A good Recovery Plan includes Risk Management

A well planned recovery path includes risk management.

Mouse trap with cheese and "free cheese" sign - how will you manage risk? Risk management.
Goals and risk

First pick your goal. What does that outcome feel like? Do you like it? Is it really what you want? How far away is it? Check out more on Recovery [Link] to learn about choosing goals.

Once you have worked out your goal, it is time to identify the risks involved. While it is tempting to try to list every possibility, it is important not to get too bogged down on tiny details.

In risk management there are three important considerations.

  1. How likely is it to happen?
  2. How bad is the consequence?
  3. Is there something reasonable I can do about it?

The high the likelihood and the higher the consequence, the greater the risk needs managing. However it is important to identify risks that can actually be managed.

For example, a plane landing on the building I am in is possible, but very unlikely. The consequences would be very high – catastrophic would be a good description. There is nothing I can do about it.

How will you manage these risks to get your goal? We can affect the above questions in the following way:

  1. How likely is it to happen?
    What can I do to reduce the likelihood if this is high?
  2. How bad is the consequence?
    What can I do to reduce the severity of the consequence if it is high?
  3. Is there something reasonable I can do about it?
    What resources are needed to shift the likelihood and the consequence, and do I have them?

By having an identified goal we can begin to identify the risks involved in achieving this goal. By breaking down those risks into categories and into methods of management, we shift the focus from “it is too risky” to “how will I get what I want?”

This is a brief introduction to the concepts of risk management. For a more complete run down, check out the Wikipedia entry.