- 1). Identify all potential threats and risks facing your project. Write out possibilities of operational disruptions and technical setbacks. Identify all human and political threats -- from death to tax changes -- and natural disaster possibilities. Analyze project risks -- from delays and complications to cost over-runs.
- 2). Compare your risk assessments against the amount of capital your project requires. The more money your project needs and the more advanced the level of potential jeopardy it faces -- the higher the risk. Alternatively, the less money needed paired with reduced chance for peril marks the venture as a low risk project.
- 3). Calculate a perceived risk value. Multiply the probability of a particular risk -- in percentage terms -- by the overall cost of the project. The total equals the perceived financial amount you stand to lose under these conditions. Establish a financial-loss threshold with project partners to determine whether your project measures at low or high risk.
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