Risk Management is one of the most important aspects of Project Management. Project Managers spend significant amount of project time and resources on risk management. In this article, lets go through the basics.
Risk
A future event that may have an impact on the project
- If impact is negative, it is a negative risk or simply a “risk”
- However, impact could be positive as well and thus some refer to it as positive risk or “opportunity”
Risk Value = Probability of occurrence of the event x Impact of the event
Common Risks
Staff turnover
Experienced staff will leave the project before it is finished
Management change
There will be a change of organisational management with different priorities
Hardware unavailability
Hardware that is essential for the project will not be delivered on schedule
Requirements change
There will be a larger number of changes to the requirements than anticipated
Specification delays
Specifications of essential interfaces are not available on schedule
Size underestimate
The size of the system has been underestimated
Technology change
The underlying technology on which the system is built is superseded by new technology
Product competition
A competitive product is marketed before the system is completed.
Risk Management
Risk management is the act or practice of dealing with risk. It is proactive rather than reactive. Risks change through out the life of a project and thus need constant monitoring and mitigation
Risk identification
By brainstorming, experience, past projects, expert judgment
Risk assessment
Assess the probability and impact of these risks
Risk treatment
Draw up plans to mitigate the effects of the risk
Risk monitoring
Monitor the risks till closure
Thank you for the reply. PMBOK 6 page 413 – In the Identify Risk process, Stakeholder Register as an output mentions about risk owners as well. can you please elaborate a bit about it or a slide or two about Stakeholder Register and Risk register would be really helpfull
Could you please clarify about Risk owners , and where can we find the details about these Risk owners-In the Risk Register or The Stakeholder Register?
Typically, in the Risk Register because all information pertaining to risks should go in the risk register.