagram is used to represent the summary of information of a
decision tree. It shows variables that are known and unknown when
making a decision and the relationships that exist among them.
Identify Risks
Influence Diagram

9.
Step 1: Identify the decisions to be made to reach your objective
Step 2: Consider the risks and performance factors that may have an influence on
achieving your objective.
Step 3: Recognize secondary factors that affect uncertainty associated with the
performance factors.
Step 4: Identify second-order risk factors that can influence secondary factors.
How to use Influence Diagram
Step 5: Continue to figure out what factors influence uncertainty until all key risks are
identified.

10.
Influence Diagram for Risk Management

11.
Whether you are planning a new project or developing a new process, a
SWOT Analysis can help you get insight into any risks that may occur. It
helps you identify the Strengths, Weaknesses, Threats and Opportunities
associated with the event.
Identify Risks
SWOT Analysis

12.
Step 1: The first step is to list down your strengths. Knowing these will help you to be
more confident.
Step 2: The second step is to identify your weaknesses. Identifying weaknesses is the
best way to improve them.
Step 3: Opportunities come in different shapes and forms. Sometimes opportunities
past by you without you even noticing them.
Step 4: When doing a personal SWOT analysis you need to think of yourself as a
company or a product and assess yourself against others.
How to use SWOT Analysis

13.
SWOT Analysis of Tourism
Industry

14.
SWOT Analysis Blank
Template

15.
SWOT Analysis Blank
Template

16.
Also known as the Ishikawa diagram and the cause and effect diagram, the
fishbone diagram is used to break apart a problem and identify the root
causes behind it. It works backward as it helps identify the causes of a
certain effect.
Identify Risks
Fishbone Diagram

17.
Fishbone / Ishikawa
Diagram Template

18.
Fishbone / Ishikawa
Diagram Template

19.
Fishbone / Ishikawa
Diagram Template

20.
Process maps help visualize the major steps and relationships between
them in a process. By having the people who actually perform it outline
the process using a process map, you can check for its accuracy. This also
helps identify bottlenecks and blockers in advance.
Identify Risks
Process Maps

21.
Step 1: Identify the team you need to map – whether its a new process or a process
being redesigned
Step 2: Bring together everyone who is involved in performing/ developing the
process and brainstorm all information related to the process, such as inputs,
outputs etc.
Step 3: Take the steps you identified and put them in a sequential order
Step 4: Draw a map that shows the current state of the process
How to use Process Maps
Step 5: Identify the bottlenecks and flaws in your process

22.
Process Map for Risk
Management
Template

23.
Once you have identified the risks, the next step is to assess the risks to see
what kind of an impact they have on your business and current projects. By
correctly analyzing the risks, you will be able to prioritize as to which risk has
the highest impact on your business.
Analyzing risks can be done in two ways
• Qualitative risk analysis – here the risks are analyzed based on the
likelihood of them occurring and the impact they may have on projects,
business etc.
• Quantitative risk analysis – quantifies the possible outcomes and evaluate
the probability of achieving objects
Analyze the Identified Risk

24.
This is a tool that can be used to do a qualitative risk assessment. It helps
to evaluate the relative impact (high or low) of a risk and the probability of
its occurrence (high or low).
Analyze the Identified Risk
Risk Probability and Impact Matrix

25.
Risk Probability and
Impact Matrix
Template

26.
Pareto diagrams are a great way to identify which problems should be
prioritized based on the cumulative effect it has on a system. While the
length of the bars represents the frequency or cost (time or money), the
bars are arranged with the longest bars to the right and shortest bars to
the right. This way it depicts which situation is the most significant.
Analyze the Identified Risk
Pareto Chart

27.
Step 1: Identify the categories you want to use to group the items, and the
measurements (i.e. frequency, cost, time etc.)
Step 2: Decide the period of time (an hour, week or day etc.) you want the Pareto
chart to cover
Step 3: Collect the data along with the category and subtotal the measurements for
each category
Step 4: Determine the right scale for the measurements and mark the scale on the
left side of the chart
How to use Pareto Chart
Step 5: Label bars for each category, placing the tallest at the far left
Step 6: Calculate the percentage for each category
Step 7: Calculate and draw cumulative sums

28.
Risk Probability and
Impact Matrix
Template

29.
The fault tree analysis helps to identify the probabilities of various
outcomes from given faults and failures. The fault tree analysis helps to
identify the likelihood of an event occurring by visualizing a certain event
at a top and the conditions causing that event.
Analyze the Identified Risk
Fault Tree Analysis

30.
Step 1: Identify the fault/ failure that should be analyzed
Step 2: List down the immediate or direct causes of the fault. Thoroughly examine
each step until the root causes are analyzed
Step 3: Once you apply the data to the fault tree, use it to do the evaluation
How to use Pareto Chart

31.
Fault Tree Analysis Diagram Template

32.
In the planning phase of the risk management cycle, you need to pay
attention to mitigating risks by finding solutions and controlling them.
Starting from the risks that have the most severe impact on your projects
or organization, find out how to minimize their effect.
Planning to Avoid Future Risks

33.
Futures wheel is a tool that you can use to identify direct and indirect
results of a certain trend, event or decision.
Planning to Avoid Future Risks
Futures Wheel Diagram

34.
Step 1: Identify the change. This could be a problem or a potential risk.
Step 2: Brainstorm possible consequences of the trend.
Step 3: Brainstorm the secondary or “second-order” consequences related to the
“first-order” consequences you identified earlier. You can continue to expand
the diagram by adding several layers.
Step 4: Calculate the Expected Monetary Value (EMV) of each decision path by
multiplying probability and impact
How to use Futures Wheel Diagram
Step 5: Once the futures wheel is complete you can get an overview of the direct and
indirect consequences of the change you want to implement.
Step 6: Take the negative consequences and identify possible actions you can take to
control them.

35.
Futures Wheel
Template

36.
The process decision program chart (PDPC) help you look into what might
go wrong in a plan that is under development. You can use the chart to
alter your plan in order to prevent the problem from occurring and to
prepare a contingency plan to mitigate the risk.
Planning to Avoid Future Risks
Process Decision Program Chart

37.
Step 1: Create a tree diagram of the plan, listing the objectives, main activities and
the tasks that should be completed under each activity.
Step 2: Take the tasks on the third level and brainstorm what could go wrong
Step 3: If the consequences of the problems identified earlier are insignificant leave
them out. Add the significant problems related to each task on the tree
diagram as a fourth level.
Step 4: Come up with countermeasures for each problem, and add them as a fifth
level to the diagram
How to use Process Decision Program Chart
Step 5: Consider how practical each countermeasure is in terms of time, resources,
cost etc. You can use an X to mark the impractical solution and an O to mark
those that are practical.

38.
Process Decision
Program Chart – PDPC
Template

39.
Risk reward analysis is a tool you can use to evaluate the risk and reward
profile of different options.
Planning to Avoid Future Risks
Risk-Reward Analysis

40.
Step 1: List down the options and possible risks related to them
Step 2: Plot the risks and rewards on the risk-reward analysis chart
Step 3: While some options may have a positive risk-reward profile, take time to see
whether you should spend time on mitigating risks of other options as well
Step 4: Compare each option against one another to identify the best option for you
How to use Risk-Reward Analysis

41.
Risk – Reward Analysis
Template

42.
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