Every human activity contains risk factors. And only solution to avert the risk factor is how carefully we monitor and anticipate the risk factor before it occurs. Different concepts come on help in monitoring and anticipating the risk factors involved in an activity. A waterfall chart is a special type of floating-column chart that is most suitable to monitor the risks in a human activity.

The waterfall chart contains floating columns through which the initial value moves. The initial value may be the activity itself and moving though the floating columns to gain the final value. Through the movement, it increases and decreases by some intermediate values. An invisible column parameterizes the increase and decrease of the initial value. This parameter, in the invisible column, indicates the risks involved in that activity. We can take risk and time as two dimensions of the chart.

Fallback Plan

Once we trace out the risks in the activity, then the next question arises “how to handle the risk.” In normal condition, the mitigation plan solves the risk. If the mitigation plan fails to solve the risk then the concept “Risk Handling Option” arises. A risk handling option defines the possible action to reduce the probability of risk before its occurrence. In other words, a risk handling option goes for an alternative to act on if the mitigation plan fails and risk decision point reaches.