Project Management (Risk Analysis)

Project Management -Risk Analysis:

All Projects are exposed to some sort of risks. The risk should be identified addressed and managed. The severity of the risk should be measured and action be taken accordingly as to avoid its impact on overall project deliverable's.

The project risk will vary depending on planning, time, level of experience for other team members and the technology used. Adequate proportion for risk management is required for a successful project. Can verify with a risk management form to be drafted by identifying the risk.

The risk can be technical risk, financial risk or commercial risk etc. The international set standard risks are as follows:

-          Understand and confirm on the objective.

-          Knowing what needs to achieved.

-          Identifying of all risk that may impact on achieving the objective.

-          Involve stakeholders to identify risk factors.

-          Undertake risk assessment -document and analyze the severity of likelihood and impact.

-          Plan the risk Response.

Basically a risk can be responded in 4 ways

-          Accepted

-          Transfer to 3^rd party such as contractor or client as well.

-          Risk can be reduced.

-          Can be avoided.

The risk monitoring review is an ongoing process. The risk management involves to communicate the outcome to stakeholders for proper decision making.

You can draft a design like below to identify the severity of risk and dealing with it:

(Also can call it as risk register)

Risk Identified	Occurrence	Severity	Dependency	Risk Response

for example we can consider the IT Project which i mention in earlier phase.

Risk Identified	Occurrence	Severity	Dependency	Risk Response
Multiple positions for same Employee so grade cannot be applied	Migrating Employees	High	New grade rule and salary process	Refine rule

Can also set the rate for a scale of 1 to 5 for all occurring risks.and inform the higher severity risk to the stakeholders appropriately as it may impact on outcome of project or delay the project or may increase the cost of project.

The acronym PESTLE is mostly considered for analyzing project risk,

P- Political

E- Economical

S- Social

T- Technology

L-Legal

E-Environmental Causes.

The Action taken after finding a risk will be accepting it or transferring it or avoiding it or reducing it.A risk register template should be drafted from our identification session with proposed response.

As a part of risk analysis and plan B should also be drafted after identifying it if its severity is high. For example the plan can revolve around sudden change of team member/stakeholder,change or loss of data.

Even after identifying and drafting a risk response some risk may occur eventually called as residential risk according to its livelihood of occurrence we can avoid it.