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Risk may be managed in a number of ways: • By using existing assets: Here existing resources can be used to counter risk. This may involve improvements to existing methods and systems, changes in responsibilities, improvements to accountability and internal controls, etc. • By contingency planning: You may decide to accept a risk, but choose to develop a plan to minimize its effects. A good contingency plan will allow you to take action immediately, with the minimum of project control. • By investing in new resources: Your risk analysis should give you the basis for deciding whether to bring in additional resources to counter the risk.

Selection and Evaluation 6. Planning 7. Selling of the Idea 8. Action By moving through these stages you ensure that you solve the most significant problems with the best solutions available to you. This process can help you to be intensely creative. = pìÄÅçåëÅáçìë=mêçÄäÉã=pçäîáåÖ=ENKNNF= Function: Using all your brain to solve problems How to use tool: Often when you have immersed yourself in a difficult problem, you will have found that the answer pops into your mind when you have relaxed or looked at something else.

This course, or parts thereof, may not be reproduced in any form without the permission of the publisher. com Figure 2 Example Decision Tree: Should we develop a new product or consolidate? 4 g oo d p oo r $1,000 Calculating Tree Values Once you have worked out the value of the outcomes, and have assessed the probability of the outcomes of uncertainty, it is time to start calculating the values that will help you make your decision. Start on the right hand side of the decision tree, and work back towards the left.

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