How to Effectively Manage Project Risks - Slide 3

Email     |     Share  
1 | 2 | 3 | 4 | 5 | 6 | 7
Next How to Effectively Manage Project Risks-3 Next

Risk is always to be analyzed by the probability of the event occurring and the consequence if it does occur, and should focus on the project schedule, costs, scope and quality.

  • Probability – the likelihood that a risk condition will actually occur.
  • Consequence – the impact that might occur from the risk

The estimates of probability and consequences are completely dependent upon subjective estimates. This means that if an estimator is unskilled or inexperienced, the estimates will be inaccurate. If the project manager is not confident in the estimator’s judgments, then subject matter experts from other projects should be invited to participate in the qualitative analysis process.

Risks can be foreseeable and unforeseeable. In both cases, astute project managers are prepared with some means of dealing with them. Many risk management plans address only foreseeable risks and fail to address the unforeseeable ones. For that reason, project planning must include a degree of schedule, cost, and scope margin.

Michael Taylor, a project manager with more than 30 years of experience, suggests that the most effective way to manage project risks is to adopt a process that systematically deals with the overall problem of uncertain events and conditions that might affect a project’s objectives. This process involves the following five steps.

More Slideshows:


More Smartphones that Work for Business New smartphones for today's business user.

Eight Steps to Leveraging Social Networks in Your Job Search Eight steps to focus your online job search.


10 Elements to Look for to Distinguish Agile Enterprise Integration Software Characteristics that can help you identify an AIS.

 

Related Topics : Database Migration, Infrastructure, Project Management, Request for Proposals, Strategic Planning

 
More Slideshows

IT_Man86-290x195 5 Criteria for Selecting the Best Enterprise Collaboration Tool

Chosen carefully, collaboration tools will save time, cut costs and reduce complications associated with storing and retrieving documents throughout a company's operations. ...  More >>

Time3-190x128 Ten Notable Google Project Management Apps

Here are 10 highly rated project management apps from the Google Apps Marketplace that could provide you with the organization needed to successfully complete your next project. ...  More >>

infra29-190x128 The Differences Between Hardware Design and Software Development

Here are a few of the key differences between hardware design and software development. ...  More >>

Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.