Risk mapping is a new concept we use to illustrate the risk associated with an organisation, project or other system. It enables you to understand the system better: what’s important, what’s not, and whether the risk picture is comprehensive. For a seasonal illustration go to the bottom of this Risk Bite.

Risk mapping is primarily qualitative and its benefits are:

to improve your understanding of the risk profile and your ability to communicate it

to force you to think through rigorously the nature and impact of the risks that have been identified

to improve your risk models by building an intermediate link between the risk register and the model

to improve your risk register by basing it on a more transparent and accurate understanding of the system.

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The chart below shows a simple risk map for a proposed deal. The risk register for this system contained several risks but we can see they reduce to two fundamental risk events. Based on this we can develop an improved risk model and risk register.

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(Flash and ActiveX needed)

We call it an approach rather than a technique because at the moment it is a way of looking at a system which is supported by a range of ideas and tools. As our experience grows we hope to be able to provide more definitive guidance on the way to map your risks. For more details see our risk mapping page.

Risk at Xmas!

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(Flash and ActiveX needed)

The chart above is a sketch of the typical risks surrounding Christmas. It's quite a complicated map showing how many issues are interlinked. It's the sort of thing you might sketch out on a piece of paper, and which rapidly develops a spaghettti-like complexity - even with substantial use of modules.

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(Flash and ActiveX needed)

This chart shows exactly the same chart rearranged in a hierarchical way. This makes it easier to read and links it more directly to a risk register format.