2. Risk Management Introduction
Project Risk - Definitions
Project risk is a uncertain event, that, if it occurs, has a negative effect on a
project objective.
Risk probability is the likelihood that a risk will occur.
Risk consequences (impact) is the effect on project objectives if the risk event
occurs.
Risk trigger is an indication that a risk has occurred or is about to occur.
Risk management is the process of identifying, evaluating and responding to
project risk.
The goal of risk management is to minimize the probability and impact pf
projects risks to project objectives.
3. Risk Management Introduction
The Goal of Risk Management
Risk management is pro-active, i.e. it is an advanced preparation for possible
adverse future events, rather than responding as they happen.
Forms and Opportunity and Risk Management
Reactive: Incurred losses (target deviations) are identified, analyzed and as
mush as possible are corrected. (e.g insurances)
Active : Early, systematically identification, evaluation and controlling of risk
carrying activities of a stock corporation . (Change to act with efficient measures
to improve or avoid highly expected problem situation)
4. Risk Management - Definition
Definition: A (project) risk is a pottential loss of
a aimed/ defined (project) target.
Unacceptable risk:
Identified risks which demonstrate a " danger of product" have to be classified as red
independent from probability evaluation. if no alternative of the elimination of the risk
can be found, the project has to be canceled.
Classification:
A risk (potential loss) is classified by a combination of the kind or category (optional), the
probability (OCCURENCE) and its consequence (SEVERITY/ IMPACT)
5. Risk Management – Objectives/ Results
Objectives of project Risk Management:
Early prediction and anticipation of risks
Early implementation of preventive action
Systematic controlling of risks
Confidence in planning (functionality-time-cost-quality)
Adequate involvement of the management
Results:
Satisfied customers
Decrease of nonconformance costs
improved int/ext communication about project risk
Fulfillment of business objectives
Securing of company profit in the future
6. Risk Management Introduction
Integrating Risk With Other Project Management Functions
PROJECT
MANAGEMENT
INTEGRATION
PROJECT HUMAN
SCOPE Feasibility Life Cycle RESOURCES
Availibility
Productivity
PROJECT RISK
Milestones
Cost TIME
QUALITY Requirements Objectives (Project
Schedule)
COST
