Managing risk with the NASA Risk Matrix - Deepstash
Managing risk with the NASA Risk Matrix

Managing risk with the NASA Risk Matrix

Curated from: nesslabs.com

Ideas, facts & insights covering these topics:

5 ideas

·

9.77K reads

15

Explore the World's Best Ideas

Join today and uncover 100+ curated journeys from 50+ topics. Unlock access to our mobile app with extensive features.

Managing Risk Like NASA

Managing Risk Like NASA

NASA is routinely dealing with problems that are as complex as they can get. Apart from having a process about measuring creativity, or a detailed checklist to take stock of every minute detail, they also have a Risk Matrix, a powerful tool that helps to identify and manage risk.

It is a diagram that provides the ‘likelihood score’ of the potential risk, when all the risks have been identified, and has a template that makes stating the risk easy.

484

2.17K reads

Frederick Wilcox

"Progress always involves risks. You can’t steal second base and keep your foot on first."

FREDERICK WILCOX

557

3.45K reads

The Risk Template

NASA identifies any potential risk using the following variables:

  1. Condition: A fact-based situation that is causing concern or doubt.
  2. Departure: The variation or potential change that the condition will cause.
  3. Asset: The project which gets delayed or affected.
  4. Consequence: The potential damage or negative impact that the ‘condition’ can have on the ‘Asset’.

The Risk Assessment has to only include facts, and not speculations or assumptions, while ensuring that the risk identification does not introduce new risks.

462

1.43K reads

NASA Risk Matrix: Likelihood And Consequence

NASA Risk Matrix: Likelihood And Consequence

The two main factors that impact the level of risk:

  1. The Likelihood: How likely is the risk of the potential change to occur.
  2. The Consequence: The level of the impact of the departure from the original plan.

The consequence ‘scorecard’ evaluates the likelihood of the risk and the level of impact (like loss of human life, or the impact on the main goal) to determine the severity of the risk.

475

1.48K reads

Mitigating Risk

Mitigating Risk

Once a Risk Score is calculated based on the Risk Matrix, NASA recommends the following:

  • Lowest Risk: Put the risk on the watchlist and re-assess on a regular basis.
  • Low Risk: Perform further research and re-evaluate risk trying to better understand it, and facilitating a reduction of the same. Write a ‘risk mitigation plan’ and share it with the team.
  • Medium Risk: Along with the mitigation plan, perform continuous assessment of the risk, assign resources, and keep everyone informed.
  • High Risk: Immediately escalate to the higher authorities, letting all the stakeholders know of the same.
  • Highest Risk: Consider changing the original plan of action and shelving or delaying the project right away. Speed is of the essence and hard but unavoidable decisions have to be made to minimize damage and loss of life.

486

1.22K reads

IDEAS CURATED BY

cartervx

My math book needs to commit suicide. It has way to many problems.

Carter X.'s ideas are part of this journey:

The Psychology Of The Ultimate Entrepreneur

Learn more about problemsolving with this collection

The importance of perseverance

How to embrace failure as a learning opportunity

The power of innovation and creativity

Related collections

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates