Building a Risk and Mitigation Strategy

When I discuss risk and mitigation with teams, I emphasise the connection between risks, mitigation strategies, and the overall solution. Instead of simply presenting a risk and mitigation slide at some point during the presentation, I aim to incorporate this information into the analysis and implementation phases. This approach ensures that risks are discussed as part of the analysis and that mitigations are integrated into the implementation plan.

The goal is to present the most significant strategic risks and explain how to control them. To summarise, I recap the information previously presented. When analysing risks, we need to differentiate between impact and probability. It's crucial to recognise that we can primarily control the probability of a risk, not the impact itself, which tends to be constant. Effective mitigations should aim to reduce the likelihood of risks occurring.

Additionally, it’s vital to present risks in order from highest to lowest impact and probability. For example, risk number one should be the one with the most significant impact and highest probability, followed by risks two, three, and so on. In this context, it's important to ensure that the key risk is at the top of the list. If a presentation mistakenly places a lower-priority risk above a higher-priority risk, that should be corrected.

When discussing risks on the slide, these should have already been outlined during the analysis phase, reinforcing why a particular solution is the best choice. Mitigation strategies should also appear in the implementation section, demonstrating how risks are being addressed throughout the plan.

A takeaway message should reflect on the strategic risks as we progress. It's essential to focus on strategic risks because they can hinder the execution of the overall strategy. These strategic risks may vary depending on the situation. For instance, in an e-commerce strategy, cybersecurity becomes a significant risk. In an NFT strategy, ownership rates are a concern. Similarly, when adopting a new product, customer adoption presents a risk. A detailed mitigation plan should accompany these risks in the implementation phase.

For example, if there is a potential delay in constructing a new NHL arena, additional funding channels could be utilised to secure immediate contracting services, allowing us to address any construction schedule issues effectively. The strategic risk in this case is the timely completion of the NHL arena, and having extra funds available can help us resolve delays and keep the project on track.