Risk Assessment
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Transcript of Risk Assessment
Risk Identification and PlanningSarah Klobe Technical Project Manager
Agenda
• 10 PBED• 10 Risk Management Process
Overview• 70 Risk Identification
• 15 Break
• 60 Risk Qualification• 60 Risk Response Plan• 15 PBED - Feedback/Debrief
Risk Management Process Overview
• Risk Management Plan• Risk Identification• Risk Qualification • Risk Quantification• Risk Response Planning• Risk Monitoring and Controlling
Risk Identification
• Risks can be good or bad!• Risk Identification Tools• Charter• WBS• Network Diagram
• Write well-defined risks• Be Creative• Do not fill in Probability, Impact or
Category• DO NOT SOLVE!!!
Risk Identification
Writing a Well-Defined Risk• Follows the “Cause-Risk-Effect” format
– Due to (definitive cause), (uncertain event) may occur which would/could/may lead to (effect)
Risk Identification
• Identify as many risks as possible• What are risks related to this project
as a whole?• What are the related risks for each
task?• What are the risks by category?• Be creative• 70 minutes• Reminder – Do NOT solve!
Risk Qualification
• Probability – the likelihood a risk will occur
• Impact – the effect the risk will have on the project if it occurs
• Risk Ranking – Probability x Impact
Risk Qualification
• Goal – Identify the Top Risks vs. Non-Top Risks
• Place your risks on the Probability & Impact Chart
• Once all risks have been placed, Review risk ratings and mark risks you want to discuss
Risk Qualification
Impact Scale:10 Project Failure
9 Over budget by 40% or project delayed by 40%
8 Over budget by 30% to 40% or project delayed by 30% to 40%
7 Over budget by 20% to 30% or project delayed by 20% to 30%
6 Over budget by 10% to 20% or Project delayed by 10% to 20%
5 Slightly over budget
4 Large increase in time required but within budget
3 Medium increase in time required
2 Small increase in time required
1 No real impact
Risk Qualification
• Identify Facts• Probability > 8• Must account for these in project planning
• Identify Threshold• Logical break in risks
• Identify Watch List• Risks that fall below the threshold
Risk Response Plan
• Eliminate risk before it happens
• Contingency Plan - IF the risk happens then do this
• Fallback Plan - IF the Contingency plan is not effective then do this
Risk Response Plan
• Risk Trigger• An early warning sign that a risk has occurred or
is about to occur
• Risk Owner• A person who is assigned to watch for triggers
and is responsible for carrying out the risk response plan if the risk occurs
• Risk owners have valuable insight into risk analysis as well as planning response
Risk Response Plan
Name Description
Mitigate the Probability Reduce the likelihood that the event will occur
Mitigate the Impact Reduce the effect if the event does occur
Avoid Eliminate the cause
Accept Do nothing
Transfer Assign risk to someone else by sub-contracting or purchasing insurance
Feedback/Debrief
• What did you like?• What didn’t you like?• How could this process be improved?• PBED
• Thank you!!