Risk and Issue Management Flashcards
What is a Risk
An uncertain event or set of circumstances what, should it occur, will have an effect on the achievement of one or more of the project objectives
Benefits of risk management
Defines process for managing risk, including roles
Mechanism for continual improvement for project - feedback loop
Ensures proper contingency is in place
Consistency
Reference point for audit and assurance
Provides clarity to org from outset.
Risk Management Process
Initiate - - risk management plan
Identify - - risk log
Assess - - Probability Impact Grid
Plan responses - - decisions
Implement Responses - - update the plan
Risk Management Plan
Scope Objectives Roles Process Tools
Risk Identification tools
Brainstorming - with stakeholders
Interviewing - subject matter experts
Delphi - panel of experts
Prompt Lists - general risk types
Checklists - more specific
Assumptions Analysis - what it says on the tin
Risk Probability/Impact Analysis
May probability vs impact.
Assign numerical values. Prob x Impact = risk rating.
Risk Responses
Risk:
Avoid - change scope or approach
Accept - take no action, allocate contingency
Reduce - take steps to reduce impact or probability
Transfer - insurance or contract
Opportunity Reject Enhance- improve probability Exploit - change scope of project Share
Issues
A formal issue occurs when the tolerances of delegated work are predicted to be exceeded, or have been exceeded. This triggers the escalation of the issue from one level of management to the next in order to seek a solution.
Includes risks which have occurred
Recorded on Issue register
Benefits of issue management
\+ prevents uncontrolled issues from worsening \+ Stakeholder information \+ Triggers deployment of contingencies \+ Clear hierarchy of responsibility \+ Open reporting, active resolution
