RISKS Flashcards
Types of risk that could affect a project
- Technical Risk
- Market Risk
- Financial Risk
- Schedule Risk
- Resource Risk
- External Risks
- Quality Risk
- Scope Creep
- Communication Risk
- Security Risk
Risk Management
Identifying risks to reduce uncertainties and lessen impacts of risks.
Methods of managing risk
Risk avoidance - take action to eliminate risk, a more experienced staff is needed to avoid risks.
Risk transfer - shift risk to another party, through contracts or insurance.
Risk mitigation - Invest in training of staffs to mitigate risks.
Risk acceptance - acknowledge risk and choose to to deal with consequences if occurs.
Risk monitoring - continuously assess and manage risk throughout the project. Review progress and adjust strategies to address emerging risks.
Risk Checklist
used in project management to identify potential risks that could affect a project.
can be used as a guide during project planning and ensure comprehensive risk identification and mitigation strategies.
PROJECT RISK
Affect project completion within time, cost, scope, and quality constraints.
Examples: delays, budget overruns, scope changes.
Managed by project managers throughout the project lifecycle.
BUSINESS RISK
Impacts the overall performance and stability of a business.
Arises from internal and external factors.
Examples: market changes, operational issues, financial instability, changes in regulations.
Managed to safeguard long-term sustainability and success of the business.
RISK REGISTER
A document that records information about identified risks, their likelihood, potential impact, planned responses.
PURPOSE: provide a structured way to manage and monitor risks throughout a project.
CONTENT OF A RISK REGISTER
Risk identification: description of risk, sits sources, how it impact project.
Risk assessment: likelihood and impact of risk.
Risk response: planned strategies to address each risk.
Risk owner: individual responsible for managing and monitoring risk.
Status: current status of risk, whether it is being managed, resolved or if there are new risks.
Risk Impact
how much harm or benefit a risk could cause if it occurs.
Big impact means big consequences.
Risk Exposure
Total potential loss an organization faces due to risks.
Higher exposure means more potential for loss.
Risk Proximity
How close a risk is to actually happening or affecting the project.
Closer proximity means it’s more likely to happen soon.
3 methods that can be used to identify risks
BRAINSTORMING
Encourages open discussion, collects knowledge from the team. It foster creativity and helps uncover range of risks.
RISK CHECKLISTS
Acts as a prompt, help identify risks that might be overlooked in absence of structured approach.
SWOT ANALYSIS -
Identify risks, assesses project’s internal capabilities and external environment.
Generic software risk
Common and broad categories of potential issues or challenges associated with software development and implementation.
Are recognized patterns that can arise across various software projects.
Why generic risk are not useful for specific projects
Too broad, lack specificity for a project’s unique context.
Don’t prioritise risk based on project specific characteristics and objectives.
May lead on false sense of covering all risks.
Why is risk management important ?
- Identify risks early, minimize potential challenges.
- Enhance efficiency and avoid disruptions.
- Aiding informed decision-making for successful outcomes.
- Builds trust and manages stakeholder expectations effectively.
- Develop contingency plans ensures project adapt to changes without compromising success.
- Prevent costly delays and budget overruns.
- Contribute to organizational learning and continuous improvement.
