Risk identification approaches and the number of risks identified: the use of work breakdown structure and business process

Abstract

Losses and damages that any company or organization experience is usually caused by some unidentified risks that hit them unprepared. Some companies even must close their business or discontinue their operation due to the huge negative impact of the risk that hit them. Knowing the risks that an organization face is important. Risk needs to be identified properly. Though there had been some approaches a person can use in identifying risk, most of those approaches are complex, require several people involved, are too subjective, and are not able to identify unseen risks. Therefore, the purpose of this study is to know which risk identification method can identify more risks when knowledge of the context is controlled. The study made use of experimental research design with the use of covariance analysis in analyzing the data. With a 95% level of confidence, it was found that risk identification methods affect the number of risks identified. The business process approach seems to identify more risks than the work breakdown structure approach and placebo. The step-by-step procedures in doing the business process approach and work breakdown structure approach are also introduced in this study.