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All you need is a spreadsheet with the following columns: # Risk description- a column for the description of the risk # Impact - rate each risk on a scale of 1 to 10 [1 = hardly at all, 10 = totally kill the project] how seriously will this risk impact the project # Probability - rate on a scale of 1 (low) to 10 (high) what are the chances of this risk actually happening # Risk Factor: Multiply column 2 (Impact) by column 3 (Probability) Now sort by column 4 (from highest to lowest) and you have your most serious risks on top. Pick the top few risks and track them: * Give each one an owner * Define a plan how to lower the risk * Define a backup plan Review this list weekly.
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Is FMEA the primary tool for Risk Assessment?
FMEA (Failure Mode and Effect Analysis) is not the primary tool for Risk Assessment. There are other tools as well.
How you can identified the risks at various stages of the project?
The "risks" shouldn't vary during a project or suddenly appear out of nowhere. By definition, any project is a risk. You take risks in order to generate profit. Your "risk" should be identified at the beginning of the project and hopefully it is a financial risk rather than say, a code or OSHA violation or substituting wood for steel... Financial risk is defined in your project pro forma. Job site risks that put people in danger are illegal and should be avoided. Risks taken to violate the code and fool construction inspectors are also ill-advised in that at any time during the construction process, you will be obliged to correct defects and illegal construction whether the inspector passed it or missed it.
Does qualitative skills include analytical tools such as statistics forecasting risk management and LEAN Six Sigma?
false
What are Enterprise Environmental Factors?
The enterprise environmental factors are related to the environment internal or external to the performing organizations and can potentially impact the project. They may originate from within the performing organization, from any external organization participating in the project, or from both. These factors may have positive or negative influence on the project, and some of these factors may give rise to constraints for the project.Organizational environmental factors include the following:Culture and structure1. These refer to the culture and type of structure of the performing organization.Processes and standards:1. The organization may have specific processes in place do certain things in certain ways.2. There may be government and industry standards to follow, such as legal requirements, product standards, and quality standards relevant to the project.3. Personnel administration information, such as guidelines for hiring, firing, and performance reviews.Infrastructure and resources:1. Facilities and equipment to do the project2. Project management information systems, such as software tools for scheduling tasks and meetings3. Human resources currently available in the organization, such as skills and expertise4. Commercial databases, such as standardized cost estimating data and risk databases5. Work authorization system of the organization, because the project needs to be authorized6. Communication channels and tools available in the organization, such as email systemsInternal and external conditions:1. Risk tolerances of the project stakeholders2. Marketplace conditions relevant to the project3. Political climateNote that the environmental factors can be internal to the performing organization, such as the organization's culture, or external to the organization, such as market conditions
What is the risk profile of infrastructure projects?
The crucial elements in the financing of infrastructure investment is first assessing the severity of each risk and then identifying the party in the best position to manage a risk. The three broad stages in an infrastructure project with different risk profiles and financing requirements may be identified as follows: Development risk: The initial very high-risk phase where only equity capital can be used for financing. Construction risk: The next high-risk phase where cost and time spillovers tend to distort the future revenue generation and profitability prospects of the project. The construction phase may be financed by a combination of equity and debt with guarantees. Operating risk: This risk emerges due to underestimation of operating costs and occasionally, an overestimation of the output from the proposed infrastructure facility. Since the pricing of infrastructure services is monitored closely by the government, the burden of underestimation of operating costs cannot be passed on entirely to the users. However, the operation phase is considered to be relatively low-risk and may be financed through bond issues. The operation phase may, in turn be divided into the introductory operation phase and project stabilization phase. During the introductory operating phase, the revenue stream is thin and operational bottlenecks hinder achievement of high-capacity utilization. It is only during the project stabilization stage that risks reduce considerably and revenues are more steady and predictable. Besides the above, there are other risks: Demand risk: This is a result of an overestimation of the demand and "willingness to pay" for the proposed infrastructure facility. In several cases, like the toll road network in Mexico, the demand for the facility is high but inadequate willingness to pay on the part of the users has raised serious questions about the future of such projects. Financial risk: Of specific relevance to infrastructure projects are foreign exchange and interest rate risks. Given that infrastructure projects involve costs and revenues in the local currency, the foreign exchange exposure taken for such investments, especially in the nature of off-shore debt, can prove to be risky. The interest rate risk emanates from the dependence on long-term debt for meeting capital costs. Market risk: This is important when consumers can choose alternative services such as with toll roads, railways and even ports. Occasionally, the Government absorbs this risk explicitly or by default. In a Mexico toll road, the Government awarded the concession guaranteeing a minimum amount of traffic. If this could not be achieved, then the concession period would be extended. It is difficult to hedge against market risk. However, when there is a single buyer for the output, the market risk is taken by the purchaser. Political risk: Inadequate clarity in Government policies and selection procedures has made political risk the fulcrum of infrastructure development. With an increase in the clarity in and conviction behind government policies, the extent of political risk is expected to decrease sharply. This risk profile would be the guiding map in designing financing packages for infrastructure investments. Despite these features, projects are rarely staggered or executed in an incremental manner. This is primarily due to the nature of the transaction and negotiation costs involved, which rarely vary with the size of the project. For example, the efforts made by a private sponsor for negotiating a 500 MW power plant would be comparable to the efforts required for a 1,500 MW projects. This adds to the lumpiness of the investments.
Why should you use spiral model in software projects?
we use this model when user is not sure of project need.....when risk and cost evaluation is important for project .........and when project has complex requirement or new product line is introduce...
What has the author Louis Y Pouliquen written?
Louis Y. Pouliquen has written: 'Risk analysis in project appraisal' -- subject(s): Economic development projects, Evaluation, Finance, Risk
Difference between known risk and predictable risk?
Known Risks :- • That can be uncovered after careful evaluation of the project plan, the business, and technical environment in which the product is being developed • Example : Unrealistic delivery rate Predictable Risks :- • Extrapolated from past project experience • Example : Staff turnover
What is risk Evaluation?
measurement of the different types of risk,and how they are classified
What are the elements of a project's strategic framework?
A project's strategic framework typically includes the project's goals and objectives, the approach or methodology to achieve those goals, key performance indicators to measure progress, and a risk management plan to address potential challenges. It provides a roadmap for project planning, implementation, and evaluation.
A Risk to one is a Risk to All is based on?
what is not part of the evaluation process
What is the definition of a risk assessment?
Risk assessment is the systematic analysis and evaluation of risk associated with the activity
What are the advantages of project risk management?
reduce risk of accidents
What is risk in project managament?
Risk, in Project Management, is the likelihood of occurrence of an event usually with negative impact on the project.
Why is project risk management required?
Risk management - is the process of determining what physical dangers (if any) there would be to people working on the project. All construction work requires a risk assessment in order to plan safe working procedures. It sets out methods of working safely with such things as chemicals, tools, construction materials etc - and what to do in the event of accidents.
When is risk highest in project management?
The risk is highest usually in the execution phase, risk is proportional to the timeline of the project.
What is a risk trigger?
In Project Management, a risk trigger is an identified measure or indicator that signals to the project that the risk event may occur.
