|
| |
John Spacey, January 21, 2018 updated on April 12, 2023
Project risk management is the process of identifying, analyzing, treating and controlling project risk. This is a basic project management practice that is required due diligence in many industries. The following is an overview of the project risk management process.
Generating a list of project risks. All stakeholders are given an opportunity to identify risks with subject matter experts playing a key role. It is also common to reference a database of issues and failures that impacted similar projects.
Assessing the probability, impact and timing of risks.Deciding how risks will be treated including risk acceptance, transfer, mitigation, risk avoidance and sharing.
Documenting the risk that remains after treatment including secondary risks.Producing a document that captures risks and the steps that will be taken to treat risk.Stakeholders approve the risk management plan and accept the residual risk in the plan.
Implementing the treatments identified in the risk management plan.The process of monitoring risk to prepare to manage issues. A risk that occurs is known as an issue. The moment that a risk occurs the process passes to issue management.
Risk MetricsMeasuring the risk remaining in a project. A project begins in uncertainty and risk. Generally speaking, risk declines as you move closer to achieving objectives. New risk is introduced by change to project scope.Generally speaking, the risk management process is repeated when scope is changed.
Communicating project risk to support decision making and to set stakeholder expectations. For example, if stakeholders accept a high level of risk it is communicated that the project has a high probability of missing its dates and going overbudget.
If you enjoyed this page, please consider bookmarking Simplicable.
A list of common project risks.
A list of common project risks.
A list of common project stakeholders.
A list of common business risks.
The difference between a risk and an issue.
The four things that can be done about risk.
The definition of secondary risk with examples.
A guide to creating a risk register with an example.
A definition of risk perception with examples.
The common types of implementation.
A list of basic project management techniques.
A definition of workaround with examples.
A list of project branding techniques.
A definition of project stakeholder management with examples.
A definition of action plan with examples.
The primary types of cost overrun.
The definition of document control with examples.
A guide to project oversight.
A definition of design driven development with examples.
TrendingThe most popular articles on Simplicable in the past day.
Recent posts or updates on Simplicable.
Site Map
© 2010-2023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.
|
