This document provides an overview of project risk management. It discusses what project risk is, the risk management process, and tools for risk identification, analysis, response planning, monitoring and control. The risk management process involves planning risk management, identifying risks, analyzing their probability and impact, developing response plans, monitoring risks throughout the project, and using tools like risk logs and templates. Managing risks proactively helps improve project success rates.
This document provides an overview of project risk management. It defines project risk as an event that could have a positive or negative impact on a project. Risk management involves identifying risks and developing plans to minimize their effects. The key steps in risk management are risk identification, analysis, response planning, monitoring and control. Managing risks helps improve project success rates, schedule and cost performance by moving from reactive to proactive decision making.
The document discusses project risk management. It defines risk as uncertainty that could negatively or positively impact a project's objectives. There are various types of risks like schedule, budget, operational, technical, and programmatic risks. Risk management involves identifying, analyzing, and responding to risks throughout the project life cycle to help meet objectives. The key aspects of risk management are planning risk management, identifying risks, performing qualitative and quantitative risk analysis, planning risk responses, and monitoring and controlling risks. The overall goal is to minimize threats and maximize opportunities related to project risks.
Webinar - Building Team Efficiency and EffectivenessInvensis Learning
Wouldn’t it be great if you could get to better ideas faster? If you learn to master just two thinking skills, you can! Many of the PMI supported tools have origins in creativity. As such, these tools are best leveraged when you apply divergent thinking (to generate) or convergent thinking (to narrow). This session will explore the principles of divergent and convergent thinking and provide examples of techniques to maximize their power in decision making, problem solving and performance feedback.
Risk management involves identifying potential risks, assessing their probability and impact, prioritizing risks, developing strategies to mitigate high-priority risks, and continuously monitoring risks throughout the project. There are different categories of risk including project risks, technical risks, business risks, known risks, and unpredictable risks. Effective risk management requires proactively identifying risks, tracking them over time, taking steps to reduce impact or likelihood, and open communication across teams.
Risk management is important for software projects to identify risks that could impact cost, schedule or quality and put mitigation plans in place. The key steps in risk management are risk identification, analysis, planning, monitoring. Risks can be project risks, product risks, technical risks or business risks. It's important to identify both known/predictable risks as well as unpredictable risks. The goal of risk management is to anticipate issues and have contingency plans to minimize negative impacts.
This document discusses risk management for engineering projects. It defines risk as potential problems that could impact a project's budget, timeline or deliverables. The risk management process involves identifying risks, analyzing their likelihood and impact, planning strategies to avoid or minimize risks, and monitoring risks throughout the project. Common risk types are technology, people, organizational, tools and requirements risks. Risk analysis assesses the probability and consequences of each risk. Risk planning develops avoidance, minimization and contingency strategies. Risk monitoring tracks risks and determines if their likelihood or impact changes over time.
Episode 25 : Project Risk Management
Understand what risk is and the importance of good project risk management.
Discuss the elements involved in risk management planning and the contents of a risk management plan.
List common sources of risks in engineering and information technology projects.
Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register.
SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
Risk management involves identifying potential problems, assessing their likelihood and impacts, and developing strategies to address them. There are two main risk strategies - reactive, which addresses risks after issues arise, and proactive, which plans ahead. Key steps in proactive risk management include identifying risks through checklists, estimating their probability and impacts, developing mitigation plans, monitoring risks and mitigation effectiveness, and adjusting plans as needed. Common risk categories include project risks, technical risks, and business risks.
This document provides an overview of project risk management. It defines project risk as an event that could have a positive or negative impact on a project. Risk management involves identifying risks and developing plans to minimize their effects. The key steps in risk management are risk identification, analysis, response planning, monitoring and control. Managing risks helps improve project success rates, schedule and cost performance by moving from reactive to proactive decision making.
