Qualitative risk assessment method
Posted: Sun Feb 02, 2025 7:04 am
This method involves identifying negative factors in advance. It is necessary to analyze everything: current political and economic situations, options for exporting goods, customs work, the situation on the sales market, suppliers of high-quality equipment and raw materials.
In essence, the specialist will have to prepare for any force majeure situation, have a plan for its solution in hand. The employee must have everything necessary in advance to neutralize or minimize negative consequences. This is achieved as follows:
Consider the option in which philippines email list competitors enter the sales market with similar and more serious products, against which yours will lose. In such a situation, you can try to reduce the cost of the product in advance to attract customers or speed up the implementation of your project. This way, you can get ahead of competitors, enter the market earlier and recommend your own product.
Plan your business carefully. Think through all the deadlines that the project should have, find suppliers in advance, assemble a team that would completely and entirely suit you. The speed and coherence of the company's work depend on this. If you are afraid that employees will not want to obey, either introduce a system of fines, or you will have to say goodbye to part of the team.
Think about the price range in advance. This will help you when you slow down production: you will be able to sell the product in greater quantities at a lower price, but in the end it will not affect the financial part of the project. Sometimes it is worth including an adjustment for financial costs in the final cost of the product.
Designate specific stages in your business. Sum up the interim results after each one, determine which goals have been achieved and which have not yet been achieved, how appropriate it is to move on to the next point, etc. The effectiveness of this approach will increase many times over.
Basically, in such a model, you represent the project as one big scheme, where each branch from the main line represents a goal that simply must be achieved. This is done so that when risks arise, you can find an intermediate stage from which it will be easier to start working, or even a solution to the problem that has arisen with the achievements already achieved.
Absolute indicators of financial stability
Source: shutterstock.com
Risk betting method
This approach involves determining a monetary rate that will indicate the probability of an event occurring. The amount is the maximum income that can be obtained from alternative sources. For example, you can assess the risk of launching a production chain with a new product by comparing it with the alternative of buying new equipment and launching a line on it. Each of the options is assigned a certain rate.
This method is visual, which is its undoubted advantage, but the lack of the ability to see the risk in the long term is a significant drawback (often the data changes during implementation). It is also necessary to correctly select an analogue for business risk analysis, since the elements must be comparable. The disadvantages of this method cannot make it the main one for research, so it can only be additional.
Each method has its pros and cons, so there is still no generally accepted one. In practice, they most often resort to using a method that they have a high level of mastery over, as well as one that meets the project standards, and sometimes even combine two or more schemes for the most accurate assessment of the condition. The main thing is to find a competent specialist who will help you carry out all the necessary activities for risk analysis. And remember that quite often you have to resort to a combination of methods, while one single one will not be able to show the full picture.
In essence, the specialist will have to prepare for any force majeure situation, have a plan for its solution in hand. The employee must have everything necessary in advance to neutralize or minimize negative consequences. This is achieved as follows:
Consider the option in which philippines email list competitors enter the sales market with similar and more serious products, against which yours will lose. In such a situation, you can try to reduce the cost of the product in advance to attract customers or speed up the implementation of your project. This way, you can get ahead of competitors, enter the market earlier and recommend your own product.
Plan your business carefully. Think through all the deadlines that the project should have, find suppliers in advance, assemble a team that would completely and entirely suit you. The speed and coherence of the company's work depend on this. If you are afraid that employees will not want to obey, either introduce a system of fines, or you will have to say goodbye to part of the team.
Think about the price range in advance. This will help you when you slow down production: you will be able to sell the product in greater quantities at a lower price, but in the end it will not affect the financial part of the project. Sometimes it is worth including an adjustment for financial costs in the final cost of the product.
Designate specific stages in your business. Sum up the interim results after each one, determine which goals have been achieved and which have not yet been achieved, how appropriate it is to move on to the next point, etc. The effectiveness of this approach will increase many times over.
Basically, in such a model, you represent the project as one big scheme, where each branch from the main line represents a goal that simply must be achieved. This is done so that when risks arise, you can find an intermediate stage from which it will be easier to start working, or even a solution to the problem that has arisen with the achievements already achieved.
Absolute indicators of financial stability
Source: shutterstock.com
Risk betting method
This approach involves determining a monetary rate that will indicate the probability of an event occurring. The amount is the maximum income that can be obtained from alternative sources. For example, you can assess the risk of launching a production chain with a new product by comparing it with the alternative of buying new equipment and launching a line on it. Each of the options is assigned a certain rate.
This method is visual, which is its undoubted advantage, but the lack of the ability to see the risk in the long term is a significant drawback (often the data changes during implementation). It is also necessary to correctly select an analogue for business risk analysis, since the elements must be comparable. The disadvantages of this method cannot make it the main one for research, so it can only be additional.
Each method has its pros and cons, so there is still no generally accepted one. In practice, they most often resort to using a method that they have a high level of mastery over, as well as one that meets the project standards, and sometimes even combine two or more schemes for the most accurate assessment of the condition. The main thing is to find a competent specialist who will help you carry out all the necessary activities for risk analysis. And remember that quite often you have to resort to a combination of methods, while one single one will not be able to show the full picture.