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Stage 4: Manage Risk to Handle Uncertainty ◾ 113
6.2.1 Calculation
Aggregate the number of assumptions which have minor impact on the busi-
ness. You’ll have the accumulated value or “Minor Risk Impact Value.”
Aggregate the number of assumptions which have major impact on the
business and multiply that number by 5. You’ll have the accumulated value
of “Major Risk Impact Value.”
Aggregate the number of assumptions which have critical impact on the
business and multiply that number by 25. You’ll have the accumulated value
of “Critical Risk Impact Value.”
Now add the three Impact Values together to find the Risk Score.
Risk Score = Minor Risk Impact Value + Major Risk Impact Value
+ Critical Risk Impact Value
The maximum Risk Score should be 100. At the beginning of the busi-
ness, the Risk Score is expected to be greater than 100, as there are many
assumptions in each stage of the business. The whole idea is that the team
should be aware of all the assumptions, and therefore the risks, so that
additional effort could be made to mitigate those risks as the idea moves
forward. This Risk Score can be shown on a Risk scale as follows so that the
team has a clear idea of what needs to be done (Figure 6.4).
Figure 6.4 Risk assessment.