The document discusses project risk management. It defines risk as uncertainty that could negatively or positively impact a project's objectives. There are various types of risks like schedule, budget, operational, technical, and programmatic risks. Risk management involves identifying, analyzing, and responding to risks throughout the project life cycle to help meet objectives. The key aspects of risk management are planning risk management, identifying risks, performing qualitative and quantitative risk analysis, planning risk responses, and monitoring and controlling risks. The overall goal is to minimize threats and maximize opportunities related to project risks.
Webinar - Building Team Efficiency and EffectivenessInvensis Learning
Wouldn’t it be great if you could get to better ideas faster? If you learn to master just two thinking skills, you can! Many of the PMI supported tools have origins in creativity. As such, these tools are best leveraged when you apply divergent thinking (to generate) or convergent thinking (to narrow). This session will explore the principles of divergent and convergent thinking and provide examples of techniques to maximize their power in decision making, problem solving and performance feedback.
Risk management involves identifying potential risks, assessing their probability and impact, prioritizing risks, developing strategies to mitigate high-priority risks, and continuously monitoring risks throughout the project. There are different categories of risk including project risks, technical risks, business risks, known risks, and unpredictable risks. Effective risk management requires proactively identifying risks, tracking them over time, taking steps to reduce impact or likelihood, and open communication across teams.
Risk management is important for software projects to identify risks that could impact cost, schedule or quality and put mitigation plans in place. The key steps in risk management are risk identification, analysis, planning, monitoring. Risks can be project risks, product risks, technical risks or business risks. It's important to identify both known/predictable risks as well as unpredictable risks. The goal of risk management is to anticipate issues and have contingency plans to minimize negative impacts.
This document discusses risk management for engineering projects. It defines risk as potential problems that could impact a project's budget, timeline or deliverables. The risk management process involves identifying risks, analyzing their likelihood and impact, planning strategies to avoid or minimize risks, and monitoring risks throughout the project. Common risk types are technology, people, organizational, tools and requirements risks. Risk analysis assesses the probability and consequences of each risk. Risk planning develops avoidance, minimization and contingency strategies. Risk monitoring tracks risks and determines if their likelihood or impact changes over time.
Episode 25 : Project Risk Management
Understand what risk is and the importance of good project risk management.
Discuss the elements involved in risk management planning and the contents of a risk management plan.
List common sources of risks in engineering and information technology projects.
Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register.
SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
Risk management involves identifying potential problems, assessing their likelihood and impacts, and developing strategies to address them. There are two main risk strategies - reactive, which addresses risks after issues arise, and proactive, which plans ahead. Key steps in proactive risk management include identifying risks through checklists, estimating their probability and impacts, developing mitigation plans, monitoring risks and mitigation effectiveness, and adjusting plans as needed. Common risk categories include project risks, technical risks, and business risks.
Risk management involves identifying potential risks to a project, analyzing their likelihood and impact, and developing plans to mitigate negative risks. Some key risks include staff turnover, requirements changes, and underestimating the time or resources needed. It is important to identify risks early, communicate about them, assign ownership, prioritize risks, and regularly monitor risks and mitigation strategies. Effective risk management can help promote the success of software projects by focusing resources and preventing potential problems.
The document discusses risk planning and management for projects. It defines key risk management terms and outlines various types of risks that may be encountered on projects, such as computer-related risks, human-related risks, and risks specific to software projects. The document also discusses risk identification techniques, qualitative and quantitative risk analysis, developing risk responses, and creating a risk register to document identified risks and related information.
As per PMBOK - "The whole point of undertaking a project is to achieve or establish something new, to venture, to take chances, to risk. Risk may have positive effects or negative effects on the project “Schedule” and/or “Cost”. Positive risks are Opportunities and negative risks are losses or threats; remember both risks are uncertain “percentage of occurrence less than 80%”. Risk Management purpose is to manage (Plan and implement) these uncertainties.
