BASIC PRESENTATION

PROJECT RISK PLAN

GROUP 4

Index

1. WHAT IS A RISK

2. WHY A RISK PLAN IS NEEDED

3. IDENTIFICATION OF PROJECT RISKS

4. EVALUATION OF PROBABILITIES AND IMPACT OF RISKS

5. RISK MATRIX NALYSIS

6. STRATEGIES TO MANAGE RISKS

WHAT IS RISK

• Risk is the main cause of uncertainy in any organization
• Project risk is defined by Project Management Institute as " an uncertain event or condition that, if it occurs , has a positive or negative effect on a project's objectives that include scope, schedule, cost and quality "

( Project Management Institute, 2013)

WHY RISK PLAN IS NEEDED

A risk management plan is a component of the project program or portfolio management plan that describes how risk management activities will be structured and proformed .

A risk management plan can

• helps companies identfy risks
• helps to eliminate unrecognized risks that could escalate an emergency
• allows them to reflect on the events and assumptions made that could impcat the project
• allows them to put in place measures to limit the most significant risks. we will be able to reduce their probability of occurrence, or avoid them completely in some cases

conducting a project risk analysis allowsAnticipate unforeseen events thanks to a better knowledge of the project Reduce the level of risk by making sound decisions . All this will lead to a more reliable project !

IDENTIFICATION OF PROJECT RISK

Risk identification refers to the process of identifying risks that arise in project management . it is observed that sereval busnesses modify the risk identification framework as per their conveniece .A few metheds of identifiying risks, accourding risks , accourding to PMIthere is five tools use ;

nassumption analysis

Delphi technique

Tdocument review

Brainsto-rming

interviewing

EVALUATION OF PROBABILITIES AND IMPACT OF RISKS

Impact ; are often defined as the consequences, or effects of a risk event on the project objectives . these impacts can be beneficial or harmful to the objectives.

Probability:risk probability or likehood is the possibility of a risk event occurring . the likehood can be expressed in both a qualitative and quantitative wanner .

impact and probability are the two main components of risk analysis. looking at impact versus probability is common in order to categorize and prioritize risk as some risks may have a servere impact on project objectives but only happen on rare occasions , while other have a moderate impact but occur more frequently

Risk matrix analysis

The risk matrix is based on two intersecting factors ; the likelihood of the risk eventoccurring and the pontential impact the risk event will have on the business .in others words , its a tool that helps you visualize the probability versus the severity of a potential risk .

Impacts

Impact measurement

• THE COSTS
• MARGIN
• TRUNOVER
• THE IMAGE
• ENVIRONMENT
• HEALT SECURITY
• QUALIYT

RISK MATRIX EXAMPLE

WE ARE USING A 5X5 FIVE-POINT SCALE FOR THE IMPACT AND PROBABILITY IN THIS MATRIX EXAMPLE, BUT USE A SCALE SYSTEM THAT WORKS BEST FOR YOUR TEAM. FOR EXAMPLE YOU CAN USE A 3X3 MATRIX FOR LESS GRANULARITY.

MEASURE OF PROBABILITY

STRATEGIES TO MANAGE RISKS.

risk management strategy definition

A risk management strategy is a key part of the risk management lifecycle. after identifying risks and assessing the likehood of them happening as well as the impact they could have , you will need to decide how to treat them .the approche you decide to take is your risk management strategy . this is olso somitimes referred to as risk treatment .

THERE ARE FOUR MAIN RISK MANAGEMENT STRATEGIES ;

• Risk acceptance
• Risk transference
• Risk avoindance
• Risk reduction

conclusion

Risk is a natural part pf business . Having a risk managementg strategy can help you to protect your organisation from the detrimentel effects of risks occurring . while some risks are unavoidable, others can be mitigated with the aid of technology like autommation solutions

Thank you !