Lecture for Project Risk Management
Risk Assessment Functions | Risk Assessment Process | The Probability-Impact Matrix | Risk Categorization | Risk Owners |Completing the Assessment | Summary
This week, we will look at the concept of risk assessment. Risk assessment is the process of analyzing project risks to quantify probabilities and to measure their impact on the project. Once we have measured risks, the process of assigning them to risk owners and preparing a plan on how to deal with them can begin. Our goal here is to be able to pass on to the options and actions step. Details will be needed about the risks and their possible impact on the project so that actions can be prepared and the stakeholders can be assured that risks have been analyzed.
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|Risk Assessment Functions | |
Risk assessment involves two basic functions: 1. Determining the probability of the risk occurring (looking at how likely it is that the risk will actually happen) and 2. Determining the impact (if the risk occurs, determining what effect it will have on the project).
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|Risk Assessment Process | |
The assessment step is a continuation of the risk workshop that we began in the identification step. During the workshop, you will remember that we developed a risk management plan, and part of that plan was the scales of probability and impact. In doing the assessment, we will be using that agreed-upon scale to measure the risks. The first step in the process is to look at the probability of the risk occurring. There are five levels to