Identifying risk
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= Input = | = Input = | ||
| − | + | When talking input for risk identification we are talking about all documents and knowledge developed beforehand, that enables us to identify risk. These are output from task/process carried out prior to the risk identification, which lay the groundwork to the actual risk identification. | |
| + | |||
| + | Some examples of input needed are: | ||
| + | |||
| + | • Project management plan | ||
| + | • Project Documents | ||
| + | • Agreements | ||
| + | • Procurement documentation | ||
| + | • Enterprise environmental factors | ||
| + | • Organisational process assets | ||
| + | |||
== Project management plan == | == Project management plan == | ||
| + | The project management plan include knowledge from underlining components. These components include: | ||
| + | |||
| + | • Requirements management plan | ||
| + | • Schedule management plan | ||
| + | • Cost management plan | ||
| + | • Quality Management plan | ||
| + | • Resource management plan | ||
| + | • Risk management plan | ||
| + | • Scope baseline | ||
| + | • Schedule baseline | ||
| + | • Cost baseline | ||
| + | |||
| + | Other relevant Management plans, Baselines, or relevant documents can be included in the project management plan. | ||
| + | |||
== Project Documents == | == Project Documents == | ||
| + | |||
| + | Some project documents can be included as input in the risk identification. Examples of these are: | ||
| + | |||
| + | • Assumption log | ||
| + | • Cost estimates | ||
| + | • Duration estimates | ||
| + | • Issue log | ||
| + | • Lessons learned register | ||
| + | • Requirements documentation. | ||
| + | • Resource requirements | ||
| + | • Stakeholder register | ||
| + | |||
== Agreements == | == Agreements == | ||
| + | There might be some agreement/contract with some external partner/stakeholder. The information in such an agreement may present both risk and opportunities for the project. Information in the agreement may include, but are not limited to, milestones dates, acceptance criteria, awards and penalties. | ||
| + | |||
== Procurement documentation == | == Procurement documentation == | ||
| + | |||
| + | Procuring goods and services from external sources may increase or decrease the risks for the project, as well as introduce new risks. The most up to date procurement documentation should be reviewed for potential risks. | ||
| + | |||
== Enterprise environmental factors == | == Enterprise environmental factors == | ||
| + | |||
| + | |||
== Organisational process assets == | == Organisational process assets == | ||
= Tools = | = Tools = | ||
| + | |||
| + | From the input generated and gathered, the management team have a variety of tools in the toolbox, that will help them identify the risks. | ||
| + | |||
| + | Examples of such tools are: | ||
| + | • Expert judgment | ||
| + | • Data gathering | ||
| + | o Brainstorming | ||
| + | o Checklists | ||
| + | o Interviews | ||
| + | • Data analysis | ||
| + | o Root cause analysis | ||
| + | o Assumption and constraint analysis | ||
| + | o SWOT analysis | ||
| + | o Document analysis | ||
| + | • Interpersonal and team skills | ||
| + | • Prompt lists | ||
| + | • Meetings | ||
| + | |||
| + | == Expert judgement == | ||
| + | |||
| + | The project manager should identify individuals or groups that could act as expert on projects risk and the source of these risks. The expert should both consider specific risk and overall project risks. | ||
| + | |||
| + | The experts can be people with experience in a specific area relevant to the project. Or they could be people with some form of specialized knowledge that relate to the project. | ||
== Data gathering == | == Data gathering == | ||
| + | |||
| + | There are multiple techniques to gather data related to risk. Here there are highlighted some, which are widely used | ||
=== Brainstorming === | === Brainstorming === | ||
| + | |||
| + | In a brainstorm the goal is generate an overview of potential risk for the project. The brainstorm is carried out by the project team. However, have experts been gathered they should also participate in the brainstorm. | ||
| + | |||
| + | In a brainstorm there is a risk that the ideas generated are not described in full. This is something that the facilitator should have in mind, so that all risk is fully described and usable. | ||
=== Checklist === | === Checklist === | ||
| + | |||
| + | Information and knowledge gather from similar projects, experience and other sources can be compiled into a checklist of risk. The checklist is a list of potential risk which have been seen before. This list can then be updated throughout the project. | ||
| + | The checklist is a good way for a company to transfer knowledge and learnings from project to project. | ||
| + | However, this should not be seen as a reason to not carrier out a risk identification. Other risk should also be explored. | ||
=== Interviews === | === Interviews === | ||
| + | |||
| + | Interview is another method of identifying project risks. The interviews can be carried out with any person or group that have relevant for the project (project participants, stakeholders, experts, ect.). | ||
| + | The danger with interviews is that the participant withhold information out fear, shame, or what have you. Therefore, It is essential for the interviews that they are carried out in trusting and open environment to insure the right information is extracted. | ||
== Data analysis == | == Data analysis == | ||
Revision as of 17:11, 27 February 2021
The process of identifying risk in project management can be summarised as both identifying individual risk for the project and sources of overall risk to the project. Thereafter documenting their characteristics. When the risk has been identified, this allows the project team to tackle the challenges arising with these risks. Identifying risks is a process that is performed throughout the project’s lifetime. When identifying risk, the step that you go through is create input, applying tools and techniques, and finally getting output. Creating input is essential for management to identifying the risk. Examples of what the input consist of: project management plan, project documents (Assumption log, cost estimates, issue log, etc), enterprise environmental factors, and much more. After creating input, certain tools can be used to identifying the risks. An in-depth look into them will come later, but some of them are: Expert judgement, data gathering, data analysis. The last part is the output. The output is 3 folded; 1. Risk register. 2. Risk report. 3. Project documents updates.