This document provides an overview of project risk management. It defines risk management as identifying, evaluating, and preventing or mitigating risks that have the potential to impact project outcomes. It also discusses the benefits of risk management, which include helping achieve project success with fewer obstacles by saving resources, money, and time. Additionally, the document outlines the main categories of project risk as technical, external, organizational, and project management risks. It explains the difference between risks, which can be predicted and managed, and uncertainties, which cannot be predicted or quantified.
This document provides an overview of project risk management. It defines risk as the possibility of suffering loss and discusses how risk changes throughout a project's life. Key aspects of risk management are identified, including risk identification, assessment, response planning, monitoring and control. Various risk management techniques are described, such as risk maps, hazard control matrices, and defining risk ownership. The document emphasizes that effective risk management can help improve project success.
The document discusses risk management strategies for projects. It identifies four types of risks: schedule, budget, operational, and technical. Schedule risks can occur due to wrong time estimation or resource issues. Budget risks include wrong cost estimation and overruns. Operational risks stem from priority conflicts and process impacts. Technical risks involve changing requirements, unavailable technology, complexity, and integration difficulties. External risks outside a project's control include funding issues, market changes, and shifting strategies or government rules. The key is to identify risks early to minimize costs and impacts through avoidance, transfer, acceptance, or mitigation approaches.
Paper on risk management by Samuel Obino MokayaDiscover JKUAT
The document discusses project risk management. It defines risk and explains that identifying and addressing risks is important for project success. The risk management process involves identifying, analyzing, planning for, and monitoring risks. Key risks should be prioritized and contingency plans developed. Potential project risks include those related to technology, people, organizations, and estimations. Thorough risk assessment during project planning and regular risk monitoring are emphasized.
This document discusses various types of risks in project management. It identifies different categories of risk like stakeholder risk, regulatory risk, external risk, execution risk, scope risk, scheduling risk, resource risk, and technology risk. It also describes risk management and techniques to incorporate risk factors in projects, including using a risk adjusted discount rate, certainty equivalent coefficient, sensitivity analysis, probability assignment, standard deviation, coefficient of variation, and decision tree analysis.
This document discusses risk management in project management. It explains that risk identification, probability assessment, and impact estimation are important activities for risk analysis. Risks can be proactively or reactively managed. Proactive management involves formal risk analysis and addressing root causes, while reactive management involves responding to risks as they occur. Key aspects of risk management include identifying risks, analyzing their probability and impact, developing a risk table to plan mitigation strategies, and continuously monitoring and managing risks throughout the project lifecycle.
This document discusses risk management in project management. It defines project risk as an uncertain event that can positively or negatively impact project objectives. It identifies different types of risks and explains the risk continuum from unknown unknowns to known knowns. The document also outlines the five main components of risk management according to PMBOK: 1) define objectives, 2) identify risks, 3) qualify and quantify risks, 4) develop responses, and 5) control risks. It provides examples of identifying, analyzing, and responding to different types of risks in projects.
This Presentation will describe you,
01. What is software project management
02. The Role of Software Project Manager
03. Risk Management
04. People Management
not only these point you will have with example.
Risk management involves identifying potential problems before they damage a project. There are three main types of risks: project risks relating to budget, schedule, or personnel; technical risks regarding specifications or implementation; and business risks like building an unnecessary product. To manage risks, the probability and impact of each potential risk must be analyzed. Contingency plans are then developed to minimize disruption if risks occur. Finally, risks are controlled through avoiding, transferring, or reducing their impact on the project.
This document discusses risk management in software projects. It covers identifying risks through checklists and questionnaires, estimating the probability and impact of risks, and developing contingency plans. Key aspects include identifying risks proactively, analyzing each risk's likelihood and consequences, prioritizing high probability/high impact risks, and monitoring risks and triggers to mitigate potential issues. The overall goal is to anticipate problems before they occur and control risks in order to reduce disruption and keep projects on track.
This document discusses risk analysis and management for projects. It defines risk as a potential problem that may or may not occur, and outlines why identifying and planning for risks is important for project success. The document then covers various aspects of risk analysis and management, including risk strategies, categories, identification, assessment, refinement, and developing plans to mitigate, monitor, and manage risks. The overall aim is to help project teams understand risks and put processes in place to avoid or minimize risks that could negatively impact a project.
