Risk Identification
Risk Identification
Identify project, product and business risks;
Risk analysis
Assess the likelihood and consequences of these risks;
Risk planning
Draw up plans to avoid or minimise the effects of the risk;
Risk monitoring
Monitor the risks throughout the project;
Risk identification
Technology risks.
People risks.
Organisational risks.
Requirements risks.
Estimation risks.
Risk analysis
Assess probability and seriousness of each risk.
Probability may be very low, low, moderate, high or very high.
Risk effects might be catastrophic, serious, tolerable or insignificant.
Risk planning
Consider each risk and develop a strategy to manage that risk.
Avoidance strategies
The probability that the risk will arise is reduced;
Minimisation strategies
The impact of the risk on the project or product will be reduced;
Contingency plans
If the risk arises, contingency plans are plans to deal with that risk;
Risk monitoring
Assess each identified risks regularly to decide whether or not it is becoming less or more probable.
Also assess whether the effects of the risk have changed.
Each key risk should be discussed at management progress meetings.
Why manage risks?
It is a fact of life that chance events will occur and affect the outcome of your project
Murphys Laws codify this “knowledge”
-If anything can go wrong, it will!
-Of things that could go wrong, the one that causes the most damage will occur!
Project risks are defined as the undesirable event, the chance this event might occur and the consequences of all possible outcomes
Risk management attempts to identify such events, minimize their impact & provide a response if the event is detected
Risk Management Steps
There are four major steps to developing a risk management plan
Identify all the possible risk events that could affect the project
Assess each risk in terms of probability, impact severity and controllability
Develop a strategy and/or contingency for responding to each risk
Monitor and control risks dynamically
Identify the project risks
Generate list of all possible risks by “brainstorming” among team members
Do not attempt to assess risk probability; that is for a later step
Focus on risk events, rather than risk consequences
—For example, “instrument does not return correct data” is a consequence of events like poor circuit design, incorrect or failed components, poor software implementation
First focus on overall project risks, then identify specific risks
Use your WBS to help organize your risk identification process
Seek input from sources from outside your group
Emphasize critical thinking and remember Murphys Laws