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
- Identify stakeholders - Who is affected by or can affect the project?
- Assess power - Decision authority, resources, influence
- Assess interest - How much do they care? Positive or negative?
- Plot on grid - Position each stakeholder
- Plan engagement - Tailored approach for each quadrant
- 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? |
1---2name: 1132-risk-stakeholder-342381a43description: Risk & Stakeholder Frameworks4---5# Risk & Stakeholder Frameworks67## Risk Assessment Matrix89**Use when:** Prioritizing risks, resource allocation for risk mitigation1011### Structure1213```14 │ Unlikely │ Possible │ Likely │ Almost Certain │15───────────┼──────────┼──────────┼────────┼────────────────┤16Catastrophic│ Medium │ High │Critical│ Critical │17───────────┼──────────┼──────────┼────────┼────────────────┤18Major │ Low │ Medium │ High │ Critical │19───────────┼──────────┼──────────┼────────┼────────────────┤20Moderate │ Low │ Low │ Medium │ High │21───────────┼──────────┼──────────┼────────┼────────────────┤22Minor │ Low │ Low │ Low │ Medium │23───────────┴──────────┴──────────┴────────┴────────────────┘24 LIKELIHOOD →25```2627### Risk Score Calculation2829```30Risk Score = Likelihood × Impact3132Likelihood:331 = Rare342 = Unlikely353 = Possible364 = Likely375 = Almost Certain3839Impact:401 = Negligible412 = Minor423 = Moderate434 = Major445 = Catastrophic45```4647### Risk Response Strategies4849| Strategy | Description | When to Use |50|----------|-------------|-------------|51| **Avoid** | Eliminate the risk entirely | High impact, high likelihood |52| **Mitigate** | Reduce likelihood or impact | Medium-high risks |53| **Transfer** | Shift risk to another party | Insurable risks, outsourcing |54| **Accept** | Acknowledge and monitor | Low risks, unavoidable risks |5556### Risk Register Template5758| Risk ID | Description | Likelihood | Impact | Score | Response | Owner | Status |59|---------|-------------|------------|--------|-------|----------|-------|--------|60| R001 | [Description] | 3 | 4 | 12 | Mitigate | [Name] | Open |61| R002 | [Description] | 2 | 5 | 10 | Transfer | [Name] | In Progress |6263### Common Business Risks6465| Category | Example Risks |66|----------|---------------|67| **Strategic** | Market changes, new competitors, technology disruption |68| **Operational** | Process failures, supply chain, system outages |69| **Financial** | Cash flow, credit, currency, interest rates |70| **Compliance** | Regulatory changes, data privacy, labor laws |71| **Reputational** | PR crisis, customer complaints, social media |7273---7475## Power-Interest Grid (Stakeholder Matrix)7677**Use when:** Stakeholder management, project planning, change initiatives7879### The Four Quadrants8081```82High ┌───────────────────┬───────────────────┐83 │ KEEP SATISFIED │ MANAGE CLOSELY │84Power │ │ │85 │ Low Interest │ High Interest │86 │ High Power │ High Power │87 ├───────────────────┼───────────────────┤88 │ MONITOR │ KEEP INFORMED │89 │ │ │90 │ Low Interest │ High Interest │91Low │ Low Power │ Low Power │92 └───────────────────┴───────────────────┘93 Low High94 INTEREST →95```9697### Engagement Strategies9899| Quadrant | Strategy | Actions |100|----------|----------|---------|101| **Manage Closely** (High Power/High Interest) | Active engagement | Regular meetings, involve in decisions, address concerns immediately |102| **Keep Satisfied** (High Power/Low Interest) | Meet their needs | Periodic updates, don't overwhelm with details, engage when needed |103| **Keep Informed** (Low Power/High Interest) | Communication | Regular updates, use as advocates, gather feedback |104| **Monitor** (Low Power/Low Interest) | Minimal effort | General communications, monitor for changes |105106### Stakeholder Analysis Template107108| Stakeholder | Role | Power | Interest | Quadrant | Strategy | Key Concerns |109|-------------|------|-------|----------|----------|----------|--------------|110| [Name] | [Role] | H/M/L | H/M/L | [Quadrant] | [Strategy] | [Concerns] |111112### Stakeholder Mapping Process1131141. **Identify stakeholders** - Who is affected by or can affect the project?1152. **Assess power** - Decision authority, resources, influence1163. **Assess interest** - How much do they care? Positive or negative?1174. **Plot on grid** - Position each stakeholder1185. **Plan engagement** - Tailored approach for each quadrant1196. **Review regularly** - Power and interest can shift120121---122123## Salience Model (Alternative)124125**Use when:** More nuanced stakeholder classification needed126127### Three Dimensions128129| Attribute | Definition |130|-----------|------------|131| **Power** | Ability to impose their will |132| **Legitimacy** | Appropriateness of their involvement |133| **Urgency** | Time-sensitivity of their claims |134135### Seven Stakeholder Types136137```138 Power139 │140 ┌─────────┼─────────┐141 │ Dominant │142 │ (Power+Leg) │143 └─────────┬─────────┘144 │145 Discretionary ────┼──── Dangerous146 (Legitimacy) │ (Power+Urgency)147 │148 ───┼───149 │150 Dependent ────────┼──── Demanding151 (Leg+Urgency) │ (Urgency)152 │153 ┌─────────┴─────────┐154 │ Definitive │155 │ (All three) │156 └───────────────────┘157```158159| Type | Attributes | Response |160|------|------------|----------|161| **Definitive** | Power + Legitimacy + Urgency | Highest priority |162| **Dominant** | Power + Legitimacy | Important, plan for urgency |163| **Dangerous** | Power + Urgency | Handle carefully |164| **Dependent** | Legitimacy + Urgency | May seek alliance with powerful |165| **Dormant** | Power only | Monitor, can become active |166| **Discretionary** | Legitimacy only | Optional engagement |167| **Demanding** | Urgency only | Annoying but not dangerous |168169---170171## Communication Planning172173For each stakeholder group, define:174175| Element | Description |176|---------|-------------|177| **Message** | What do they need to know? |178| **Channel** | How will you reach them? |179| **Frequency** | How often? |180| **Owner** | Who is responsible? |181| **Feedback** | How will you get input? |
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