Risk

Risk

1. an uncertain event that, if it occurs, can have a positive or negative effect on a project's objectives

2. Plan Risk Management

   • Risk Attitude
     • Risk Appetite
       • degree of uncertainty an entity is willing to take on
     • Risk Tolerance
       • degree, amount, volume of risk that an organization will withstand
     • Risk Threshold
       • measures along the level of uncertainty at which a stakeholder may have a specific interest
   • Risk Management Plan
     • includes: methodology roles and responsibilities budgeting timing risk categories definitions of risk probability and impact P&I matrix revised stakeholder tolerances reporting formats tracking

3. Identify Risks

   • Risk Register
     • list of risks list of responses

4. Risk Analysis

   • Qualitative
     • Probability & Impact Assessment/Matrix
   • Quantitative
     • Data gathering and representation
       • Interviewing
       • Probability distribution (cdf)
     • Risk analysis and modeling
       • Sensitivity Analysis
         • which risks have most potential impact tornado diagram
       • Expected monetary value anlaysis
         • Decision tree
       • Modeling and simulation
         • Monte Carlo
   • Information Gathering Techniques
     • Brainstorming
     • Delphi
     • Interviewing
     • Root Cause Identification
     • SWOT Analysis

5. Types of Risk

   • Technical
     • quality performance technical failure poor assumptions
   • Project Management
     • schedule cost incomplete planning lack of discipline
   • Organizational
     • lack of prioritization inadequate funding, time, resource resource conflict
   • External
     • regulations labor issues political issues acts of god

6. Strategies

   • Threats (-)
     • Avoid
       • Change the project plan
     • Transfer
       • Shift impact to third party
     • Mitigate
       • Reduce probability/impact
     • Accept
       • Ignore Develop Contingency Plan
   • Opportunities (+)
     • Exploit
       • Make sure it happens
     • Share
       • Allocate ownership to third party
     • Enhance
       • Increase Probability
     • Accept
       • Ignore Develop Contingency Plan