Risk management plan
Risk management
A risk is any uncertain event or condition that might affect your project. There are no
guarantees on any project. Even the simplest activity can turn into unexpected
problems.
A risk can be an event (like a snowstorm) or it can be a condition (lika an important part
being unavailable). Eitherw ay, it’s something that may or may not happen… but i fit
does, then it will force you to change the way you and your team work on the project.
It’s like the lottery.
Risk identification
Identify the sources of risk by category :
- Technical
- Cost
- Schedule
- Client
- Contractual
- Weather
- Financial
- Political
- Environmental
- People
External regulator environment= the promision you need from the city to do an event.
Risk breakdown structure (RBS)
Organize the risks, starting from the work breakdown structure (WBS)
,WBS:
1. Define project goal
2. Identify major deliverables
3. Breaj deliverables into smaller tasks
4. Identify risks for each task
5. Asses probalility and impact
6. Define mitigation action
7. Assign Responsibilities
8. Monitor and update
Risk evaluation
Evaluate each risk based on the
probability that i twill occur and the
potential loss associated with it.
High-impact risk: vb. project cot will
rise by 5%
RPM= Risk priority
number
How do you get
this number?
1. The
change
that it will
happen
2. If it
happens
what is the
severity or the negative impact
, 3 risks of a birthday party for your mother :
1. Nobody shows up -> 1x 3= 3
2. Wrong present -> 1x2=2
3. Bakkery is too late with the cake ->2x3=6
The third one is the highest risk what will your plan be?
→Make pancakes
Wrong present. How to avoid?
→Make a wishlist
Impact
→organisator
→Repubtor
Ga naar site FAVV, What’s happening to day?
Babyfood: Danone, Nestle
There is curativ in them and it is bad for the baby so now people are buying other brands
because people don’t trust them anymore so they need to get the convidence of the
people back. How will they do it.
- Communication
They need to be transparant
LOT <-> the batch number so they can take it out of the stores
- New message
- External experts
Someone form the outside has to say that it is good
If something like his happens it usually is much safer after because they took on the
problem but they lost the trust of their buyers.
Risk mitigation plan (before you start)
Once a risk has been identified, you adapt a risk mitigation plan :
- Risk avoidance (RA) : alternative strategy, higher responsibility, of success, often
higher costs
- Risk sharing (RS) : Find a partner to share responsibility, Vb : local partner in an
international project.
- Risk reduction (RR) : invest to reduce the risk, Vb : safety equipment
- Risk transfer (RT) : Vb : take an insrance, outsource task
, Contingency plan (if it occurs)
An alternative method for accomplishing a projet goal when a risk has been identified
and initially accepted
- Plan B-C-D-… ?
- Contingency funds – contingency budget
- Danger : easier to use contingency budget rather than finding less costly
solution
- +/- 5-10%
Project risk by phases
Project risk is dealt with in different ways depending on the phase of the project.
Project risk: Initiation phase
Risks are associated with unknown things. In the beginning of the project alot of thing
are unknown, but the risk must be considered in the initiation phase and weighted
against the potential benefit if the project’s success in order to decide if the project
should be chosen.
A good way of managing is beginning with making a list of al the risks. (Good practise is
in the planning phase)
WBS → list of activities →team + experts give it a number and only make a plan for the
higher numbers.
Risk management
A risk is any uncertain event or condition that might affect your project. There are no
guarantees on any project. Even the simplest activity can turn into unexpected
problems.
A risk can be an event (like a snowstorm) or it can be a condition (lika an important part
being unavailable). Eitherw ay, it’s something that may or may not happen… but i fit
does, then it will force you to change the way you and your team work on the project.
It’s like the lottery.
Risk identification
Identify the sources of risk by category :
- Technical
- Cost
- Schedule
- Client
- Contractual
- Weather
- Financial
- Political
- Environmental
- People
External regulator environment= the promision you need from the city to do an event.
Risk breakdown structure (RBS)
Organize the risks, starting from the work breakdown structure (WBS)
,WBS:
1. Define project goal
2. Identify major deliverables
3. Breaj deliverables into smaller tasks
4. Identify risks for each task
5. Asses probalility and impact
6. Define mitigation action
7. Assign Responsibilities
8. Monitor and update
Risk evaluation
Evaluate each risk based on the
probability that i twill occur and the
potential loss associated with it.
High-impact risk: vb. project cot will
rise by 5%
RPM= Risk priority
number
How do you get
this number?
1. The
change
that it will
happen
2. If it
happens
what is the
severity or the negative impact
, 3 risks of a birthday party for your mother :
1. Nobody shows up -> 1x 3= 3
2. Wrong present -> 1x2=2
3. Bakkery is too late with the cake ->2x3=6
The third one is the highest risk what will your plan be?
→Make pancakes
Wrong present. How to avoid?
→Make a wishlist
Impact
→organisator
→Repubtor
Ga naar site FAVV, What’s happening to day?
Babyfood: Danone, Nestle
There is curativ in them and it is bad for the baby so now people are buying other brands
because people don’t trust them anymore so they need to get the convidence of the
people back. How will they do it.
- Communication
They need to be transparant
LOT <-> the batch number so they can take it out of the stores
- New message
- External experts
Someone form the outside has to say that it is good
If something like his happens it usually is much safer after because they took on the
problem but they lost the trust of their buyers.
Risk mitigation plan (before you start)
Once a risk has been identified, you adapt a risk mitigation plan :
- Risk avoidance (RA) : alternative strategy, higher responsibility, of success, often
higher costs
- Risk sharing (RS) : Find a partner to share responsibility, Vb : local partner in an
international project.
- Risk reduction (RR) : invest to reduce the risk, Vb : safety equipment
- Risk transfer (RT) : Vb : take an insrance, outsource task
, Contingency plan (if it occurs)
An alternative method for accomplishing a projet goal when a risk has been identified
and initially accepted
- Plan B-C-D-… ?
- Contingency funds – contingency budget
- Danger : easier to use contingency budget rather than finding less costly
solution
- +/- 5-10%
Project risk by phases
Project risk is dealt with in different ways depending on the phase of the project.
Project risk: Initiation phase
Risks are associated with unknown things. In the beginning of the project alot of thing
are unknown, but the risk must be considered in the initiation phase and weighted
against the potential benefit if the project’s success in order to decide if the project
should be chosen.
A good way of managing is beginning with making a list of al the risks. (Good practise is
in the planning phase)
WBS → list of activities →team + experts give it a number and only make a plan for the
higher numbers.
