Risk Identification & Assessment - New Product Launch
The risk identification and assessment process is a critical part of effectively managing risks at a project level. Risks are identified, and then classified by risk category. Each risk is then assessed based on its impact and likelihood, and prioritized in order to direct management focus toward the most important (Deloitte & Touche LLP, 2012).
Our Risk Identification and Assessment - Change Initiative model follows the steps below:
- Identify potential risks that could impact your new product launch and classify each risk into categories.
- Combine to eliminate duplicates and move forward with only unique risks.
- Rate each risk based on impact and likelihood.
- Prioritize to ensure the right risks are managed going forward.
- Develop a specific action plan to address the high-priority risks.
This model is intended for Directors of Strategy, Directors of Product Management, and Product Managers.
To survive in the fiercely competitive market (local and global), businesses are under continuous pressure to innovate, develop new products, and please their consumers (Lee, 2017). Like any business operation, launching a new product is a risky exercise (Schecter, 2014). Perhaps your intellectual property is not protected or your competitor is one step ahead in the game. Apart from known risks, businesses are also threatened by unforeseen economic and political changes that could be devastating. In order to be prepared and cover all bases, it is important for your organization to develop strategic plans to address all potential risks and lessen their impact on the product launch and success.
1) NOODLE & TAG: Identify and categorize the key risks that could impact your new product launch.
2) COMBINE to eliminate duplicates and move forward with only unique risks
3) MULTI-CRITERIA RATE each risk based on Impact and Likelihood. In the comments section, provide rationale for why each risk was rated the way it was.
4) PRIORITIZE: Identify high priority risks for management attention.
5) ACTION PLAN: Develop an action plan to address high priority risks.
- Prioritized list of risks to receive management attention
- Critical thinking skills developed that enable a risk culture
- Valuable insight into why risks were rated the way they were
- Shared understanding and alignment on risks in the merger/acquisition
BENEFITS & IMPACT
This exercise will enable:
Quality - Gain critical insight into your organization and proactively manage the risks that impact achievement of strategic goals – no surprises. Increased perspectives will reduce risk.
Efficiency - Engage busy stakeholders when it’s convenient for them to contribute – 24/7, reducing meetings and bringing the right people to the table.
Engagement - Conversation analytics allow individual stakeholders to know how they rated risks versus how others did, igniting rich discussion and deeper alignment. Provide a safe space for stakeholders to evaluate and provide candid thoughts and rationale.
Agility - Develop a shared understanding about the organizations or departments key risks. Evaluate and focus management attention and resources on the most important risks.
Deloitte & Touche LLP. (2012). Risk assessment in practice. Deloitte. https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Governance-Risk-Compliance/dttl-grc-riskassessmentinpractice.pdf
Lee, J. (2017). The future consumer - Consumer driven innovation. Deloitte Canada. https://www2.deloitte.com/ca/en/pages/consumer-business/articles/consumer-driven-innovation.html
Schecter, M. (2014). Risk Analysis in Product Management: How Risky is Your Portfolio? LinkedIn. https://www.linkedin.com/pulse/risk-analysis-product-management-how-risky-your-marty-schecter/