Risk Management

Inputs

Function

Outputs

Identify and Analyze Project Specific Risk

Risk Identification

Checklists; Interviews; Tolerance ID; Historic and Statistical Data

Risk Analysis, Expert Opinions, Statistical Quantifications

Risk Quantification

Cost Benefit Analysis; Decision Trees; Risk Analysis Tables

Threats and Opportunities

Risk Response

Procurement Plan; Insurance Plan; Alternative Strategies; Contingency Planning

Updated Workplans, Updated Risk Management Plans

Risk Control

Equipment and Resource Redundancy; Corrective Action Plans

Key Factors for Success:   develop and use experienced project personnel; see risks for what they are; don't fear risk but see it as something to control

Key Techniques and Tools:
  manage by phase and break project into modules; get buy-in and prepare contingency plans; don't take risks if there are practical alternatives, the loss cannot be afforded, benefits are unclear or statistics are against successful outcomes

Key Concepts:
  larger projects have higher risk associated with them; in-experienced resources have higher risk; technical environment affects risks; not all risk is negative

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