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Monday, 08 December 2008 16:13

Collaborative Tools and Techniques to Build the Project Risk Plan – Risk Ident. Process (3 of 6)

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The Risk Identification Phase begins the repeatable part of the Risk Management Process, and occurs after completing the Risk Definition activity, in the facilitated meeting. Risk Identification is the process of exposing and recording all foreseeable risks to the project objectives. The Risk Register is the key deliverable used to track risks, and is built in waves during the facilitated meeting. This deliverable is initiated with the identification of project risks. During the Risk Identification Process, the meeting participants are led through an activity allowing them to distinguish between the cause of the risk, the risk itself and the effect of the risk occurring (positive or negative). It is typical on a project that 80% of the risks are a result of 20% of the causes.


We start the Risk Identification activity, by reviewing the project scope deliverables (Constraints, Assumptions, CSFs, SWOT Analysis), and brainstorming the possible risk statements. Once the brainstorm subsides, the participants review each statement and clarify it to ensure that they have clearly differentiated cause, risk and impact in each statement.  To make this activity simpler, we have adopted a Risk Meta-Language technique (Hillson, 2004, p73).

The elements of the Risk Meta-Language are:

  • As a result of , an may occur, which would lead to .
  • Example of using risk meta-language:
  • As a result of not being able to control the availability of our project resources, we may have to develop the critical data interfaces with less experienced staff, which would affect our ability to deliver the complete interface solution for the project.

This technique provides an easy way to group related risks, by cause, whereby addressing one cause can eliminate multiple risks, and their impacts to the project.  The “definite cause” describes facts or conditions that exist in the project environment, which give rise to the uncertainty, and we use present tense verbs to describe this. The “uncertain event” describes uncertainties that may or may not occur, and if they do, they affect one or more of the project objectives. We use conditional verbs to describe the “uncertain event”. Finally, the “effect on the project objectives” describes the unplanned variations from the Project Objectives of cost, schedule, quality, or scope, and we use future tense verbs to describe this.


 exhibit_3_risk_identification_example.png
Exhibit 3: Risk Identification Example


Collaborative Tools and Techniques to Build the Project Risk Plan – Overview (1 of 6)

Collaborative Tools and Techniques to Build the Project Risk Plan – The Risk Mgt Process (2 of 6)

Collaborative Tools and Techniques to Build the Project Risk Plan – Risk Ident. Process (3 of 6)

Collaborative Tools and Techniques to Build the Project Risk Plan - Risk Assessment Process (4 of 6)

Collaborative T&T to Build the Project Risk Plan – Risk Response Identification Process (5 of 6)

Collaborative T&T to Build the Project Risk Plan – Risk Monitoring and Review Process (6 of 6)



References

Project Management Institute. (2004) A guide to the project management body of knowledge (PMBOK) (2004 ed.).  Newtown Square, PA: Project Management Institute.

Hillson, David. (2004) Effective Opportunity Management for Projects – Exploiting Positive Risk, New York, NY: Marcel Dekker Inc.
 
For more information on methods to close the gap on your projects between project management theory and practical tools and techniques to apply this theory, contact Solutions Cube Group at www.SolutionsCubeGroup.com

 


Read 14921 times Last modified on Monday, 07 December 2009 05:20
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