When all the information is available to the risk manager, it will be cumbersome for the risk manager to clearly identify that where the risk lies. If the wrong risk has been identified then all the practice of having the risk management process will be wasted. This is the challenge for the risk manager to extract out the useful and the best information from the available information and then shape the information in such a way, that it useful in identifying the risk. Risk manager should also make sure that the information he acquires is from a trusted source, wrong information will lead to a wrong risk management process.
There are various techniques which are used to identify the risk, to decide which technique to use will depend upon certain questions:-
1- What are the risks involved?
2- What could happen?
3- When will it happen?
4- What would be the impact of that risk if there is worst case scenario?
5- Where do the risk lies?
6- How can the risk information be shaped for making any key decisions?
7- How could the people and organization be affected by the risk?
These are the key questions which have to be kept in mind before selecting and applying any technique of risk management. Following are few major techniques of risk management:-
1- Flow Chart
2- Organizational Chart
4- Physical Risk Inspection
5- Fault tress.
6- Hazop Study.
7- Safe Guards
8- Business Impact Analysis
9- Credibility Test also known as quality test