10. Risk and issue management Flashcards
What is the risk management process
initiate
Identify
Analysis
Respond
Close
explain identify in risk management process
This involves systematically identifying potential risks that could impact the project. This includes internal and external factors that may pose threats or opportunities. Early identification allows the project team to address issues before they escalate, contributing to smoother project execution. Knowing potential risks enables informed decision-making, helping the team navigate challenges effectively. Project team members, stakeholders, and subject matter experts typically contribute to the identification process. This occurs during the concept phase of the project life cycle
explain analysis in risk management process
This step involves assessing the identified risks in terms of their probability, impact, and prioritization. It helps in understanding the severity of each risk. Allows for the allocation of resources to high-priority risks, optimizing the project team’s efforts. Analysis aids in developing effective contingency plans, mitigating the potential negative impacts of identified risks. Project managers, risk analysts, and relevant experts are typically involved in the risk analysis process. Analysis is an ongoing process throughout the project life cycle, with periodic reviews to accommodate changes.
Explain proactive response to risk
A proactive response involves anticipating and addressing potential issues before they arise in a project. This approach focuses on preventive actions, such as risk management, to mitigate challenges. Two benefits include enhanced risk mitigation, reducing the likelihood of disruptions, and improved project resilience. Key players in proactive responses include project managers, risk analysts, and the project team. Proactive measures are typically implemented during the early stages of the project life cycle to establish a solid foundation.
explain reactive response to risk
On the other hand, a reactive response deals with addressing issues after they have occurred. It involves managing unexpected events, minimizing their impact, and restoring the project to its intended course. Benefits include quick problem resolution and the ability to adapt to unforeseen circumstances. Stakeholders, project managers, and support teams are typically involved in reactive responses. These responses are more prevalent during the execution and monitoring phases of the project life cycle, addressing issues as they arise.
3 benefits of risk management procedure
Stakeholder satisfaction
Budget
Schedule
explain stakeholder in benefits of risk management procedure
Stakeholder Satisfaction - Stakeholder satisfaction involves addressing and managing the expectations, concerns, and interests of project stakeholders. A robust risk management procedure facilitates effective communication with stakeholders, ensuring their needs are understood and incorporated into project planning. Identifying and mitigating risks early enhances stakeholder confidence, as potential disruptions are addressed before they impact project outcomes. Project managers are responsible for upholding stakeholder satisfaction throughout the project life cycle, especially during concept, development, and deployment phases.
explain Budget in benefits of risk management procedure
Budget - Budget risk management involves identifying and managing potential cost overruns or unexpected expenditures. Implementing a risk management procedure helps control and minimize financial uncertainties, ensuring the project stays within budget constraints. Efficient risk management allows for the allocation of resources based on potential risks, preventing unnecessary financial setbacks. It is the responsibility of the Project managers to maintain and monitor the allocated budget through the definition and deployment phase of the project
explain schedule in benefits of risk management procedure
Schedule - Schedule risk management addresses potential disruptions to project timelines and deadlines. Identifying and mitigating schedule risks ensures that the project adheres to its timeline, meeting stakeholder expectations. A well-structured risk management procedure allows for effective resource planning, preventing bottlenecks and delays. Project managers are responsible for ensuring the project maintains the schedule set out in the PEP throughout the entire project lifecycle
3 steps in an issue process
identification
assessment
action
explain identification in of issue procedure
Identification - Identification involves recognizing and clearly defining any deviation, problem, or obstacle during the project. Identifying issues early allows for prompt intervention by the PM, preventing them from escalating and impacting the project negatively. Being transparent in identification fosters open communication among team members, enabling a shared understanding of challenges. Project team members, project managers, and relevant stakeholders can contribute to identifying issues through regular communication, status reports, and project meetings throughout the lifecycle of a project.
explain assessment in of issue procedure
Assessment - Assessment entails evaluating the impact and severity of the identified issue on the project’s objectives, timeline, budget, and overall success criteria. Assessing issues helps in prioritizing them based on their impact, allowing the team to focus on critical aspects first. A thorough assessment provides the necessary information for informed decision-making on how to address the issue effectively. Project managers, subject matter experts, and relevant team members can collaborate to assess the issue’s implications and determine its priority level.
explain action in of issue procedure
Actions - The actions step involves developing and implementing a corrective action plan to address the identified issue and bring the project back on track. Taking targeted actions ensures the project stays aligned with its objectives, maintaining overall project integrity. Implementing corrective actions contributes to a culture of continuous improvement, enhancing the project team’s ability to adapt and excel. Project managers, team leads, and individuals with relevant expertise actively participate in implementing the corrective action plan. Effective communication and collaboration are essential during this phase to ensure successful resolution.
