How do you identify your risks and do you BRAG about them? If not, you should!
Understanding and managing risks is a great skill to master for your professional life – especially if you are a Risk Manager, Project Manager and other likes of whip-crackers. But that’s not where the usefulness of risk management ends. Think of how you identify and navigate risks in your life, are you doing well or could you do better?
Let’s BRAG about them. It’s simple, start by listing them down…then give them a total risk score. Let me show you how you get to it… which is simply by multiplying the likelihood score by the impact score (likelihood x impact).
Sounds complicated? Not at all. But first…
What is risk?
Usually risks are those uncertain but potentially negative and derailing events that could happen but haven’t happened (yet), be it at work or in your life. If they HAVE happened then you’ve got issues! I’m not just saying that – risks that have materialised are known as issues (and that’s a topic for another day).
How to get that total risk score
First… How likely is the uncertain event you’ve identified going to happen (on a scale of 1 – 10 with 1 being most unlikely, 10 most likely)? For example, say based on your current weather the likelihood it will snow next weekend and cause your flight to be cancelled is 9
Second… How bad would be the impact if this happened (on a scale of 1 – 10 with 1 being most unlikely, 10 most likely)? Say your travel insurance doesn’t cover cancellation, the impact on you would certainly climb up to 9.
Third… Now get the overall risk score. We multiply 9×9 to get a whooping 81 out of 100!. Here you’re almost certain your travel plans are at risk and it’s time to BRAG about them!
BRAG
BRAG is all about giving a well-considered status to your risk. It can help you realise when you’re heading straight to the edge of a cliff (figuratively) and why you should definitely take action, even if you choose to keep calm.
BRAG is a colour-coding system to show the status of your risks. More than that, it is a quick visual tool to present and manage risks.
While the RAG in BRAG is quite standard and similar to the traffic lights system, RED, AMBER, GREEN – the B can be whatever colour you want (Beige, Blue, Black, Burgundy, Brown – whatever you choose. I choose Black(as in black-out) in which case BRAG will stand for…
Black status shows the threat is no more because the risk may have been dealt with, has passed or dissipated. You can simply black-out this risk…and relax!
Red status shows the threat is very imminent, critical and urgent action is needed. Act quickly and decisively to mitigate it. Failure to will mean dealing with the consequences of what’s coming.
Amber status shows that whilst the threat is escalating, it is somewhat under control possibly because you or someone else is acting on it. By all means don’t take your eyes off the ball!
Green status for reassurance that the threat is still likely but definitely under control and is being handled with confidence. Soon enough you might black-out this risk.
Use this simple BRAG process to get you thinking about and staying ahead of those nasty surprises at work or in your life… and if they do come, stay calm and take action. Goodluck!
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