The document discusses project risk management from the perspective of a development institution. It provides definitions of risk, project, and project management. Project risk management involves planning, organizing, securing, and managing resources to control the effects of uncertainties on a project's objectives. The document outlines the roots of uncertainty in a project, types of risks, and the risk management process. It emphasizes that risk management should be integrated into an organization's culture and involve identifying, assessing, and prioritizing risks.
Understanding the risks in enterprise project managementOrangescrum
This document discusses risks in enterprise project management. It notes that risks come in many forms, from regulatory to technological, and can seriously impact projects like they did for Nokia and RIM. Effective risk management requires experience, business knowledge, and foresight. Identifying and planning for risks is crucial for success. Common risks include unclear requirements or scope, budget issues, and lack of proper processes. The document provides strategies for setting up risk management, including building a risk register and response plans to mitigate threats and exploit opportunities. It emphasizes implementing project management best practices and tools to track tasks and reduce failures.
This lecture provides short and comprehensive view of software project and risk management. It has basic examples and calculations which is main concern of software project manager. This lecture helps to understand basics of risk management.
Mastering Information Technology Risk ManagementGoutama Bachtiar
This is the presentation slide as part of the courseware utilized when delivering Information Technology Risk Management training - workshop on May 2013.
Risk management involves identifying potential risks to a project, analyzing their likelihood and impact, and developing plans to mitigate negative risks. Some key risks include staff turnover, requirements changes, and underestimating the time or resources needed. It is important to identify risks early, communicate about them, assign ownership, prioritize risks, and regularly monitor risks and mitigation strategies. Effective risk management can help promote the success of software projects by focusing resources and preventing potential problems.
The document discusses risk planning and management for projects. It defines key risk management terms and outlines various types of risks that may be encountered on projects, such as computer-related risks, human-related risks, and risks specific to software projects. The document also discusses risk identification techniques, qualitative and quantitative risk analysis, developing risk responses, and creating a risk register to document identified risks and related information.
As per PMBOK - "The whole point of undertaking a project is to achieve or establish something new, to venture, to take chances, to risk. Risk may have positive effects or negative effects on the project “Schedule” and/or “Cost”. Positive risks are Opportunities and negative risks are losses or threats; remember both risks are uncertain “percentage of occurrence less than 80%”. Risk Management purpose is to manage (Plan and implement) these uncertainties.
This document provides an overview of project risk management. It defines risk management as identifying, evaluating, and preventing or mitigating risks that have the potential to impact project outcomes. It also discusses the benefits of risk management, which include helping achieve project success with fewer obstacles by saving resources, money, and time. Additionally, the document outlines the main categories of project risk as technical, external, organizational, and project management risks. It explains the difference between risks, which can be predicted and managed, and uncertainties, which cannot be predicted or quantified.
This document provides an overview of project risk management. It defines risk as the possibility of suffering loss and discusses how risk changes throughout a project's life. Key aspects of risk management are identified, including risk identification, assessment, response planning, monitoring and control. Various risk management techniques are described, such as risk maps, hazard control matrices, and defining risk ownership. The document emphasizes that effective risk management can help improve project success.
The document discusses risk management strategies for projects. It identifies four types of risks: schedule, budget, operational, and technical. Schedule risks can occur due to wrong time estimation or resource issues. Budget risks include wrong cost estimation and overruns. Operational risks stem from priority conflicts and process impacts. Technical risks involve changing requirements, unavailable technology, complexity, and integration difficulties. External risks outside a project's control include funding issues, market changes, and shifting strategies or government rules. The key is to identify risks early to minimize costs and impacts through avoidance, transfer, acceptance, or mitigation approaches.
