uncertain event or condition that has positive or negative effect on the project objectives
risk
it attempts to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented
Risk Management
generating a list of all the possible risks that could affect the project
Risk Identification
a list of questions that address traditional areas of uncertainty on a project
Risk Profile
sifting through the list of risks, eliminating inconsequential or redundant ones and stratifying worthy ones in terms of importance and need for attention.
Risk Assessment
- commonly used technique for analyzing risks
- members assess the significance of each risk event on terms of: Probability of the event and Impact of the event
Scenario Analysis
provides a basis for prioritizing which risks to address.
Risk Severity Matrix
FMEA
Failure Mode and Effects Analysis
FMEA formula
Impact x Probability x Detection
PERT
program evaluation and review tachnique
decision must be made concerning which response is appropriate for the specific event
Risk Response Development
two strategies for mitigating risks:
- reduce the likelihood that the event will occur
2. reduce the impact that the adverse event would have on the project.
is an alternative plan that will be used if a possible foreseen risk event becomes a reality.
Contingency plan
Risk Management benefits
- proactive rather than reactive approach.
- reduces surprises and negative consequences
- prepares the project manager to take advantage of appropriate risks
- Provides better control over the future.
- Improves chances of reaching project performance objectives within budget and on time.
is an event that can have a positive impact on project objective
opportunity
Response to opportunity:
- Exploit
- Share
- Enhance
- Accept
Typically the results of the first three steps of the risk management process are
summarized in a formal document often called the____
Risk Register
Technical Risks
- Backup strategies if technology fails
- Assessing whether technical uncertainties can be resolved
Schedule risks
- Use of slack increases the risk of a late project finish
- imposed duration dates
- Compression of project schedules due to shortened project duration date.
Costs risks
- Time/cost dependency links: costs increase when problems take longer to solve than expected.
- Price protection risks (a rise in input costs) increase if the duration of a project is increased.
Funding risks
Changes in the supply of funds for the project can dramatically affect the likelihood of implementation or successful completion of a project.
size of funds reflects overall risk of a project
Funds to cover project risks
linked to the identified risks of specific work packages
budget reserves
are large funds to be used to cover major unforeseen risks of the total project
management reserves
