Preparing for Risk Identification

 < Day Day Up > 



The risk management plan is one of the key inputs to the risk identification process. It describes how the risks will be identified, requirements for risk analysis, and the overall management of the risk response process. The risk management plan does not include the actual responses to the risks, but rather the approach to the management of the process. In addition to the risk management plan, there are several other inputs to the risk identification process.

Relying on Project Planning

Effective risk identification requires an understanding of why the project exists. The people doing the risk identification have to understand the project’s purpose in order to recognize risks that could affect the project. These risk identifiers should understand the customer’s objectives, expectations, and intent.

Project planning outputs referenced here can include:

  • The project charter

  • The work breakdown structure

  • Duration estimates

  • The network diagram

  • The project schedule

  • Cost estimates

  • The project budget

  • Quality plans

  • Resource requirements

  • The resource management plan

  • Procurement issues

  • Communication requirements

  • Assumptions

  • Constraints

Creating Risk Categories

As risks are identified within the project, they should be categorized. Risk categories should be identified before risk identification begins—and should include common risks that are typical in the industry where the project is occurring. Risk categories help organize, rank, and isolate risks within the project. There are four major categories of risks:

  • Technical, quality, or performance risks Technical risks are associated with new, unproven, or complex technology being used on the project. Changes to the technology during the project implementation can also be a risk. Quality risks are the levels set for expectations of impractical quality and performance. Changes to industry standards during the project can also be lumped into this category of risks.

  • Project management risks These risks deal with faults in the management of the project: unsuccessful allocation of time, resources, and scheduling; unacceptable work results (low-quality work); and lousy project management as a whole.

  • Organizational risks The performing organization can contribute to the project’s risks through unreasonable cost, time, and scope expectations; poor project prioritization; inadequate funding or the disruption of funding; and the competition with other projects for internal resources.

  • External risks These risks are outside of the project but directly affect it: legal issues, labor issues, a shift in project priorities, and weather. “Force majeure” risks can be scary and usually call for disaster recovery rather than project management. These are risks caused by earthquakes, tornados, floods, civil unrest, and other disasters.

Referring to Historical Information

Historical information is always an excellent source of information for risk identification. If the performing organization has done similar projects in the past, the historical information should be able to shed light on the risks identified early in the project, as well as risks identified throughout the project, and provide information in the final project reports. In addition to the documentation, stakeholders of the original project may have information to offer based on their experience within the project.

Historical information can also come from sources outside of the organization. The project manager should consider referencing commercial databases, articles, studies, and other readily available material relevant to the project work.



 < Day Day Up > 



PMP Project Management Professional Study Guide
PMP Project Management Professional Study Guide, Third Edition (Certification Press)
ISBN: 0071626735
EAN: 2147483647
Year: 2004
Pages: 209

flylib.com © 2008-2017.
If you may any questions please contact us: flylib@qtcs.net