Paper on risk management by Samuel Obino MokayaDiscover JKUAT
The document discusses project risk management. It defines risk and explains that identifying and addressing risks is important for project success. The risk management process involves identifying, analyzing, planning for, and monitoring risks. Key risks should be prioritized and contingency plans developed. Potential project risks include those related to technology, people, organizations, and estimations. Thorough risk assessment during project planning and regular risk monitoring are emphasized.
This document discusses various types of risks in project management. It identifies different categories of risk like stakeholder risk, regulatory risk, external risk, execution risk, scope risk, scheduling risk, resource risk, and technology risk. It also describes risk management and techniques to incorporate risk factors in projects, including using a risk adjusted discount rate, certainty equivalent coefficient, sensitivity analysis, probability assignment, standard deviation, coefficient of variation, and decision tree analysis.
This document discusses risk management in project management. It explains that risk identification, probability assessment, and impact estimation are important activities for risk analysis. Risks can be proactively or reactively managed. Proactive management involves formal risk analysis and addressing root causes, while reactive management involves responding to risks as they occur. Key aspects of risk management include identifying risks, analyzing their probability and impact, developing a risk table to plan mitigation strategies, and continuously monitoring and managing risks throughout the project lifecycle.
This document discusses risk management in project management. It defines project risk as an uncertain event that can positively or negatively impact project objectives. It identifies different types of risks and explains the risk continuum from unknown unknowns to known knowns. The document also outlines the five main components of risk management according to PMBOK: 1) define objectives, 2) identify risks, 3) qualify and quantify risks, 4) develop responses, and 5) control risks. It provides examples of identifying, analyzing, and responding to different types of risks in projects.
This Presentation will describe you,
01. What is software project management
02. The Role of Software Project Manager
03. Risk Management
04. People Management
not only these point you will have with example.
Risk management involves identifying potential problems before they damage a project. There are three main types of risks: project risks relating to budget, schedule, or personnel; technical risks regarding specifications or implementation; and business risks like building an unnecessary product. To manage risks, the probability and impact of each potential risk must be analyzed. Contingency plans are then developed to minimize disruption if risks occur. Finally, risks are controlled through avoiding, transferring, or reducing their impact on the project.
This document discusses risk management in software projects. It covers identifying risks through checklists and questionnaires, estimating the probability and impact of risks, and developing contingency plans. Key aspects include identifying risks proactively, analyzing each risk's likelihood and consequences, prioritizing high probability/high impact risks, and monitoring risks and triggers to mitigate potential issues. The overall goal is to anticipate problems before they occur and control risks in order to reduce disruption and keep projects on track.
This document discusses risk analysis and management for projects. It defines risk as a potential problem that may or may not occur, and outlines why identifying and planning for risks is important for project success. The document then covers various aspects of risk analysis and management, including risk strategies, categories, identification, assessment, refinement, and developing plans to mitigate, monitor, and manage risks. The overall aim is to help project teams understand risks and put processes in place to avoid or minimize risks that could negatively impact a project.
The document discusses project risk management from the perspective of a development institution. It provides definitions of risk, project, and project management. Project risk management involves planning, organizing, securing, and managing resources to control the effects of uncertainties on a project's objectives. The document outlines the roots of uncertainty in a project, types of risks, and the risk management process. It emphasizes that risk management should be integrated into an organization's culture and involve identifying, assessing, and prioritizing risks.
Understanding the risks in enterprise project managementOrangescrum
This document discusses risks in enterprise project management. It notes that risks come in many forms, from regulatory to technological, and can seriously impact projects like they did for Nokia and RIM. Effective risk management requires experience, business knowledge, and foresight. Identifying and planning for risks is crucial for success. Common risks include unclear requirements or scope, budget issues, and lack of proper processes. The document provides strategies for setting up risk management, including building a risk register and response plans to mitigate threats and exploit opportunities. It emphasizes implementing project management best practices and tools to track tasks and reduce failures.
This lecture provides short and comprehensive view of software project and risk management. It has basic examples and calculations which is main concern of software project manager. This lecture helps to understand basics of risk management.
