Managing Risks
In managing risks are comprised into four:
Identify Risks:
A risk is an uncertain event that, if it occurs, can jeopardize accomplishing the project
objective;
Risk identification includes determining which risks may adversely affect the project objective
and what the impact of each risk might be if it occurs;
Sometimes a sponsor identifies major risks in the project charter when the project is
authorized;
A common approach to identifying the sources of risks is brainstorming;
The risks should be those that are somewhat likely to occur and/or can have a significant
negative impact on accomplishing the project objective;
Establishing risk categories may help to identify and evaluate risks. Some categories are
technical, schedule, cost, human resources, external, or sponsor/customer;
Historical information from past projects is another source that can be helpful in identifying
possible risks;
The project team can progressively elaborate on and identify new risks, as well as the
estimated impacts of previously identified risks, as more information is known or becomes
clear.
Assess Risks:
Assessing each risk includes determining the likelihood that the risk event will occur and the
degree of impact the event will have on the project objective;
Risks can then be prioritized based on their likelihood of occurrence and degree of impact;
Risks on the critical path should be given higher priority, because if they occur, they will have
a greater impact on the schedule than will activities on a path that has a large positive value
of total slack.
Plan Risk Responses:
A risk response plan is a defined set of actions to prevent or reduce the likelihood of
occurrence or the impact of a risk, or to implement if the risk event occurs;
Risk response planning means developing an action plan to reduce the likelihood of
occurrence or potential impact of each risk, establishing a trigger point for when to implement
the actions to address each risk, and assigning responsibility to specific individuals for
implementing each response plan;
A risk response plan can be to avoid the risk, to mitigate the risk, or to accept the risk;
Managing RisksIn managing risks are comprised into four:Identify Risks: A risk is an uncertain event that, if it occurs, can jeopardize accomplishing the projectobjective; Risk identification includes determining which risks may adversely affect the project objectiveand what the impact of each risk might be if it occurs; Sometimes a sponsor identifies major risks in the project charter when the project isauthorized; A common approach to identifying the sources of risks is brainstorming; The risks should be those that are somewhat likely to occur and/or can have a significantnegative impact on accomplishing the project objective; Establishing risk categories may help to identify and evaluate risks. Some categories aretechnical, schedule, cost, human resources, external, or sponsor/customer; Historical information from past projects is another source that can be helpful in identifyingpossible risks; The project team can progressively elaborate on and identify new risks, as well as theestimated impacts of previously identified risks, as more information is known or becomesclear.Assess Risks: Assessing each risk includes determining the likelihood that the risk event will occur and thedegree of impact the event will have on the project objective; Risks can then be prioritized based on their likelihood of occurrence and degree of impact; Risks on the critical path should be given higher priority, because if they occur, they will havea greater impact on the schedule than will activities on a path that has a large positive valueof total slack.Plan Risk Responses: A risk response plan is a defined set of actions to prevent or reduce the likelihood ofoccurrence or the impact of a risk, or to implement if the risk event occurs; Risk response planning means developing an action plan to reduce the likelihood ofoccurrence or potential impact of each risk, establishing a trigger point for when to implementthe actions to address each risk, and assigning responsibility to specific individuals forimplementing each response plan; A risk response plan can be to avoid the risk, to mitigate the risk, or to accept the risk;
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