Basic Steps for Project Risk Management

Basic Steps for Project Risk Management

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 which tool and method to be used.
              - 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.

2. Identify a Risk by following method:
              - Brainstorming
              - Delphi
              - 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
              - Simulation
5. Risk Response Planning by following method:

              - Negetive Risk --> Avoid / Transfer / Mitigate
              - Positive Risk --> Exploit / Share / Enhance
              - Acceptance

6- Risk Monitor & Control



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Thanks, -Pratap Kumar


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