Mastering Information Technology Risk ManagementGoutama Bachtiar
This is the presentation slide as part of the courseware utilized when delivering Information Technology Risk Management training - workshop on May 2013.
Similar to PMI project_risk_management_final_2022.ppt (20)
How to Create a Stage or a Pipeline in Odoo 17 CRMCeline George
Using CRM module, we can manage and keep track of all new leads and opportunities in one location. It helps to manage your sales pipeline with customizable stages. In this slide let’s discuss how to create a stage or pipeline inside the CRM module in odoo 17.
Information and Communication Technology in EducationMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 2)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐈𝐂𝐓 𝐢𝐧 𝐞𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧:
Students will be able to explain the role and impact of Information and Communication Technology (ICT) in education. They will understand how ICT tools, such as computers, the internet, and educational software, enhance learning and teaching processes. By exploring various ICT applications, students will recognize how these technologies facilitate access to information, improve communication, support collaboration, and enable personalized learning experiences.
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐨𝐧 𝐭𝐡𝐞 𝐢𝐧𝐭𝐞𝐫𝐧𝐞𝐭:
-Students will be able to discuss what constitutes reliable sources on the internet. They will learn to identify key characteristics of trustworthy information, such as credibility, accuracy, and authority. By examining different types of online sources, students will develop skills to evaluate the reliability of websites and content, ensuring they can distinguish between reputable information and misinformation.
Artificial Intelligence (AI) has revolutionized the creation of images and videos, enabling the generation of highly realistic and imaginative visual content. Utilizing advanced techniques like Generative Adversarial Networks (GANs) and neural style transfer, AI can transform simple sketches into detailed artwork or blend various styles into unique visual masterpieces. GANs, in particular, function by pitting two neural networks against each other, resulting in the production of remarkably lifelike images. AI's ability to analyze and learn from vast datasets allows it to create visuals that not only mimic human creativity but also push the boundaries of artistic expression, making it a powerful tool in digital media and entertainment industries.
The Science of Learning: implications for modern teachingDerek Wenmoth
Keynote presentation to the Educational Leaders hui Kōkiritia Marautanga held in Auckland on 26 June 2024. Provides a high level overview of the history and development of the science of learning, and implications for the design of learning in our modern schools and classrooms.
Creativity for Innovation and SpeechmakingMattVassar1
Tapping into the creative side of your brain to come up with truly innovative approaches. These strategies are based on original research from Stanford University lecturer Matt Vassar, where he discusses how you can use them to come up with truly innovative solutions, regardless of whether you're using to come up with a creative and memorable angle for a business pitch--or if you're coming up with business or technical innovations.
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptxCapitolTechU
Slides from a Capitol Technology University webinar held June 20, 2024. The webinar featured Dr. Donovan Wright, presenting on the Department of Defense Digital Transformation.
4. 4
What is Project Risk?
An event that, if it occurs, causes either a
positive or negative impact on a project
Keys attributes of Risk
– Uncertainty
– Positive and Negative
– Cause and Consequence
5. 5
Risk Management
Risk management is concerned with
identifying risks and drawing up plans to
minimise their effect on a project.
A risk is a probability that some adverse (or
positive) circumstance will occur
– Project risks affect schedule or resources;
– Product risks affect the quality or performance of
the software being developed;
– Business risks affect the organization developing
or procuring the software.
6. 6
Risk Management Process
PMBOK ® Definition
– “The systematic process of identifying, analyzing,
and responding to project risk”
Steps
Risk Management Planning
Risk Identification
Qualitative/Quantitative Risk Analysis
Risk Response Planning
Risk Monitoring & Control
7. 7
Value From Managing Risks
Opportunity to move from “fire-fighting” to proactive
decision making on the project.
Better chance of project success.
Improved project schedule and cost performance.
Stakeholders and team members better understand
the nature of the project.
Helps define the strengths and weaknesses of the
project.
