This video provides hints and tips for constructing your risk records in a concise and useful manner to make them easier to use during your ongoing project management.
- Risk management plans fill up lots of waste baskets, accompanied by frustrated project managers screaming things like, "This risk plan is useless." The difference between risk plans that work and those that do not usually comes down to one simple element: the way risks are written. Let me share a story where risk records were written inadequately. An airport identifies a risk that their fuel trucks may be unable to make it to refuel airplanes in a timely manner.
This'll cause flight delays. As a response, the project manager assumes the risk involves the fuel trucks having a mechanical failure. He decides to have more fuel trucks available so they'll always have a truck ready to refuel the aircraft. Sounds like a reasonable risk mitigation strategy. However, during the next month the fuel truck drivers go on strike. They could have all the fuel trucks in the world, and none of them would show up.
What went wrong here? The project team only considered one cause for the risk occurring. So you don't end up like our unfortunate airport manager, let's take a look at the formula for writing effective risk records. A properly structured risk record is as easy as pie. The probability of impact as the result of an event. Add the cause of the event and you have a useful risk record. Back to our airport example. An appropriate risk record would be there is an x% chance that the fuel truck drivers will go on strike, causing the fuel trucks and aircraft departures to be delayed.
This will increase costs by $y per flight. It's notable here that you may need more than one risk record to cover other items, flat tires, for instance, that may delay fuel truck arrivals. This could be covered with additional trucks. Doing good risk identification and analysis is important, but it all has to go somewhere. That place would be your risk register. First, your risk register captures the risks that have been identified in an overall assessment of project risk.
Your project level risk comes from looking at your risk overall, and total potential impact to your project. Many high-impact risks that would be expensive to avoid would lead to a high risk project. Few risks overall or few risks that have high cost response plans likely means your project is low risk. Between these two end points you probably have a medium risk project. Second, include your plans for treating each risk, as well as the cost of any treatment strategy.
You might do this for medium and high risks only. Third, identify the owner of each risk and how the risk is tied to tasks in your project schedule. Finally, keep it current. Make sure the risk register is updated after every status meeting. Follow these activities and it will bring your risk management to life and keep your project healthy. Oh, and it'll also reduce your need to empty your waste basket.
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.