Risk
The 9 topic areas of project management knowledge
Risk is is one of the 9 topic areas of project management knowledge.
A risk is the chance of something happening that will have an impact upon objectives. Risk can have both positive (upside risk) and negative (downside risk) consequences.
Project Risk Management is the process of evaluating alternative responses to project risk and selecting among them.
Risk management in projects/programmes include at least the following processes:
A project risk is a potential source of deviation from the project plan. Project risks can have a negative or positive impact on the project. Project risks that are negative are called threats. Project risks that are positive are called opportunities.
Responses to threat include --
| Process | Project Phase | Key Deliverables |
|---|---|---|
| Project risk management planning | Detailed planning | |
| Risk Monitoring and Control | Execution |
Requested changes: Project Change Request |
A risk is the chance of something happening that will have an impact upon objectives. Risk Management is the process of evaluating alternative responses to risk and selecting among them.
Risk is one is one of the 9 topic areas of project management knowledge.
Risks are potential future events that can adversely affect a project’s Cost, Schedule, Scope or Quality (CSSQ). In prior phases, the Project Manager defined these events as accurately as possible, determined when they would impact the project, and developed a Risk Management Plan.
An easy way to reduce risk is to have less ambitious goals. After evaluating risks, one can choose a path of risk avoidance or risk mitigation and management. If we understand the risks on a project, we can decide which risks are acceptable and take actions to mitigate or forestall those risks. If our project risk assessment determines risks are excessive, we may want to consider restructuring the project to within acceptable levels of risk.
Any area over which the project manager does not have control can be project risks. Anything that is not well understood, anything that is not well documented, and anything that can change, these all create project risks. Things that haven’t been tested are always at risk.
An organizational culture that has previously had problems executing projects will be likely to repeat the same mistakes. These problem areas should be understood and managed as significant project risks. They must be counteracted by mitigating management initiatives or repeated failures are guaranteed
Risk management in projects/programmes include the following processes:
Risk Analysis A systematic use of available information to determine how often specified events may occur and the magnitude of their consequences. it involves listing expected risk areas; compare project objectives to risk items and identify manageable risks.
Risk Avoidance and Mitigation Designing activities in such a way as to minimize risk exposure.
Risk Management Plan Identify specific work processes to respond to the eventuality that risk occur.
During Project Initiation and Planning, risks were remote events with uncertain probabilities of coming true.