Evaluate and Reduce Project Risk
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.
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Project management process, methods, and tools mitigate project risk.
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All projects have some risk.
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The key question is; how much risk is tolerable?
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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
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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
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Project management balances the 3 sides of a triangle, Schedule, Cost, and Deliverables Quality
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These 3 elements are interrelated, change one or when you absolutely need to meet one the other two will be affected
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Assumptions Drive Risk:
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Identify what’s being assumed
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If you assume something will or won't happen that's a risk
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Assign someone on the core team record assumptions and identify risks
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To identify what someone is assuming observe what’s stated and implied
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Validate assumptions
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Ask seemingly dumb questions
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"It appears that you're assuming that..., is that true?
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Describe the risk items
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Quantify & prioritize each item
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Quantify each risk item’s impact on a scale of 1 – 5 with 1 = low, 5 = high & probability % that it will happen.
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Multiply impact X probability. Example Impact 4 X Probability of 95% 4 X .95 = 3.8.
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Develop a mitigation plan for the top items & include the mitigation plans in the project.
