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Identify Risks Inputs, Tools and Techniques, and Outputs
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Like the previous risk management process, this one has many inputs (11 according to PMI) Also, there are many (PMI shows seven) tools and techniques that can be used to help you and the project team identify risk, but still just a single output (in this case, the risk register) To get a better idea of all the areas that may cause risk on a project, look back at the risk management data flow diagram shown in Figure 11-1
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Inputs Remember, when it comes to risk identification, you should look all around for anything that may jump up and impact (hurt or help) the project Here s a sample list of inputs that should be considered, at a minimum:
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Risk management plan This includes all the key areas of the plan, such as scope, schedule, communications plans, and so on Activity cost estimates Remember, cost is one of the key components of the project constraints and is often a major risk on projects (for example, budget cuts, overspending, and rising cost of materials) Activity duration estimating This is another big risk on a project Things seem to take longer than expected For example, the Sydney Opera House ran nine years over the approved schedule Scope baseline The assumptions found in the scope statement that are approved as the baseline (including the WBS) are great sources of input to help identify risk
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The best time to start the risk identification process is during the creation of the WBS (see 5) By doing these activities together, you may be able to combine two processes into one at the very start of the project
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Stakeholder register Information about the stakeholders, their risk tolerances and thresholds, their expectations, their level of support, and even their attitude toward the project can help you identify stakeholder risks Cost management plan Understanding the overall budget and level of priority the project has at the upper management level will help you identify risks in this area Look for indicators such as delays in order processing and delayed accounts payable, which can mean no management approval or financial issues may exist in the company or department Schedule management plan Another great place to look for potential risks Remember that the schedule is a key component of the project constraints and is often the highest source of conflict on the project Quality management plan Quality requirements pose threats Therefore, this is a great place to look for potential risks on your project
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11: Project Risk Management
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Tools and Techniques Here are a few of the tools and techniques used or places to look in the Identify Risks process:
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Checklist analysis Using historical information, the checklist provides a simple way to capture the risks for review and analysis to make sure the risks are identified Assumptions analysis The assumptions should be documented and reviewed to see if they are valid They are used for the purpose of identifying future risks Diagramming techniques Various diagrams can be used for risk identification: cause and effect diagrams (also known as Ishikawa or fishbone diagrams), system or process flow charts (show interrelationships), influence diagrams (graphical representations of situations or time-ordered events on the project), and mind mapping[5] Expert judgment Direct and effective use of subject matter experts is one of the more effective ways to identify risks Information gathering You have a multitude of ways to gather information about your project Some of these have already been discussed, but for clarification I list a few of them here:
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Brainstorming
One idea prompts another (synergy)
Interviewing Also may be called expert interviewing on the exam Delphi technique This technique provides a way to reach a consensus of experts Experts participate anonymously through the use of a questionnaire or survey A facilitator conducts an iterative process to narrow the field of possibilities until a consensus is drawn based on the results from the participating experts
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