The 3 parts of identifying risks (input, tools & output) will be descried in greater details.
Contents |
Big idea
Input
When talking input for risk identification we are talking about all documents and knowledge developed beforehand, that enables us to identify risk. These are output from task/process carried out prior to the risk identification, which lay the groundwork to the actual risk identification.
Some examples of input needed are:
• Project management plan • Project Documents • Agreements • Procurement documentation • Enterprise environmental factors • Organisational process assets
Project management plan
The project management plan include knowledge from underlining components. These components include:
• Requirements management plan • Schedule management plan • Cost management plan • Quality Management plan • Resource management plan • Risk management plan • Scope baseline • Schedule baseline • Cost baseline
Other relevant Management plans, Baselines, or relevant documents can be included in the project management plan.
Project Documents
Some project documents can be included as input in the risk identification. Examples of these are:
• Assumption log • Cost estimates • Duration estimates • Issue log • Lessons learned register • Requirements documentation. • Resource requirements • Stakeholder register
Agreements
There might be some agreement/contract with some external partner/stakeholder. The information in such an agreement may present both risk and opportunities for the project. Information in the agreement may include, but are not limited to, milestones dates, acceptance criteria, awards and penalties.
Procurement documentation
Procuring goods and services from external sources may increase or decrease the risks for the project, as well as introduce new risks. The most up to date procurement documentation should be reviewed for potential risks.
Enterprise environmental factors
Organisational process assets
Tools
From the input generated and gathered, the management team have a variety of tools in the toolbox, that will help them identify the risks.
Examples of such tools are: • Expert judgment • Data gathering o Brainstorming o Checklists o Interviews • Data analysis o Root cause analysis o Assumption and constraint analysis o SWOT analysis o Document analysis • Interpersonal and team skills • Prompt lists • Meetings
Expert judgement
The project manager should identify individuals or groups that could act as expert on projects risk and the source of these risks. The expert should both consider specific risk and overall project risks.
The experts can be people with experience in a specific area relevant to the project. Or they could be people with some form of specialized knowledge that relate to the project.
Data gathering
There are multiple techniques to gather data related to risk. Here there are highlighted some, which are widely used
Brainstorming
In a brainstorm the goal is generate an overview of potential risk for the project. The brainstorm is carried out by the project team. However, have experts been gathered they should also participate in the brainstorm.
In a brainstorm there is a risk that the ideas generated are not described in full. This is something that the facilitator should have in mind, so that all risk is fully described and usable.
Checklist
Information and knowledge gather from similar projects, experience and other sources can be compiled into a checklist of risk. The checklist is a list of potential risk which have been seen before. This list can then be updated throughout the project. The checklist is a good way for a company to transfer knowledge and learnings from project to project. However, this should not be seen as a reason to not carrier out a risk identification. Other risk should also be explored.
Interviews
Interview is another method of identifying project risks. The interviews can be carried out with any person or group that have relevant for the project (project participants, stakeholders, experts, ect.). The danger with interviews is that the participant withhold information out fear, shame, or what have you. Therefore, It is essential for the interviews that they are carried out in trusting and open environment to insure the right information is extracted.
Data analysis
Root cause analysis
Assumption and constraint analysis
SWOT analysis
Document analysis
Output
Limitations
Annotated bibliography
Key references: • Project Management: A guide to the Project Management Body of Knowledge (PMBOK guide), 6th Edition (2017)
