Library

Evaluate and Reduce Project Risk

Work Package

The only projects that don't have risk are when it doesn't matter how long it will take, it doesn't matter how much it will cost, & it doesn't matter what will be implemented.

  • Project management process, methods, and tools mitigate project risk.

  • All projects have some risk.

  • The key question is; how much risk is tolerable?

  • The less risk you can tolerate or accept the more process you need, the more knowledge and skills, and the more effective your methods and tools need to be

  • The more your project needs to be completed by a specific date, at a specific cost, and deliver specific deliverables and behavior the more you need a project management process

  • Project management balances the 3 sides of a triangle, Schedule, Cost, and Deliverables Quality

  • These 3 elements are interrelated, change one or when you absolutely need to meet one the other two will be affected

  • Assumptions Drive Risk:

  • Identify what’s being assumed

  • If you assume something will or won't happen that's a risk

  • Assign someone on the core team record assumptions and identify risks

  • To identify what someone is assuming observe what’s stated and implied

  • Validate assumptions

  • Ask seemingly dumb questions

  • "It appears that you're assuming that..., is that true?

  • Describe the risk items

  • Quantify & prioritize each item

  • Quantify each risk item’s impact on a scale of 1 – 5 with 1 = low, 5 = high & probability % that it will happen.

  • Multiply impact X probability. Example Impact 4 X Probability of 95% 4 X .95 = 3.8.

  • Develop a mitigation plan for the top items & include the mitigation plans in the project.