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Figure 11-2 Sample Risk Breakdown Structure Categories
PMP Certification: A Beginner s Guide
Some great templates are available to assist you in creating your risk management plan See Figure 11-4 at the end of this chapter for a sample template from CVR/IT Consulting LLC
2 Identify Risks Process
In this process the work of the team (all stakeholders) comes together; they should plan to put their heads together and brainstorm about what can go wrong and which risks may affect the project This session (not a meeting) should be planned well, facilitated if possible by someone who can help capture the many potential risks that are identified You should allow an adequate amount of time; sometimes these sessions go for hours Also, as mentioned before, this process should begin early (at the onset of the project life cycle) and should be monitored throughout the entire project The reason I say the risk identification process session should be facilitated is because ground rules must be clear (no such thing as a bad idea or input, everyone has a voice, and so on) The intent is to think outside the box to collect all possible risks but to not evaluate any of them at this point This process should be iterative, meaning there should be synergy where one idea leads to another Don t worry about the prioritization or overall chance or impact of the risks; this will all come out during the analysis process Analysis (both qualitative and quantitative) will separate out those risks that are high priority, medium priority, and low priority (based on probability and impact) Therefore, you should collect a long list to begin with and narrow it down from there
If you see a question on the PMP exam that asks who should be involved in the Identify Risks process, the answer should be all stakeholders, including the customer, sponsor, project team, and so on
How Do We Identify Risk
The operative word is we in this question And the answer is to use whatever tools and techniques you and the team can come up with that help to identify risks on your project The best way I have found to identify risk is through the facilitated brainstorming session mentioned previously, but I especially like the interview process as well There are times when people are not open and candid in a workgroup session; therefore, oneon-one interviews tend to work really well in this situation If possible, conduct the interview in a quiet, uninterrupted location and take time to put the person at ease When people feel comfortable and in a no-penalty environment, they are more likely to open
11: Project Risk Management
up with existing issues, concerns, and problems that you need to be aware of during the risk identification process I have found that a quiet lunch or off-site meeting at a neutral location will help the person feel more at ease and willing to share any perceived and potential risks Another way to identify risk is to do your homework by reviewing all project-related documentation The first thing you should do when assigned to a new or existing project is to review all the documentation available (including the documentation for similar previous projects) Keep in mind that PMI is big on lessons learned (and so am I)
Types of Risks
According to PMI, risks fall into one of two primary classifications:
Business risks These are usually risks that result in a gain or loss to the business Pure (insurable) risks These risks only apply to a loss (theft, fire, personal injury, and so on)
There are times when risks have a ripple effect; they ricochet around and have a residual impact on the project The project team should be aware of these types of risks and plan accordingly Here are some examples:
Residual risks Risks that remain even after the original risk has been responded to (for example, water damage that causes mildew or rust) Secondary risks Risks that have side effects or cause other risks to occur (for example, the risk of electrical shock due to a leaky roof) Risk interaction Risks that don t play well together For example, the interaction of two chemicals to clean a storage tank can cause toxic fumes, even resulting in death Now there is a risk event you don t want to have to deal with
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