Risk Analysis

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Classified, and

- Managed,

so that they can be avoided or that response plans and fallback positions can be developed so that corrective action can be implemented quickly and effectively. The post-mortem of unsuccessfulprojectsreveals, more often than not. that failuresare attributable torisks that could have been avoided,or theirimpact mitigated, had they been identified during the early project stages. Frequentlythose failuresare blamed on unforeseeablerisks. However,as experienced venture and project managers have learned the hard way. even if some risksare unavoidable, there is nosuchthingasunforeseeablerisks, only unforeseen ones. The ultimate goal of risk analysis and risk management is to eliminate unforeseen risks and avoid orminimize the impact of all foreseeable ones.

8.2 Risks at Business Strategy Level

Risks at this level are mainly those that could threaten the business values:
- Achievement of corporate goals. -

Business continuity. Company stockprice. Stockholder value.

- Public acceptance of a new project. - Competitors responses.

-

Nationaleconomy. World economy.

- Rate of inflation. - Interest rates. -

Availability of money.

- Corporationcash flow.
-

etc.

Assessment and management of these risks are the responsibility of top corporate management andfall outside of the scope of this book.