8. 8
Why Not Risk Management?
With so much benefit to managing risk, why is it
often overlooked? :
1. The organization is too busy with real problems to worry
about potential ones,
2. There is a perception that there is not too much that can go
wrong, or
3. They have a fatalistic belief that not much can be done
about risks, or
4. “Shoot the messenger mentality”; fear that disclosure of
project risks will be seen as an indication of project
weakness.
9. 9
All projects have risks, denial does not make them
go away, it just makes you unprepared for them if
they occur.
Risk in itself is not bad, it is how well the project
plans for and reacts to risks that counts.
Formal risk management is a cornerstone of good
project management. Stakeholder visibility into
project risks makes it easier to get additional
resources and organizational support when risks do
occur.
Won’t identified risks make the project
look bad?
10. 10
Risk Management Planning
Plan for the Planning
– Risk planning should be appropriate for the
project
– Question you should ask:
1. How risky is the project?
2. Is it a new technology or something your organization
is familiar with?
3. Do you have past projects to reference?
4. What is the visibility of the project?
5. How big is the project?
6. How important is the project?
11. 11
The Risk Management Plan
What should it include?
– How you will identify, quantify or qualify risk
Methods and tools
– Budget…yes budget
– Who is doing what
– How often
– Risk categories, levels, and thresholds for action.
– Reporting requirements
– Monitoring, tracking and documenting strategies
12. 12
The Risk Management Process
Risk identification
– Identify project, product and business risks;
Risk analysis
– Assess the likelihood and consequences of these
risks;
Risk response planning
– Draw up plans to avoid or minimize the effects of
the risk;
Risk monitoring
– Monitor the risks throughout the project;
14. 14
Identifying Risk
Continuous, Iterative Process
What is it and what does it look like
The sooner the better
The more the merrier
A fact is not a risk (it’s an issue).
Be specific
Don’t try to do everything at once
16. 16
Risks and Risk Types
Risk type Possible risks
Technology The database used in the system cannot process as many transactions
per second as expected.
Software components that should be reused contain defects that limit
their functionality.
People It is impossible to recruit staff with the skills required.
Key staff are ill and unavailable at critical times.
Required training for staff is not available.
Organizational The organization is restructured so that different management are
responsible for the project.
Organizational financial problems force reductions in the project budget.
Tools The code generated by CASE tools is inefficient.
CASE tools cannot be integrated.
Requirements Changes to requirements that require major design rework are proposed.
Customers fail to understand the impact of requirements changes.
Estimation The time required to develop the software is underestimated.
The rate of defect repair is underestimated.
The size of the software is underestimated.
17. 17
Software Risks
Risk Affects Description
Staff turnover Project Experienced staff will leave the project before it is
finished.
Management change Project There will be a change of organizational management
with different priorities.
Hardware unavailability Project Hardware that is essential for the project will not be
delivered on schedule.
Requirements change Project and
product
There will be a larger number of changes to the
requirements than anticipated.
Specification delays Project and
product
Specifications of essential interfaces are not available
on schedule
Size underestimate Project and
product
The size of the system has been underestimated.
CASE tool under-
performance
Product CASE tools which support the project do not perform
as anticipated
Technology change Business The underlying technology on which the system is
built is superseded by new technology.
Product competition Business A competitive product is marketed before the system
is completed.
18. 18
Risk Analysis
Assess probability, seriousness, and urgency
of each risk.
Probability may be very low, low, moderate,
high or very high.
Risk effects might be catastrophic, serious,
tolerable or insignificant.
Urgency might be immediate, short term, or
long term.
19. 19
Analyzing Risk - Qualitative
Subjective
Educated Guess
High, Medium, Low
Red, Yellow, Green
1-10
Prioritized/Ranked list of ALL identified risks
First step in risk analysis!
20. 20
Risk Analysis - Quantitative
Numerical/Statistical Analysis
Determines probability of occurrence and
consequences of risks
Should be focused to highest risks as determined by
Qualitative Risk Analysis and Risk Threshold
21. 21
Risk Analysis (i)
Risk Probability Effects
Organizational financial problems force reductions in
the project budget.
