1132 Risk Stakeholder 342381a4

# Risk & Stakeholder Frameworks

## Risk Assessment Matrix

**Use when:** Prioritizing risks, resource allocation for risk mitigation

### Structure

```
           │ Unlikely │ Possible │ Likely │ Almost Certain │
───────────┼──────────┼──────────┼────────┼────────────────┤
Catastrophic│  Medium  │   High   │Critical│    Critical    │
───────────┼──────────┼──────────┼────────┼────────────────┤
Major      │   Low    │  Medium  │  High  │    Critical    │
───────────┼──────────┼──────────┼────────┼────────────────┤
Moderate   │   Low    │   Low    │ Medium │      High      │
───────────┼──────────┼──────────┼────────┼────────────────┤
Minor      │   Low    │   Low    │  Low   │     Medium     │
───────────┴──────────┴──────────┴────────┴────────────────┘
               LIKELIHOOD →
```

### Risk Score Calculation

```
Risk Score = Likelihood × Impact

Likelihood:
1 = Rare
2 = Unlikely
3 = Possible
4 = Likely
5 = Almost Certain

Impact:
1 = Negligible
2 = Minor
3 = Moderate
4 = Major
5 = Catastrophic
```

### Risk Response Strategies

| Strategy | Description | When to Use |
|----------|-------------|-------------|
| **Avoid** | Eliminate the risk entirely | High impact, high likelihood |
| **Mitigate** | Reduce likelihood or impact | Medium-high risks |
| **Transfer** | Shift risk to another party | Insurable risks, outsourcing |
| **Accept** | Acknowledge and monitor | Low risks, unavoidable risks |

### Risk Register Template

| Risk ID | Description | Likelihood | Impact | Score | Response | Owner | Status |
|---------|-------------|------------|--------|-------|----------|-------|--------|
| R001 | [Description] | 3 | 4 | 12 | Mitigate | [Name] | Open |
| R002 | [Description] | 2 | 5 | 10 | Transfer | [Name] | In Progress |

### Common Business Risks

| Category | Example Risks |
|----------|---------------|
| **Strategic** | Market changes, new competitors, technology disruption |
| **Operational** | Process failures, supply chain, system outages |
| **Financial** | Cash flow, credit, currency, interest rates |
| **Compliance** | Regulatory changes, data privacy, labor laws |
| **Reputational** | PR crisis, customer complaints, social media |

---

## Power-Interest Grid (Stakeholder Matrix)

**Use when:** Stakeholder management, project planning, change initiatives

### The Four Quadrants

```
High    ┌───────────────────┬───────────────────┐
        │   KEEP SATISFIED  │   MANAGE CLOSELY  │
Power   │                   │                   │
        │   Low Interest    │   High Interest   │
        │   High Power      │   High Power      │
        ├───────────────────┼───────────────────┤
        │      MONITOR      │   KEEP INFORMED   │
        │                   │                   │
        │   Low Interest    │   High Interest   │
Low     │   Low Power       │   Low Power       │
        └───────────────────┴───────────────────┘
                   Low              High
                       INTEREST →
```

### Engagement Strategies

| Quadrant | Strategy | Actions |
|----------|----------|---------|
| **Manage Closely** (High Power/High Interest) | Active engagement | Regular meetings, involve in decisions, address concerns immediately |
| **Keep Satisfied** (High Power/Low Interest) | Meet their needs | Periodic updates, don't overwhelm with details, engage when needed |
| **Keep Informed** (Low Power/High Interest) | Communication | Regular updates, use as advocates, gather feedback |
| **Monitor** (Low Power/Low Interest) | Minimal effort | General communications, monitor for changes |

### Stakeholder Analysis Template

| Stakeholder | Role | Power | Interest | Quadrant | Strategy | Key Concerns |
|-------------|------|-------|----------|----------|----------|--------------|
| [Name] | [Role] | H/M/L | H/M/L | [Quadrant] | [Strategy] | [Concerns] |

### Stakeholder Mapping Process

1. **Identify stakeholders** - Who is affected by or can affect the project?
2. **Assess power** - Decision authority, resources, influence
3. **Assess interest** - How much do they care? Positive or negative?
4. **Plot on grid** - Position each stakeholder
5. **Plan engagement** - Tailored approach for each quadrant
6. **Review regularly** - Power and interest can shift

---

## Salience Model (Alternative)

**Use when:** More nuanced stakeholder classification needed

### Three Dimensions

| Attribute | Definition |
|-----------|------------|
| **Power** | Ability to impose their will |
| **Legitimacy** | Appropriateness of their involvement |
| **Urgency** | Time-sensitivity of their claims |

### Seven Stakeholder Types

```
                    Power
                      │
            ┌─────────┼─────────┐
            │    Dominant       │
            │   (Power+Leg)     │
            └─────────┬─────────┘
                      │
    Discretionary ────┼──── Dangerous
    (Legitimacy)      │      (Power+Urgency)
                      │
                   ───┼───
                      │
    Dependent ────────┼──── Demanding
    (Leg+Urgency)     │     (Urgency)
                      │
            ┌─────────┴─────────┐
            │    Definitive     │
            │ (All three)       │
            └───────────────────┘
```

| Type | Attributes | Response |
|------|------------|----------|
| **Definitive** | Power + Legitimacy + Urgency | Highest priority |
| **Dominant** | Power + Legitimacy | Important, plan for urgency |
| **Dangerous** | Power + Urgency | Handle carefully |
| **Dependent** | Legitimacy + Urgency | May seek alliance with powerful |
| **Dormant** | Power only | Monitor, can become active |
| **Discretionary** | Legitimacy only | Optional engagement |
| **Demanding** | Urgency only | Annoying but not dangerous |

---

## Communication Planning

For each stakeholder group, define:

| Element | Description |
|---------|-------------|
| **Message** | What do they need to know? |
| **Channel** | How will you reach them? |
| **Frequency** | How often? |
| **Owner** | Who is responsible? |
| **Feedback** | How will you get input? |