Risk: One of the most important component for any of the Project Planning related activities.
Does this scenario seem familiar : “Ah, you know what we planned that we will be able to create this webservice in a week’s time, and suddenly this the Dev is not available!” So? You planned for this…right, this is a risk? Yeah…Ummm…you know what, I didn’t…!!! What???
Well this must be familiar with many of us under various circumstances as we move ahead in our projects. Hence Identifying and analyzing the project risks is a massive opportunity for us as a project manager to make sure that the deliverable are running on time. So, How do we do this?
Now this is where things gets slightly trickier as we move! The identification of risk involves following two aspects:
- Monitoring the Risk (This is part of PMC – Project Monitoring and Control)
- Risk Management (This is part of Risk Management – RSKM)
We will talk about these in near future, but for the sake of this discussion let’s talk about why Risk identification is necessary?
Risks are identified or discovered and analyzed to support project planning. Now this is an exercise which should take place across all plans that affect the project to ensure that there is an interface among all relevant stakeholders on identified risks.
Remember this : While doing project planning, the project plan is supported by various documents, and hence Identifying the Risk is a filler for Project Planning, which means that this filler itself has a procedure to be followed.
- We should identify the Risks.
- Analysis of the risk, and determination of the impact, probability of occurrence
- Giving priority to the risks
Let’s talk about how do we identify the risks:
Examples of risk identification and analysis tools may include the following:
- Risk assessments
- Structured interviews
- Process, project, and performance models
- Cost models
Once this is done, then we document the risk, and review and obtain the stakeholders approval and agreement.
Once you’re done with doing Risk identification, you should have answers to the following questions:
How are Risks identified and analyzed?
The answer for this should be:
Well, we have a list of identified risks, and we call this a risk watch list, a risk plan, which has got documented analysis of the risks, and very importantly we do have a Standard set of typical risks for specific type of projects.
We will be talking about other aspects of Project Planning and probably by the end of this week you all should have better understanding of how to do Project Planning. Cheers!
- CMMi – Project Planning – Estimation (seeingfuture.wordpress.com)
- CMMi – Project Plan – Introduction (seeingfuture.wordpress.com)
- CMMi Process areas and mapping with Maturity levels (seeingfuture.wordpress.com)
- CMMi – Project Planning – Estimation Continued! (seeingfuture.wordpress.com)