This lesson focuses on identifying risk. Identifying risk creates the risk register. The risk register is a document which contains risks, triggers, probability, planned responses and risk owners. [toggle_content title="Transcript"] The next process in risk is identifying risk. Identifying risk is the process that creates the risk register. The inputs to this is risk management plan, cost management plan, schedule management plan, quality management plan, human resource management plan, scope baseline, activity cost estimates, activity durations estimates, stakeholder register, procurement documents, enterprise environmental factors, and organizational process assets. If you watched the previous videos, for each one of these knowledge areas, you will notice that as you develop each one of these knowledge areas, looking at risk for a lot of these, cost management plan you are looking at budget and how it can impacts the project for risk. Schedule management plan you are looking at the schedule time frame is happening and what risk can affect time. Quality management plan, how risk can have an impact on quality. Human resource plan, do you have all the staff you need? As you are going through the human resource plan. You are looking at risk. Same thing with scope baseline, if you remember your WBS, WBS dictionary and scope statement. Activity cost estimates how much things should cost and how much they will cost. So you are assessing it based on what's probable, what's most optimistic, what's probable and looking at from pessimistic. Activity duration estimates, same thing, you are trying to figure out how long things will take. Stakeholder register, you are going to engage your stakeholder and see if they have any inputs on risks. Procurement documents...there is a risk when you are contracting things out or buying material. Enterprise environmental factors those are to determine what organization process assets you might have, templates to figure out risks and the environment that you are dealing with risks. Tools that are used are documentation review. So you can go through documentation and see if you can identify risks. Information gathering techniques, you can use the Delphi technique, the which is an anonymous way of surveying people or people can survey anonymously and then you get all that information. You get suggestions on what risks can be. Checklist analysis...you can look at past projects and basically go through a check list like will this occur if we do this type of project? You can basically look at past performance and assess whether there is risk potential on your project. Diagram techniques...you are trying to diagram back to the reports of what risks could be. Remember the obvious which we just ran over. The SWOT analysis...you are looking at strengths, weaknesses, opportunities and threats of the project and expert judgement to be able to identify what risks can occur. The output is a risk register. This is a review document so as the project is going on you are constantly updating and trying to figure out if new risks are occurring or new risks could happen. It contains your risks, triggers, what happens to identify that there is risk could occur. Probability, is it a ten percent chance is it a fifty percent, ninety percent. Plan responses so if this risk...if this trigger happens, how we are going to respond to that risk and risk owners. Who is responsible if this risk trigger happens. What is the plan response and who is acting on it. Here is my example of a risk register, take a risk number so I just made them sequential. Identifier, so this risk register I said it earlier, I am going to dig a well. First risk, not finding water, trigger, no water at fifty feet. Probability, based on statistics, there is a thirty percent chance that this could happen. Cost impact... could cost me a whole day of digging out once bad then I have to fill the whole, I am going to say its a thousand dollars. Response, I am going to keep digging to a 100 feet. The owner, perhaps it's the guy who is drilling the hole so if he doesn't find water at fifty feet, his response is to dig to a hundred feet. The reserve, I am taking the cost impact multiplying by the probability, I am going to make this a $300 reserve for the project. [/toggle_content]
Project Management Professional (PMP) - PMI
Our online PMP training course educates on how to initiate, plan and manage a project, as well as the process behind analyzing risk, monitoring and controlling project contracts and how to develop schedules and budgets.