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    Managing Risks in Projects: Unit 3

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    inderjeetghotra
    This document discusses managing risks in projects. It defines risk as the possibility of exposure to hazards or loss. The two key components of risk are likelihood and impact. The sources of project risk can be internal, such as technical or financial issues, or external, such as market conditions or supplier relations. Several techniques are presented for identifying risks, including analogy, checklists, work breakdown structure analysis, and process flowcharts. Risk response planning involves transferring, avoiding, preparing contingencies for, or accepting risks. Effective project management involves creating a risk management plan and continuously monitoring and addressing risks.

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    Managing Risks in Projects: Unit 3

    Uploaded by

    inderjeetghotra
    926 views12 pages
    This document discusses managing risks in projects. It defines risk as the possibility of exposure to hazards or loss. The two key components of risk are likelihood and impact. The sources of project risk can be internal, such as technical or financial issues, or external, such as market conditions or supplier relations. Several techniques are presented for identifying risks, including analogy, checklists, work breakdown structure analysis, and process flowcharts. Risk response planning involves transferring, avoiding, preparing contingencies for, or accepting risks. Effective project management involves creating a risk management plan and continuously monitoring and addressing risks.

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    Risk Management

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    This document discusses managing risks in projects. It defines risk as the possibility of exposure to hazards or loss. The two key components of risk are likelihood and impact. The sources of project risk can be internal, such as technical or financial issues, or external, such as market conditions or supplier relations. Several techniques are presented for identifying risks, including analogy, checklists, work breakdown structure analysis, and process flowcharts. Risk response planning involves transferring, avoiding, preparing contingencies for, or accepting risks. Effective project management involves creating a risk management plan and continuously monitoring and addressing risks.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    926 views12 pages

    Managing Risks in Projects: Unit 3

    Uploaded by

    inderjeetghotra
    This document discusses managing risks in projects. It defines risk as the possibility of exposure to hazards or loss. The two key components of risk are likelihood and impact. The sources of project risk can be internal, such as technical or financial issues, or external, such as market conditions or supplier relations. Several techniques are presented for identifying risks, including analogy, checklists, work breakdown structure analysis, and process flowcharts. Risk response planning involves transferring, avoiding, preparing contingencies for, or accepting risks. Effective project management involves creating a risk management plan and continuously monitoring and addressing risks.

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    Download as PPT, PDF, TXT or read online from Scribd
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    of 12

    Unit

    3:
    Managing Risks in
    Projects
    Source: Project Management
    for Business and Technology

    BY John Nicholas
    Objective of Study
     Definition: Risk in Projects
     What are the sources of Risk?

     Risk Response Planning

     Project Management is Risk


    Management
    Definition: Risk

     Risk : “Possibility of exposing to


    danger,hazards,loss,injury”-Dictionary
    Meaning.
     Risk is associated with project about
    technical ,schedule, Cost outcomes
     From the investment point of view, Risk
    can be defined as the variability of return
    Risk Concepts
     Risk is function of the Uniqueness of a
    project and the experience of the
    project team.
     The notion of the project risk involves
    Two concepts
     1. The Likelihood that some
    problematical event will occur.
     2.The impact of the event if it does
    occur.
     Risk = f (Likelihood , impact )
    Risk identification
     Risk of Failure: which implies that
    project might fall short of schedule,
    budget, or technical goals by large
    margin.
     Risk of Opportunity: which are events
    that could lead to rewards, savings or
    benefits

     The
    main emphasis of the risk
    management is on determining the risk
    Ways to identify the
    Project risk
     Project Chronology: (Project feasibility,
    contract negotiation, engineering concept, or
    system definition design and development).
     Type of the work or technical function:

    (Engineering risk, production risk)


    High risks in project typically stem from…
     Using an unusual approach
     Attempting to further technology
     Training for a new task or applying new skills
     Developing and testing new equipment, system, or
    procedure
    Sources of risk
     Any factor with an uncertain probability of occurring that
    can influence the outcome of a project is considered a risk
    source or risk hazard.
     Risk can be classified as Internal risks and
    external risks

     Internal risk :Internal risks originate inside the


    project
    (Business Risk, Financial Risk and Technical risk)
    (Technical Risk: Maturity, Complexity, Quality,
    Concurrency or Dependency)
     External risk: risks that stem from outside the
    project.
     (Market conditions, Competitors' action, Interest
    rates ,Customer needs, Supplier relations,
    Weather, Labor availability )
    Risk Identification
    Techniques
     Project risks are identified from the analysis of
    the numerous documents
    ( past projects, lists of users needs and
    requirements, WBS, cost estimates, schedules
    and schematics and models of end-item)
    Techniques for pinpointing the risks are…..
    4. Analogy
    5. Checklists
    6. WBS analysis
    7. Process flowchart
    8. Brainstorming
    Risk Identification
    Techniques
    Analogy Checklists
     Records  List the factors that
     Post-Completion
    can affect the risk
    in a project and
    summaries also specify the risk
     Notes from Project level associated
    Team with the factors
     Similar projects to
    identify the risk
    Risk Identification
    Techniques
    WBS analysis Process flowchart
     Every Work package is  Flowchart illustrates
    scrutinized for potential steps, procedures and
    problems with mgmt, flow between the
    customers, suppliers activities.
    ,resource availability and  Pinpoint the trouble spots
    technical hurdles and area of risks

     Brainstorming
    Experience people share
    opinion and generate the
    idea about the possible
    problems or hazards in
    the project
    Risk Response Planning
    Response resource planning addresses the
    matter of how to deal with the risk

     Way to deal with the Risk…………..


     1.Transfer the risk
     2.Alter the plan or procedure to avoid /reduce the
    risk
     3. Preparing the contingency plan
     4.Accepting the risk
    Project management is
    Risk Management
     Risk Management Principles
    1. Create risk management plan and risk profile
    2. Appoint risk officer
    3. Budget and schedule for dealing with risks as
    they materialized
    4.Risk must be continuously monitored
    5.Establish communication channel
    6.Maintain documentation

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