Project Risk Management

E2W Training

Risk is a Planned Future Event, Not a Current Issue

Foundation

Risk Management - Process to identify, analyze and respond to project risk


Qualitative Analysis - Prioritize risk combing probability & input (heart/feeling)


Quantitative Analysis - Numerical (brain/logical)


Tolerances - Level or risk you are willing to accept


Trigger - event to cause a risk to materialize or indicates that it will materialize in the future


Risk Mitigation - Process of reducing the probability of risks occurrence or impact


Risk Contingency - Tasks associated with dealing with the risk in the event that they occur

3 Components

Event - "Thing"

Probability - High/Low or %

Impact - Financial or time

Risk vs Issue

Risk is a future event, if it occurs, it will impact the project


Issue is a present event, it is impacting the project

Objective

Minimize Negative Risks and Maximize Positive Risk (Opportunities)

Issues

(Tracked Separately from Risks) - use the cbb.p issue log


1. Management Issues - occur from daily activities

2. Defect Issues - direct result of product defects (technical testing)

3 Enhancement Issues - result from undocumented requirements (user testing)

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Risk Management is All...

...about the money


Any schedule or scope changes will impact money

Risk Identification

1. Identify - identify as many risks as possible

2. Classify - Better understand source, effects and additional risks

Sample Classification

Schedule

Budget

Scope

Technical

Legal

Environmental

Risk Quantification

1. Quantification

2. Prioritization

3. Filter

4. Quantification


Probability - High, Medium, Low

Impact - High, Medium, Low