Everything is rated on an ABCD scale; where A is always good and D is always bad. This provides an instantly understood assessment on each assumption, forces people to express their feelings (ie there is no “medium”) and effectively provides guidance on how best to attack the risk (i.e. stabilise the assumption or de-sensitise the project to the effects of the assumption going wrong).
Risks (ie “Risky Assumptions”) are therefore identified through individual assessment of Sensitivity and Stability. However, further risky assumptions are identified by cross-communicating the non-risky assumptions to other stakeholders. In this way, critical risks that would never have been identified by traditional methods are captured and mitigated.
The risky assumptions identified are reprioritised to provide simple but rigorous summary risk profiles that senior management can quickly assimilate and provide an accurate prioritised picture of the project’s exposure to risk.