This video describes how to set up risks for your project using common categories, so you can take an overall view of your project risks and address them more efficiently.
- Risks are like having a large cart of groceries. You need to sort things out, place items in separate bags for the freezer, fridge and pantry so you're organized when you get home. The same pertains to risks on your project. How will you ensure your risks are well-organized so you can manage them? Categorizing risks for your project is a great way to ensure you're well-organized. Let me share some typical ways to categorize risks and some tips for using those categories wisely.
First, try to identify any risks that have common causes. For example, one common area for risks might be not having enough people, or you lack people with the relevant skills. You could have a substantial list of risks, but many can be managed collectively by tying them back to a category of people and skills. A second way to categorize risk is by business area, such as external market risks or business strategy changes. This can be very helpful when you're dealing with your client and the risks they bring to the project.
Taking this approach can enhance the perception that you're managing the project with your client and their needs in mind. It can also help engage your client to ensure you manage their risks appropriately. A third way to categorize risks is by technical area. These might include design and development challenges, testing and maintenance risks and uncertainty with technical vendors. Fourth, you can utilize an integration risk category. Integration risks surface when you're working on your project while there are other things happening in your organization.
This activity can cause priority problems or conflicts with other project deliverables. If you have nine projects targeting a single business area, this might signal a need to address integration risks, as solutions may need to be coordinated or even merged together. Although these are common risk categories, you may find other categories that are more useful on the specific projects you manage. No matter which categories you use, here are a few tips for using those categories to manage risks.
Revise your categories as necessary. As the project progresses, you may learn more about the risks that are substantial. Therefore, more relevant categories may surface. My final tip is to always keep your list of categories short and simple. Try to avoid a heap of categories for you and your team to sort out. Package the risks so they're relevant for your project team and other stakeholders. For help with this, I've included a risk identification checklist in the exercise files for the course to give you an example.
Using well-crafted risk categories can help you manage your project risks more easily. But it also helps your stakeholders see the risks for what they are, and helps you work with your risks more effectively, kind of like ensuring you don't leave frozen items on your kitchen counter when you get home from the store.
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Explore why dealing with risks needs to be part of the everyday process used to manage a project.
- Learn to outline the most common, pragmatic approaches to identifying risks specific to a project.
- Recall methods for qualifying and quantifying your risks to determine specific risks and manage their costs.
- Examine the primary considerations for a project risk plan and what components should be included in every plan.
- Assess techniques that help you identify the overall risk a project presents to your business.
- Examine several risk analysis and filtering examples that help ensure you've addressed individual risks properly on your project.