Tool:Risk/Value

The purpose of this tool is to analyze the risks and value of current or proposed projects or processes.

• This tool can be used in several ways: To analyze new projects or processes or to explain priorities within projects or processes.
• Some risks included: The unknowns, unsolved technical and human problems, potential costs, low political support.
• Some values are : The results achieved, problems solved, funding, acquired, support gained, product or process created, tested, or ready.

How to Use This Tool

1. Consider an ongoing process you must manage or a current or proposed project.
2. Begin by drawing line segments at the foot of the Risk bar for each known risk. Consider Risks that must be managed during the life of the project. Draw the segment size in estimated proportion to the importance or size of the specific Risk.
3. Begin by drawing from the foot of the Value bar. List the Values already achieved. Draw a segment size in estimated proportion to the importance or size of the specific Value.
4. Next, show Risk segments that may migrate to the value side once problems are solved. Some solved Risks will never make it to the Value side because they can't make a profit. They allow you to complete the project without reappearing on the Value side.
5. Use solid line segments to indicate current actual levels of Risk and Value. Then use dotted segments to show expected levels of Value after you have removed obstacles or met requirements.