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The Busy Person's Project Management Book
Tip: Project vs Business Risk Assessment et al
The area of risk and risk management is becoming very important as many senior management begin to understand the potential losses that their organisation can be exposed to e.g. the Barings' incident. However, you need to be a little careful when you talk to other people in your organisation about risk assessment.
There are three basic categories of risk and risk assessment.
The first is the approach introduced in this book which is Project risk assessment. In this category, we examine the factors that are likely to cause problems while the project is being undertaken.
The second category of risk assessment could be called Business risk assessment. Business risk assessment is similar to the apporach undertaken by auditors and examines the potential exposure of the organisation to fraud, legal proceedings, media attention , loss of human life and so on through the failure of the project.
The third category of risk assessment deals with the "rocket science" area of foreign exchange dealing, stock market trading and so on. This area of risk assessment attempts to determine the organisation's exposure to various financial instruments.
Just be sure that you always use the term Project Risk Assessment when using the approach in this book.