How can you prioritize business risks using CPS?

1 What is CPS?

CPS is a systematic approach to finding innovative and effective solutions to complex or ambiguous problems. It involves four main stages: clarifying the problem, generating ideas, developing solutions, and implementing actions. CPS can help you prioritize business risks by applying different tools and techniques at each stage to analyze, evaluate, and prioritize the most critical and urgent risks.

2 Clarify the problem

The first stage of CPS is to define and understand the problem you are trying to solve. This involves gathering relevant information, identifying the root causes, and framing the problem statement. To prioritize business risks, you can use tools such as SWOT analysis, PESTLE analysis, or risk matrix to identify the strengths, weaknesses, opportunities, and threats of your business, as well as the political, economic, social, technological, legal, and environmental factors that can affect it. You can also use tools such as fishbone diagram, 5 whys, or cause and effect analysis to find the underlying causes of the risks. Then, you can write a clear and concise problem statement that summarizes the main challenge or opportunity you are facing.

3 Generate ideas

The second stage of CPS is to brainstorm and generate as many ideas as possible to address the problem. This involves using divergent thinking, which is the ability to explore different perspectives, possibilities, and alternatives. To prioritize business risks, you can use tools such as mind mapping, brainstorming, or SCAMPER to generate ideas for reducing, avoiding, transferring, or accepting the risks. You can also use tools such as reverse brainstorming, negative brainstorming, or worst-case scenario to generate ideas for coping with the worst outcomes of the risks.

4 Develop solutions

The third stage of CPS is to select and refine the best ideas into feasible and effective solutions. This involves using convergent thinking, which is the ability to evaluate, compare, and choose the most suitable options. To prioritize business risks, you can use tools such as decision matrix, cost-benefit analysis, or pros and cons list to rank and compare the ideas based on their impact, likelihood, cost, and benefit. You can also use tools such as criteria matrix, force field analysis, or SWOT analysis to assess the strengths, weaknesses, opportunities, and threats of each solution.

5 Implement actions

The final stage of CPS is to plan and execute the actions that will implement the chosen solution. This involves setting goals, assigning tasks, allocating resources, and monitoring progress. To prioritize business risks, you can use tools such as action plan, Gantt chart, or SMART goals to outline the steps, timelines, and responsibilities for implementing the risk management solution. You can also use tools such as feedback loop, PDCA cycle, or risk register to track, review, and update the solution as needed.