Low Catastrophic
It is impossible to recruit staff with the skills required
for the project.
High Catastrophic
Key staff are ill at critical times in the project. Moderate Serious
Software components that should be reused contain
defects which limit their functionality.
Moderate Serious
Changes to requirements that require major design
rework are proposed.
Moderate Serious
The organization is restructured so that different
management are responsible for the project.
High Serious
22. 22
Risk Analysis (ii)
Risk Probability Effects
The database used in the system cannot process as
many transactions per second as expected.
Moderate Serious
The time required to develop the software is
underestimated.
High Serious
CASE tools cannot be integrated. High Tolerable
Customers fail to understand the impact of
requirements changes.
Moderate Tolerable
Required training for staff is not available. Moderate Tolerable
The rate of defect repair is underestimated. Moderate Tolerable
The size of the software is underestimated. High Tolerable
The code generated by CASE tools is inefficient. Moderate Insignificant
23. 23
Probability & Impact Analysis
Risk Probability Impact Expected Value
1 25% $45,000 $11,250
2 50% $2,000 $1,000
3 30% $100,000 $30,000
24. 24
Risk Response Planning
“What are we going to do about it?”
Techniques/Strategies:
– Avoidance – Eliminate it
– Transference – Pawn it off
– Mitigation – Reduce probability or impact of it
– Acceptance – Do nothing
Strategy should be commensurate with risk
– Hint: Don’t spend more money preventing the risk than the
impact of the risk would be if it occurs
The Risk Response Plan/Risk Response Register
25. 25
Risk Management Strategies (i)
Risk Strategy
Organizational
financial problems
Prepare a briefing document for senior management
showing how the project is making a very important
contribution to the goals of the business.
Recruitment
problems
Alert customer of potential difficulties and the
possibility of delays, investigate outsourcing work.
Staff illness Reorganize team so that there is more overlap of work
and people therefore understand each other’s jobs.
26. 26
Risk Management Strategies (ii)
Risk Strategy
Requirements
changes
Derive traceability information to assess requirements
change impact, and maximise information hiding in the
design.
Organizational
restructuring
Prepare a briefing document for senior management
showing how the project is making a very important
contribution to the goals of the business.
Database
performance
Investigate the possibility of buying a higher-
performance database.
Underestimated
development time
Investigate outsourcing components, investigate use of
a program generator
27. 27
Risk Monitoring
Assess each identified risk regularly to
decide whether or not it is becoming less or
more probable.
Also assess whether the effects of the risk
have changed.
Each key risk should be discussed at
management progress meetings.
28. 28
Risk Monitoring & Control
Continuous, Iterative Process
Done right the risk impact will be minimized:
– Someone IS responsible
– Watch for risk triggers
– Communicate…Communicate…Communicate
– Take corrective action - Execute
– Re-evaluate and look for new risk constantly
Tools:
– Risk Reviews
– Risk Audits
29. 29
Risk indicators
Risk type Potential indicators
Technology Late delivery of hardware or support software, many
reported technology problems
People Poor staff morale, poor relationships amongst team
member, job availability
Organizational Organizational gossip, lack of action by senior
management
Tools Reluctance by team members to use tools, complaints
about CASE tools, demands for higher-powered
workstations
Requirements Many requirements change requests, customer
complaints
Estimation Failure to meet agreed schedule, failure to fix reported
defects
30. 30
Tools & Tricks
Risk Identification Spreadsheet
Risk log Spreadsheet
Templates
Make your own
31. 31
Helpful Links
Project Management Institute (PMI)
– www.pmi.org
CMMI
– www.sei.cmu.edu/cmmi/
PMI Government SIG
– www.pmi-govsig.org
NIH Project Management Center of Excellence
– http://irm.cit.nih.gov/cio/PMExcellence/