Lesson 49: Risk practice 6 – Planning, analysis, and control Flashcards
Guidance for risk management has three parts: risk planning, risk analysis, and risk control.
What happens in risk planning?
The manual is very vague (see 9.2.1), and here are some things to do:
Understand when techniques you will use to identify risks (eg: PESTLE).
Create the risk management approach.
Agree on how risks can be described (cause, event, effect).
Remind the project board to set the risk tolerance.
Techniques include PESTLE analysis.
What happens under risk analysis?
The first thing to do is to identify risks and get these on paper in some form. Then, it is time to analyze these risks by assessing them and understanding their impact. PRINCE2 says that you can use qualitative & quantitative approaches in analyzing risks (see next question :-) )
Qualitative is quick assessment; Quantitative is detailed assessment.
What is meant by Qualitative and Quantitative?
Qualitative is a quick risk assessment (e.g., rate the risk as low, moderate, or high). Quantitative is much more detailed (e.g., chance if the risk is 15% and Impact is €80,000).
Example of Quantitative: chance of risk is 15% and impact is €80,000.
What is risk control?
Risk control is about deciding how to respond and control the risks, and how best to respond to risks will depend on the situation and type of risk.
Response strategies depend on the specific context of the risks.
What is residual risk?
In project management, residual risk refers to the amount of risk remaining after implementing various risk mitigation strategies. It’s essentially the unavoidable or accepted level of uncertainty after taking action to reduce, avoid, or transfer known risks.
It represents the unavoidable or accepted level of uncertainty.
What is a secondary risk?
A secondary risk is a new risk that arises specifically as a direct result of implementing a response to a previously identified risk. It’s essentially a ripple effect, where your risk mitigation strategy for one issue unintentionally creates another potential problem.
It is a ripple effect from risk mitigation strategies.
Who is responsible for the management and monitoring of the risk?
The risk owner is responsible for the management, monitoring, and control of all aspects of a particular risk assigned to them.
The risk owner controls all aspects of a particular risk assigned to them.
What is PESTLE?
A techniquetoidentify and prioritize risk using categories:
- political
- economical
- social
- technological
- legal
- environmental
