Lecture for Project Risk Management

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Risk Assessment Risk Assessment Functions | Risk Assessment Process | The Probability-Impact Matrix | Risk Categorization | Risk Owners |Completing the Assessment | Summary This week, we will look at the concept of risk assessment. Risk assessment is the process of analyzing project risks to quantify probabilities and to measure their impact on the project. Once we have measured risks, the process of assigning them to risk owners and preparing a plan on how to deal with them can begin. Our goal here is to be able to pass on to the options and actions step. Details will be needed about the risks and their possible impact on the project so that actions can be prepared and the stakeholders can be assured that risks have been analyzed. |…show more content…
Sometimes, there needs to be a decision between risks based on their rating the same single-impact risks because they are deemed to be equally important. The rule of thumb to use is that multiple-impact risks are more important than single-impact risks, and if they are both multiple-impact, the one with the higher second impact will be deemed more important. | | | |Risk Categorization | | Once the P-I matrix is complete, the risks will then need to be categorized. Here is where the risk breakdown structure (RBS) comes into focus. To review, in the building of the RBS, risks were assigned to an RBS element. For instance, a facilities risk is associated with the management RBS element, or a data risk with a technical content RBS element. Initially, the risks were associated in the identification step. Now, we need to verify, based on the P-I matrix, that they still are associated with the same elements. Sometimes the associated element may change because the P-I matrix allocation gives you a better understanding of the risk. Often they do not, and it is important not to overanalyze the association. When this task is complete, the risks should be mapped to the work breakdown structure (WBS) tasks so that we can see

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