Risk Management

Hi Friends,

Greetings !!

Today, we will understand the "Risk Management", typically, what is the Risk and how to deal with them opting a Response Strategy, in order to make our Project successful without affecting the planned Outcome or Deliverables in terms of T,Q,C,D i.e. Technical, Quality, Cost & Delivery of a Project.

Risk: 

So, the Risk is always considered if it is identified before the Occurrence of the Event, else becomes the News and considered as an Issue, if reported after it has occurred.

Risk Quantification & Prioritization:

A Risk can be quantified or the Impact of Risk can be evaluated as per below equation:

Risk can be assessed & quantified as per below Probability & Damage (Consequence) Table:

Below is the Risk Matrix based on "What will Happen & What would be its Impact"

Risk Impact:

A Risk can Impact following Major Deliverables of a Project and the amount of Impact is based on the product of Probability of Occurrence & the Damage if it occurs.

Risk Identification Techniques:

Risk Response Strategies:

Below are the Strategies defined to "Overcome or to Respond" the Risks (Negative Risks) in a Project:

Action Plan Development:

So, after deciding the Response Strategy from above, Action Plan is made with defined Responsibilities along with Target Dates and those actions are further monitored for their completion & effectiveness.

For managing the Positive Risks, there are some other defined Strategies adopted, achieve the maximum benefits of these risks e.g. Exploit, Enhance, Share & Accept. All these details would be shared in the upcoming articles.

Note: There is a Standard template also attached herewith which can be used & implemented in your Organization in Managing the Risks effectively. If you need it in editable form of Excel, Please do contact me through email.

Risk Assessment Template

  

Thank You 🙏

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