Generic Project Risk Assessment

This Project Risk Assessment has been designed for business projects, IT infrastructure
projects and general [i.e.] non-software development projects.

Three main categories of risk factors have been identified as contributing to the risk of a
project or, the probability of project failure. These are the client environment, the team
environment and the product or service complexity. Each of these categories has a number
of related factors, which have been allocated a low, medium or high score. The sum of the
factor scores provides an indication of the degree of risk in the total project.

A guide to the value for each factor is shown against each question but any value within
the specified range may be used.

Risk Assessment Weights

The weighting factors included are based on the thomsett companies many years of
experience in the field of IT Risk Assessment.

The results of the questionnaire should be compared against the following table:

Risk Category Low Low/Medium Medium Medium/Hig High

h
Client 44-96 97-149 150-202 203-255 256-313
Environment
Team 55-86 87-118 119-150 151-182 183-209
Environment
Product 51-77 78-104 105-131 132-158 159-184
Total Project 150-260 261-372 373-484 485-596 597-706

Given the subjective nature of the process, the use of scores to compare projects is not
valid. For example, a project with a Total Risk score of 490 is still a Medium/High risk
project as is one with a Total Risk score of 596. The use of the broad categories of Low,
Low/Medium, Medium, Medium/High and High is the acceptable approach.

Weighte
Risk Situation Impact Score Weight d Score

Risk Category : Client Environment

1. Will clients commit to a standardised product development approach?

Yes Low 0 2 0
No High 2 4

2. Have clients been briefed and are prepared to commit to change control procedures?

Yes Low 0 4 0
No High 4 16

3. How committed is senior client management to product?

Extremely Enthusiastic Low 1 4 4

Supportive High 2 8
Neutral High 3 12
Negative Very High 4 16

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 Generic Project Risk Assessment
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Risk Situation Impact Score Weight d Score

4. Is there a Project Sponsor?

Yes Low 0 4 0
No High 4 16

5. Priority for project within client group?

High Low 0 3 0
Average Medium 2 6
Varied Medium 3 9
Low High 4 12

6. How critical will product be to the client group continuing operations when completed?

Minor impact Low 1 3 3

Some impact Medium 2 6
Significant impact Medium 3 9
Critical - showstopper High 4 12

7. Number of outside organisations involved in concurrence, approvals and other decisions

relating to the product?

None Low 0 4 0
1 High 3 12
Greater than 1 Very High 4 16

8. Number of different client Branches or groups involved in concurrence, approvals and

other
decisions relating to the product?

1 Low 1 4 4
2 Medium 2 8
Greater than 2 High 4 16

9. Number of individual clients/direct product users?

Less than 10 Low 1 3 3

11-100 Medium 2 6
101-1000 High 3 9
Greater than 1000 Very High 4 12

10. Number of unions and/or staff associations involved in the product?

None Low 0 4 0
1 Medium 2 8
Greater than 1 High 4 16

11. Attitude of unions/staff associations towards project?

Extremely Enthusiastic Low 1 4 4

Supportive High 2 8
Neutral High 3 12
Negative Very High 4 16

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 Generic Project Risk Assessment
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Risk Situation Impact Score Weight d Score

12. Number of client sites/installations involved with the product?

1 Low 1 3 3
2-10 Medium 2 6
11-101 High 3 9
Greater than 100 Very High 4 12

13. What is the severity of procedural changes/disruption in client department/area caused

by
proposed product?

Minor Low 1 3 3
Some Medium 2 6
Significant High 4 12

14. Does client organisation have to change structurally for proposed product?

No Low 1 3 3
Minor Medium 2 6
Significantly High 4 12

15. Organisational attitude towards change?

Extremely Enthusiastic Low 1 4 4

Supportive High 2 8
Neutral High 3 12
Negative/Resistance Very High 4 16

16. Critical stakeholder participation?

Full-time expert Low 1 4 4

Part-time expert Medium 2 8
Ad-hoc participation High 3 12
None Very High 4 16

17. How knowledgeable is client representative in proposed product type or class?

Expert – previous Low 1 3 3

implementation
experience
Knowledgeable – some Medium 2 6
previous experience
Novice – no previous High 4 12
experience

18. How knowledgeable is client in product development process?

Expert – previous Low 1 3 3

implementation
experience
Knowledgeable – some Medium 2 6
previous experience
Novice – no previous High 4 12
experience

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 Generic Project Risk Assessment
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Risk Situation Impact Score Weight d Score

19. What are communications between client group/s and product development group like?

Good Low 1 3 3
Fair Medium 2 6
Poor High 4 12

20. Is new client - controlled technology/techniques (e.g. monitoring equipment, graphics

terminals, CAD/CAM, etc) required for the product?

None Low 0 3 0
Some Medium 1 3
Significant High 3 9

21. Is the project dependent on a single client expert?

No Low 0 4 0
Yes High 4 16

22. Is there government legislation that the project is dependent on to meet deadlines?

No Low 0 4 0
Yes High 4 16

23. Is the project dependent on vendors and outside consultants/experts to meet

deadlines?

