barcode reader sdk vb.net PART THREE Skills and Tools RISK PLANNING in Software

Generator QR Code in Software PART THREE Skills and Tools RISK PLANNING

PART THREE Skills and Tools RISK PLANNING
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Now we need to decide what we are going to do about each risk, and add our decision to the risk plan. These choices are not exclusive; that is, we can choose to take several of these actions in relation to any one risk. And we must choose at least one for each risk. Here are the choices:   Risk avoidance. We change the project plan to avoid the risk altogether. For example, we move the picnic to southern California because, after all, it never rains in southern California. Risk reduction. We reduce the likelihood that a risk event will happen by taking action before it does. For example, if we see that a vendor might deliver a key component late, we o er a bonus as an incentive for on-time delivery. Risk mitigation. We take action to reduce the consequence of a risk event in case it does happen. For example, if we see that a key sta person might be pulled away to another, higher-pro le project, we have that sta member write a detailed plan with instructions. That way, if the sta member has to go, we can continue the work, though perhaps at a slower pace. Risk transference. This is more of an administrative solution than a real help to the project. Buying insurance is one kind of risk transference. Or we might include a clause in an equipment purchase that, if the project does not go through, we can return the equipment, so that the cost is not the project s responsibility. But, for the most part, if we own the project and our focus is on making it succeed, we do not try to transfer risk to others. Risk acceptance. To accept a risk means to realize that it might happen, and to choose not to take any action about it before it does. This is especially appropriate for items with a low likelihood. Not taking action, however, is di erent from doing nothing. When we accept a risk, we keep it in the risk plan, and track the project, so we are ready to handle the risk even if it happens.
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When we have created a risk assessment and de ned the actions we will take in relation to each risk, we have our initial risk plan. If we take actions to avoid risk, reduce the likelihood of a risk event, or mitigate the consequences of a risk event, we should update the likelihood, consequence, and risk factor for that item. This document is reviewed and approved at the end of the design stage.
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CHAPTER 11 Managing Risk and Change
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Low-cost Risk Mitigation
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Good communication, building teamwork and commitment, is low-cost risk mitigation. Suppose we know a vendor might deliver a product late, but we do not have the authority to create a bonus or a penalty as an incentive. We can simply talk to the vendor, explain the time-critical nature of the project, and ask the representative to do his or her best. We can ask probing questions to see if the vendor has the authority to make sure the order gets priority. Explaining our situation and building cooperation is an excellent way to reduce project risk.
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Contingency planning
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Contingency planning is one type of risk mitigation. A contingency plan is a statement: If this risk event happens, here is what we will do. The contingency plan can be short and simple, or it can be very detailed. An example of a detailed plan would be a full WBS for handling the risk event, with a budget. If the risk event occurs, we insert the WBS into the main plan. Contingency plans are useful for individual risk events. We can create one for each risk in our plan, and we should create one for any risk that is likely and that will be di cult to manage if it happens. Note that a contingency plan for a single risk is very di erent from our contingencies for risk, which are allocations of time and money related to risk for the whole project.
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