Unit 12- Risk And Issue Management

Question 1

Risk management process. 1 Initiate

Answer 1

Initiate the risk management process.

What is the priority for the project? For instance if time is a key priority any risks associated with time should be viewed more seriously.

Output- Provide a risk management strategy. Scales for probability and impact and any scoring. By looking at scale you can define what this means for time cost quality and probability.

Also included in the strategy:

Roles and Responsibilities
Format of risk register
Reporting methods

Question 2

Risk management process. 2 Identification

Answer 2

Create a list of risks for later analysis

Clear define in terms cause, uncertainty and effect.

Ensure information and description of risk is accurate.

Consult stakeholders
Get external opinions
Learn from other projects
SWOT

Question 3

Risk Management Process. 3 Analysis

Answer 3

Increases understanding and look at probability and impact of this risk.

Understand Impact
• Time
• Cost
• Quality
• Safety

Consider the impact if we have not taken any action.

Assign an individual to monitor the risk and another person mitigate if necessary (sometimes the same person).

Risk proximity may be used to prioritises risks.

Probability and impact grid usually used to access risk.

Question 4

Risk Management Process. 4 Response

Answer 4

Plan the response and access the effectiveness.

Responses can be
- Avoid
- Reduce
- Transfer
- Accept

Review residual risk

Assign risk and action owner

Understand resource required

Update risk register

Question 5

Risk Management Process. 5 implement response

Answer 5

Ensure effective implementation

Empower the risk and action owner

Monitor and adjust the plans as needed

Review existing and any new risks

Update the risk register

Question 6

Responses to Risk/ Threats

Answer 6

Avoid- Avoid the risk- do something differently

Reduce- reduce the impact of something happening

Transfer- transfer to a contractor

Accept- when the risk falls below the tolerance line

Fallback- having a plan B a fall back

Question 7

Responses to Opportunities

Answer 7

Exploit- change the scope. Opportunity to reduce the time and and cost with affecting quality and safety.

Enhance- take an active response. For instance design in house rather than contract out.

Share- share with a contractor to save time and cost without affecting quality - insensitive would be a share in the savings.

Reject- benefits are too small compared to effort.

Question 8

Risks, concerns, issues

Answer 8

Risk:

Something that has uncertainty
It is not an issue

Concern or problem:

Something that the PM can deal with
It is not and issue

Issue

Issue threatens the tolerance
Must be resolved
Requires escalation

Question 9

Issue management process

Answer 9

All issues should be logged and analysed and raised to the project sponsor governance board.

The issue log should contain the following information

Date raised
Description
Evaluation
Owner
Data
Resolution
Date of resolution
Status
Date of last review
Comments 

Question 10

Benefits of risk management

Answer 10

Distinguishes between good luck management

Develops staff ability to look for risk and opportunities

Facilitate greater risk taking

Clarity responsibility of those involved