No Low 0 4 0
Partially Medium 2 8
Completely High 4 16

Risk Criterion: Team Environment

1. Priority of project within product development group is?

High Low 1 3 3
Medium Medium 2 6
Low High 4 12

2. How committed is senior product development group management to product?

Enthusiastic Low 1 4 4
Supportive Medium 2 8
Neutral High 3 12
Negative Very High 4 16

3. Project team size (including full-time business professionals)?

Less than 5 Low 1 4 4

5-10 Medium 2 8
Greater than 10 High 4 16

4. Total estimated development time in calendar months for product?

Less than 3 months Low 1 4 4

3-6 months Medium 2 8
7-12 months High 3 12
Greater than 12 months Very High 4 16

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 Generic Project Risk Assessment
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Risk Situation Impact Score Weight d Score

5. Project Manager (PM) availability, experience and training?

PM with successful recent Low 1 4 4

experience in similar
project
PM with successful recent Low 2 8
experience
PM with knowledge but High 3 12
little experience
Inexperienced PM with Very High 4 16
limited PM knowledge

6. Key project skill and staffing level requirements can be met by?

Team members full-time Low 1 4 4

Mix of full-time and part- Medium 2 8
time members
Part-time members High 3 12
Ad-hoc membership Very High 4 16

7. What proportion of project team will be brought in from an outside company/group?

Less than 25% Low 1 4 4

26-50% Medium 2 8
51-99% High 3 12
All Very High 4 16

8. Number of team members who have worked successfully together on previous projects?

All Low 1 3 3
Some Medium 2 6
None High 3 9

9. How knowledgeable is product development group project team in proposed product

client's
area?

Have been involved in Low 1 2 2

prior implementations
Understands client’s area Medium 2 4
- no previous
implementation
experience
Mixed High 3 6
Limited Very High 4 8

10. What experience does the project team have with the product technology/techniques to
be
used?

Significant Low 1 4 4
Somewhat Medium 2 8
Limited High 3 12
None Very High 4 16

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 Generic Project Risk Assessment
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Risk Situation Impact Score Weight d Score

11. Relevant support tools and technology available to the team?

Extensive Low 1 3 3
Available Medium 2 6
Limited High 3 9
None Very High 4 12

12. Project deadlines are?

Flexible – may be Low 1 4 4

established in conjunction
with team
Firm - established Medium 2 8
internally but missed
dates may impact client
operations
Fixed - established by High 4 16
specific operations, legal
requirements, direction
beyond organisation's
control

13. The team will be located in?

Single office (co-located) Low 1 4 4

Multiple offices (single Medium 2 8
building)
Multiple buildings (same High 3 12
city)
Different cities Very High 4 16

14. The physical working environments/offices that the team occupy?

Excellent Low 1 4 4
Average Medium 2 8
Poor High 3 12

15. The morale of people working in the project/group?

Excellent Low 1 4 4
Average Medium 2 8
Poor High 3 12

Risk Criterion: Product/Service Complexity

1. Proposal document from clients/Business Analyst?

Complete Low 1 2 2
Acceptable but Medium 2 4
incomplete
None High 3 6

3. Product/service performance expectation is?

Throw-away Low 1 4 4
Average (1-3 years) Medium 2 8
Critical (> 3 years) High 4 16

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4. Current documentation for existing similar products?

Complete Low 1 2 2
Acceptable but Medium 2 4
incomplete
None High 3 6

5. Available prototype or model?

Similar product/service in Low 1 3 3

existence
Some functionality exists Medium 2 6
within organisation
Some functionality exists High 3 9
in other organisations
None High 4 12

6. Overall size of product/service?

Small Low 1 4 4
Medium Medium 2 8
Large High 3 12
Super Large Very High 4 16

7. Intrinsic complexity of product is?

Simple Low 1 4 4
Average Medium 2 8
High High 3 12
Extensive Very High 4 16

8. The product developed must interface with?

Stand alone Low 1 4 4

Products within teams Medium 2 8
control
Products under others High 3 12
control
Complex products under Very High 4 16
others control

9. Stability of product requirements ?

Requirements are stable Low 1 4 4

Requirements are firm but Medium 2 8
exposed to change
Requirements are firm but High 3 12
likely to change
Requirements are Very High 4 16
completely unstable

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 Generic Project Risk Assessment
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Risk Situation Impact Score Weight d Score

10. Level of innovation required by the product is?

Simple Low 1 4 4
Average Medium 2 8
Extensive High 3 12
Very Innovative Very High 4 16

11. Product technology availability is?

Currently available Low 1 4 4

Limited Medium 2 8
Not currently available High 3 12

12. Client expectations of product quality is?

Simple Low 1 4 4
Average Medium 2 8
High High 3 12
Very High Very High 4 16

13. The degree of policy/legislation change required for successful product implementation
is?

None Low 1 4 4
Some Medium 2 8
Extensive High 3 12

14. The degree of new or unproven technology/techniques required for successful

implementation are?

None Low 1 4 4
Some Medium 2 8
Extensive High 3 12

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