Risk Monetization

What's the Point?Skipping the Fundamentals for NowSome AcronymsA Focus on Success and Value-Not on Reducing UncertaintyMany Contributing DisciplinesMany Views of RiskAn Aim to Integrate RisksSurprise! Integrated Impact Is Almost Always AlarmingWhere We Would Like to Be

How Risk Information Traditionally Is Handled-The Good, the Bad, and the UglyRisk Registers and Their Many Implications

The FundamentalsDecide for Whom You Are (Really) WorkingBe Clear as to "What Is the Question?"Be Certain of the Right Level of SupportWhat I AssumeSome Definitions

Spectrum of Application for MonetizationAcquisitionsDivestituresEnvironmental ProjectsHealth and SafetyRisk Monetization of Legal MattersOther Project Types

Without Risk Monetization, What Typically Is DoneProject EnvisionedIncomplete RepresentationDon't Tell Me What to Do!Poor Translation of Qualitative Data into Quantitative DataOne, Two, Three-Go!Little or No Risk IntegrationUse of the "Boston Square"Data Gathered from Those with Vested InterestFaulty ForecastsLack of OrganizationMitigation of ThreatsInitial Budget EstimatesInitial Schedule EstimatesSensitivityRisk Interpreted as UncertaintyPoor Risk CommunicationPiecemeal PresentationsDetermining the Reduction in Probability and/or ImpactNot a Consistent Deciding BodyRewarding Activity

One Route to Risk Monetization-The "Perfect World" or "High Control" PathTry to Be Unfashionably EarlyAppoint a Risk-Process ProponentHave "The Talk"Don't Underestimate the UpheavalDecide How Sensitive "Soft" Risks Will Be HandledHave the Conversation about Risk AcceptanceDetermine What Has Already Been Done and Establish RapportEstablish a High-Level Story about Why This Is Being DoneDesign a Risk-Monetization Process That Fits with the Existing Culture and WorkflowsEstablish That There Will Be Only "One" Risk RegisterPrepare for Risk-Identification Workshop (RIW)Opening the RIWStart Identifying RisksAssessing, Valuing, and Ranking Risks Prior to MonetizationMitigation/Capture ActionsSome Post-RIW ActivitiesImplement Sustaining Actions

Another Route to Risk Monetization-The "Already in Progress" or "Imperfect World of Low Control" PathSome of the "Perfect World" Stuff Applies"Risk Analyses" Already Done

Risk MonetizationA Warning and Justification for MonetizationSetting the StageThe Monetization Process

Appendix: Summary of the Journey from Risk Assessment to Monetization and More

Selected Readings appear at the end of each chapter.