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.

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.

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