L6 - Risk Management Flashcards
Objective of Risk Management
To provide a process for early identification of risks and opportunities in order to properly assess them, track them, and manage them throughout the project.
Risk Management Plan
Describes the process to be used for assessing, mitigating, and managing potential risk:
- Statement of purpose
- Performance objective
- Defines terminology
- Establishes process and procedures
- Identifies risk and mitigation methods
Risk Identification
Include team members with the most project knowledge.
Facilitate open thinking during identification of risks.
Identify potential impacts of risks.
Keep expectations realistic.
Develop a tracking report (Risk Register)
Risk Analysis
Likelihood Severity Categorize risk element Establish accountability Prioritize efforts Incorporate risk into project budget and schedule
Quantitative risk evaluation
Estimate % likelihood of risk occurrence.
Estimate potential cost impact if risk occurs.
Estimate potential schedule impact if risk occurs.
Utilize analysis tools to determine impact of risk on project budget and schedule.
Risk Management
Communication and reporting Tracking (risk register) Mitigation Resolution: -Avoidance -Mitigation -Transfer -Acceptance
Continuous Risk Management
Risk changes as the project progresses
Risk management should be an ongoing integrated process.
The earlier in the project’s lifecycle the greater the level of uncertainty and the greater the risks.
As the project progresses the risk management plan should evolve to meet the needs of each phase.
All project phases should be considered in risk management.
Risk Management Plan benefits
Systematic framework for identifying and managing risk.
Minimize losses; maximize gains.
Enhanced project delivery.
Improved decision making.
Increased confidence in project objectives.
Improved resource allocation.
