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The unlikely medium likelihood quite likely very likely The idea is simply to give you a way of ranking each risk by the likelihood of it happening. For example if one of your key clients has been late paying invoices before then you could score that risk as a 4 or 5.  other hand would probably score as very unlikely for most businesses. The impact would of course be high but dont worry about that for now well cover impact in the next section. Right now just go through the list of risks you identified in Step 1 and assign an approximate likelihood score to each one. It sounds simple but actually this can be one of the hardest steps especially for less experienced business owners.



If most of the things on your list have never happened before how can you decide how likely they are to happen in future This is where a good network Job Function Email List of contacts can help you. Even if the things on your list have never happened to you its a sure bet that theyve happened to someone else at some time. So talk to other people in your field particularly those with a decade or two of experience. Chances are theyll have seen most of the things that can go wrong and can advise you on the likelihood of each one. You can also do your own research on particular issues.







Where useful statistics may be available. In the case of a technical issue like a server outage or a problem with your website host for example you can contact your provider and ask how often things like that happen. If your website host promises 99.9 up time you can safely mark that as a low risk. If you still need help you could consider hiring a risk management consultant. Therell be a fee of course but it may be worth it if they help you identify and manage.