Tools and techniques for risk identification

Risk identification is the process of finding and documenting the risks that may affect the project. It is done at the start and repeated during the project. The output is the risk register.

Tools and techniques

1. Documentation review: study the project plan, drawings, contracts, assumptions and previous reports to find inconsistencies and weak points.
2. Information gathering techniques:
   • Brainstorming: a team (engineers, client, contractor) freely lists possible risks.
   • Delphi technique: experts give anonymous opinions in rounds until they reach agreement.
   • Interviews: talking with experienced people and stakeholders.
   • Root cause analysis: find the basic cause behind a risk, and then find further risks arising from it.
3. Checklist analysis: a list prepared from similar past projects (e.g. hydropower or road projects) is checked item by item.
4. Assumption analysis: test whether the assumptions (e.g. availability of land, material prices) are valid and complete.
5. Diagramming techniques: cause-and-effect (fishbone) diagrams, flow charts, influence diagrams.
6. SWOT analysis: the strengths, weaknesses, opportunities and threats of the project are used to find risks and opportunities.
7. Expert judgement and lessons learned: use experts and the records of earlier projects.
8. Prompt list / PESTLE: political, economic, social, technological, legal and environmental categories are used as prompts.

The best result comes when several techniques are combined and the project team, experts and stakeholders are all involved.