Risk management

What are Risks?

Uncertain Events or conditions

Components of your project involve uncertainty.

The degree of uncertainty, that a project task could not be completed within the planned time or planned budget.

Involve the unplanned component

Dealing with the unknown

 
 

Risks might have one or more causes

Risk causes or conditions

Requirement,

Assumption,

Condition and

Constraint that may create possibility of negative or positive outcomes

 
 

Risk conditions could include aspects of project's or organization's environment that may contribute to project risk like

Immature project management practices

Lack of integrated management system

Concurrent multiple projects

Dependency on external participants who cannot be controlled

 
 

If it occurs has an effect on at least one project objective.

Project objectives are

Scope

Schedule

Cost

Quality

 
 

Organizations perceive risk as the effect of uncertainty on their project or organizational objectives.

 
 

What is -/+ Risks?

Negative risk has a negative impact on the project aspects as to not get it completed within planned time or budget.

 
 

Positive risk (opportunity) has positive impact on the project aspects as reducing time and/or amount of money needed to get your project completed

 
 

Known versus Unknown risks

Known risks; are those that have been identified and analyzed, making it possible to plan responses for those risks

Unknown risks; those that cannot be managed proactively, which suggests that the project team should create contingency plan

 
 

Risk management objectives; is to make change to increase the probability and impact of positive events, and decrease the probability and impact of negative events

 
 

Risk tolerance; organizations and stakeholders are willing to accept varying degrees of risk. Risks that are threats to a project may be accepted if the risks are within tolerance and are in balance with the rewards that may be gained by taking the risks, for example that adopting fast tracking the schedule technique is a risk taken to achieve the reward created by an earlier completion date.

 
 

Risk attitudes;

Individual and groups adopt attitudes toward risk that influence the way they respond.

Risk attitudes are driven by the perception and tolerance of the people which should be made explicit wherever possible.

 
 

 
 

Risk management includes the processes of conducting risk

Management planning,

Identification,

Analysis,

Response planning and

Monitoring and control on a project

 
 

A consistent approach to risk should be developed for each project, and communications about risk and its handling should be open and honest.

 
 

Risk responses reflect an organization perceived balance between risk taking and risk avoidance.

 
 

To be successful the organization should be committed to address the risk management proactively and consistently throughout the project

 
 

A conscious decision must be made at all levels of the organization to actively identify and pursue effective risk management during the life of the project

 
 

Risk exists the moment a project conceived