Project Risk Management includes the processes concerned with identifying, analyzing, and responding to project risk. It includes maximizing the results of positive events and minimizing the consequences of adverse events.
From A Guide to the Project Management Body of Knowledge, Project Management Institute.
Prepare the project base plan. This is usually in the form of a work breakdown structure (WBS) or equivalent activity network diagram.
For each activity consider what uncertainties can happen to affect the activity's cost or completion time.
Estimate probability and impact on the project for each uncertainty. You may want to prioritize uncertainties for first attention.
Brainstorm to develop candidate actions that, if implemented, will positively affect probability and/or impact of the uncertainty.
Estimate the adjustment to probability and/or impact on the uncertainty if candidate actions are implemented.
Estimate the cost of implementing candidate actions.
Prioritize the candidate actions based upon expected value cost improvement.
Implement those risk mitigation actions that are cost-risk-effective.
Monitor events and action implementations. Maintain the inventory record of risks and actions.
After completion, reassemble the project team and post-analyze the project.
PROAct™ process and software for project risk management.
Training and assistance by John Schuyler, CMA CMC PE PMP, Aurora & Denver, Colorado, USA
Risk and Decision Analysis in Projects, 2nd Edition book by John Schuyler, 2001, Project Management Institute
Copyright © 1999 by John R. Schuyler. All rights reserved.