Risk Management

      Methods and Tools

CAUSE AND EFFECT ANALYSIS

What Is It

Cause and effect analysis is a process for graphically representing the relationships between a risk (effect) and the possible factors that can cause it. The analysis start out with the risk and participants identify and verify the factors which are causing the risk or set of risks, or even the other factors.

When To Use

Use this method
  • To identify and verify the factors which are causing a risk or set of risks for planning a mitigation strategies.
  • With a diagram, for example a "fish" diagram, where the risk is found in a box to the right which is the head of the fish. The bones of the fish show the organized causes (or factors that can cause the risk).

Benefits

This method
  • Displays the relationship and interrelationship of the risk and the factors causing it which leads to successful planning for mitigation strategy.
  • Uses Brainstorming method and so has the same benefits, as in it
    • Generates a lot of ideas in a short amount of time.
    • Does not require training of the participants.
    • Bashful yet creative people can be coaxed to come up with good ideas.
    • Is an enjoyable exercise.
  • By using an easily understood diagram, provides an easy reference or summary of data without lengthy paragraphs.
  • Can be done by a group or by an individual.