The document discusses the importance of properly identifying risks, their potential causes, and potential effects or consequences when performing risk analysis. It provides an example of a risk related to delays in obtaining a building permit, with the potential cause being late submission of permit documentation and the potential effect being project delays and contractor claims. The document also discusses how a single risk may have multiple causes or effects, and that mitigation measures may address either causes or effects but not necessarily both. It prompts the reader to identify three risks related to a familiar project, along with their causes, effects, and potential mitigation measures to address causes or effects.

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© M.A. Buijnsters Exercise C - cause-risk-effect PM Day Kiev EN v1.3 MBu.doc Page 1 / 2
Exercise C: Risk*
identification (15 min)
For proper risk identification it is important to differentiate between the risk, the potential risk cause(s) and potential
effect(s)/consequence(s) of such risk. Only then one is able to address the root cause and the real effects/consequences of the risk and
able to apply appropriate mitigating measures (if necessary).
Proper risk identification and analysis require proper description of the risk cause(s), the risk itself and the effect(s)/consequence(s) of the
risk, along the following lines:
Because…. [CAUSES], it may happen that….[RISK],
which as a result may…. [EFFECT/CONSEQUENCES]…
In other words: (potential) Cause(s) => (potential) Risk => (potential) Effect(s)/Consequence(s)
Example:
Because the relevant building permit request documentation was not forwarded on time, it may happen that we will have a
delay on the issue of the building permit, which as an effect/consequence may delay the start of the project (and as a
result have the contractor forward a claim for schedule delay).
As potential mitigating measure the following measures could be implemented:
• To reduced the probability of the cause : Implement day-to-day control on permit documentation preparation and application
• To reduce the impact of the effect : Contractor contract clause that <4 weeks delay due to permit delays is no ground for
delay claims (or maximize the delay claim for such for up to 4 weeks of permit delay)
Please note that a single risk may have more than one cause or effect/consequence and that mitigating measures of a specific risk may
not address all causes or effects/consequences simultaneously. And also note that one mitigating measure may influence more than
one risk.
Also give it at thought already what the residual risk will be when the mitigating measure is applied/effective and what kind of
probability and effect(s)/consequence(s) for this residual risk will remain. It may not be necessary to fully eliminate the cause or the
effect/consequence as that may make the mitigation measure too expensive related to the residual risk left.
Please fill out the table at the backside identifying 3 risks with their related causes, effects/consequences and also 3 potential
mitigating measures to address cause or effect/consequence for a project you are familiar with.
Note: You have about 15 min. to do this exercise, so try not to spend more then 5 min. per risk and related cause(s), effect(s) and mitigating measure(s)
(*) Risk is about uncertainty and involves both positive and negative events i.e. opportunities and risks

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