After all uncertainties are identified and documented, a team should attempt to understand what each uncertainty means. For example, does each specific unknown impact the cost of the project? Will the uncertainty cause delays in producing project deliverables?
For each line item describing a potential problem, a study of the likelihood of that potential problem should be completed. At this time, each risk event should be rated as probably, very likely or unlikely to happen. At the same time, the impact of each event should be rated in steps from marginal to catastrophic.
The final step of analyzing risk involves deciding on an approach for mitigating each event. For example, events can be deflected, avoided or controlled.
To help with the risk analysis, every risk event can be listed in a table with its likelihood, strategy, and contingency plan. With these details conveniently organized, the final stage in the assessment and prioritization can be more profitable.