Tag Archives: Risk

Risk Management

What is Risk?

Risk is an uncertain event or condition that, if it occurs, has an effect on at least one project objective. Objectives can include scope, schedule, cost, and quality. A risk may have one or more causes and, if it occurs, it may have one or more impacts. A cause may be a requirement, assumption, constraint, or condition that creates the possibility of negative or positive outcomes.

Known & Unknown Risks & Issues

Known risks are those that have been identified and analyzed, making it possible to plan responses for those risks. Specific unknown risks cannot be managed proactively, which suggests that the project team should create a contingency plan. A project risk that has occurred can also be considered an issue.

What is Risk Management?

Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and monitoring and control on a project. The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of negative events in the project.

Risk Management Activities

  1. Plan Risk Management: The process of defining how to conduct risk management activities for a project.
  2. Identify Risks: The process of determining which risks may affect the project and documenting their characteristics.
  3. Perform Qualitative Risk Analysis: The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
  4. Perform Quantitative Risk Analysis: The process of numerically analyzing the effect of identified risks on overall project objectives.
  5. Plan Risk Responses: The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.
  6. Monitor and Control Risks: The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

More Detailed Information about each activity of Risk Management Activities will blogged Separately along with related Templates and Guidelines.

Source: Project Management Body of Knowledge (PMBOK® GUIDE).” Project Management Institute. 2008.

Project Status Reporting

One of key elements of the project management is the status reporting, which communicate critical project information between relevant stakeholder, delivering effective information to the right people in a timely manner is a key to successful projects.

What information should be included in the Project Status Report?

Information included in status report differ from project to project regarding different characteristics such Project Size, involved Stakeholders, organization structure, But there are a typical information for project reporting like:

Project Budget and Costing: focus on actual cost and compare it regarding the baselined budget, the right way to present this section is through Earned Value Management (EVM)

Project Schedule: Focus on accomplished work against the schedule.

Project Milestones: status of project milestones

Project Risks: status of Project Risks and status of mitigation or contingency actions taken against the risks.

Project Issues:  reports of issues raised during the project execution and action items taken against those issues.

Project Changes:  how changes affect the project progress and what action taken against the changes and how changes handled through project execution.

How frequent should a report be produced?

The answer of this question vary from project to project based on the project size, and activity duration, it could be weekly, bimonthly or monthly in large projects.

The timely report will enable relevant stakeholder to take required decision to keep the project in safe zone.

Project Status Report Template

Project Status Report template could be found in this site under templates page.