© 2002 Corporate Executive Board
Risk Identification Workshops
Identifying Business Risks
Risk Brainstorming Workshops
Diageo
1 Workshop Inputs
Strategy BU Risk Benchmarks— General business
Plan
risks identified for BU’s strategic plan serve
as a baseline for the BU’s acquisition
4 Output: Aggregated Risk Matrix
Risk
Headlines
Risk Catalog—Workshop draws on catalog
of over 80 key risks organized by category
Critical Medium High Critical
(compliance, finance, operations, etc.)
(3)
Impact Major Low Medium High Risk Specialists—The Business Risk Team has
(2)
10 to 12 risk specialists assigned to different
functional areas who serve as a resource 2 Risk Workshop
Manageable Low Low Medium
(1) throughout the project and lead the workshops
Remote Possible Likely
(1) (2) (3)
Likelihood
Risk Measurement Criteria Bands • Size and Composition—Fifteen managers
Impact
3 Risk Breakout Sessions across functions and geographies, including
Impact on
Score Bands Description Economic Profit
Medium High Critical
acquisition integration team members and risk
1 Manageable
Small impact, able to recover from
with minor effort
< 5%
Low
Low
Medium
Low
High
Medium
specialists
2 Major
Medium to serious impact, able to
5–20%
• Exercises—“Post-it Note™”–mapping of risks,
recover from with significant effort
focused on “value destroyers” and potential
Very serious impact, very hard to
3 Critical
recover from
> 20% missed opportunities; the workshop is facilitated
• Business Risk specialists meet with by the Business Risk Team
Likelihood
Chance of individual team members to identify • Duration—Half day
Score Bands Description Occurring
subcomponents of high-level risks • Number of Risks Identified—15 to 20
Possible but not expected to occur
1 Remote < 10%
during the period of exposure • Early assessment of risk magnitude
2 Possible
Possible and could occur during
10–50% for each factor
the period
3 Likely An event that is expected to occur > 50% • Five to 10 risk subcomponents
identified
Source: Diageo; Corporate Strategy Board research.
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