Question

Supposed your organization used a qualitative risk assessment matrix with three levels each of probability and consequences (high, medium and low). In evaluating a project's risks, you determine that commercial risks pose a low probability of occurrence but high consequences. On the other hand, legal risks are evaluated as having a high probability of occurrence and medium consequence. If you are interested in prioritizing your risks, What should be considered first?

Answer 1

I consider that commercial or legal risks should be prioritized as they have a high probability of occurrence and medium consequence is not low, so it affects a project or company in a medium degree.

Step-by-step explanation:

Commercial and legal risks: the more you know about a company, the safer the commercial exchanges with it will be. Knowing all the official information published in public records, in the media and that relating to their management teams, shareholders or administrators will complete that previous image of who we are relating to and will prevent us from taking surprises in the future.

Furthermore, it is important to bear in mind that initially, if the project or the company does not have all its clearly established legal norms, it may incur a sanction and be forced to compensate damages due to its breach of norms or regulations and contractual obligations.

This type of risk also arises as a consequence of failures in contracts and transactions, which derive from malicious acts, negligence or involuntary acts that do not make it possible to formalize or execute contracts or transactions.