Project Management Week 7 (32541)

Free float

ES (of successor) - EF (of current activity)

Total float

LS - ES or LF - EF

Risks

possibility of something that can occur that affect your project negatively

involves uncertainty about the effects/implications of an activity. but it can also be positive (opportunity)

Opportunity

something unplanned could exploit to have a positive impact on your project.

Known

Expected

Unknown

Unexpected

What is risk management

structured approach to go looking for uncertainties and their effect on objectives

coordinated activities to direct and control an organisation with regard to risk

Why manage risk

CAUSE - RISK EVENT - EFFECT => COST, TIME, SCOPE, QUALITY

Increase probability & impact of positive events

Decrease probability and impact of negative events

Risk management plan

identify risk, go through all possible, why its significant, what is to be done to reduce/increase it?, when will the risk have its impact in the project who is responsible for resolving, how the reduction/increase will be achieved, how much cost it will take to resolve.

Risks are monitored against the plan as a part of the routine control of the project.

PSR ( project status report) on monthly basis, high critical risks, report to senior manager and they’ll get understand what needs to be done going forward.

Risk management process

Communicate and Consult :

exchange idea, info between stakeholders, objectives, improve understanding, awareness of roles & responsibilities and trust.

Establish context

External: SWOT, key business drivers

Internal: culture, objectives, stakeholders, structure, capabilities of resources, goals

Risk management context: determine scope of what RM exercise applies to, depth and breath, decide on relationships between

Establish risk criteria: define likelihood, infidelity and measure causes and consequences, how level of risk is determined level where risks become acceptable what criteria to use. - maybe affected by perceptions of stakeholders

Define structure: ensure significant risks are not overlooked, separating activity, function , process in to elements that provide framework for identification and analysis (use wbs as starting point)

Risk assessment

Risk identification: identify what the risk events are, identify source, areas of impact, cascading or cumulative effects, generate list, get everything, consider causes and scenarios

tools for identification >
checklists, records, experience, brainstorming, expert advice (SME), systems analysis, modelling.

(risk grouping) :physical, financial, legal, moral/ethical
(risk grouping 2): WBS of risks (technical, external, organisation, project management)
(risk grouping 3): Partial risk profile for product development project (on every aspects)

Risk analysis: important for assigenment Identify controls (factors affecting likelihood & consequences), identify likelihood, check causes sources, identfiy consequence (+ -), identify level of risk

Types of analysis> Qualitative : describing (when generally risk is low or quantitative is unavailable), semi-quantitative, Quantitative: numbers against it, combination

table, graph, decide on when to use one another.

likelihood categories > have to define it.
Almost certain, likely, possible, unlikely, rare

consequence scale > have to define and example too
insignificant, minor, moderate, major, catastrophic

Risk matrix