RISK is an uncertain or unknown events that can occur any time of project execution and has an positve or negetive impact.Risk Management is a crucial part of Project Management.It aims to attract oppurtinities that has positive impact and decrease the probability of threat that has negetive impact to project.More oppurtinities and less threat signifies a stable project in term of scope , time , Cost and quality.Risk can be of 2 category: Known , Unknown.
Project Risk management contains 6 steps:
1. Plan for how to manage a RISK both known & unknown in davance.It says the overall process on how to
plan,manage for a risk depends on Priority and Impact(Probability & Impact Matrix).Its basically conducted
at the time of Project planning. It defines following :
- Define roles and responsibilty of Risk Management Teasm.
- Look on budgeting for resources for risk management.
- Define the threshold for time frame for the risk to be resolved.
- Define RISK Ctegories and prepare RBS- Risk breakdown structure.
- Prioritize Risk by Risk by Risk&Impact Matix.
- Find stake holder tolerance.
- SWOT Analysis
- Checklist Analysis
- Assumption Analysis
- Process flow chart
- Cause & Effect Diagram
3. Qualitative Risk Analysis by following method:
- Probability &Imapct Matrix
- Categorization method.
4. Quantitative Risk Analysis by following method:
- Probability Distribution
- Expert Judgement
- Sensitive Analysis
- EMV Analysis( Expected Monetary Value)
- Decision Tree Analysis
5. Risk Response Planning by following method:
- Negetive Risk --> Avoid / Transfer / Mitigate
- Positive Risk --> Exploit / Share / Enhance
6- Risk Monitor & Control
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