Risk Identification
By: xiaoyu • Essay • 668 Words • August 15, 2010 • 2,040 Views
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
- Murphy's 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
1. Identify all the possible risk events that could affect the project
2. Assess each risk in terms of probability, impact severity and controllability
3. Develop a strategy and/or contingency for responding to each risk
4. 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 Murphy's Laws