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Risk Management Level 1 - Coggle Diagram
Risk Management Level 1
General
Risk
Definition - An uncertain event or set of circumstances that, should it occur, will have a negative effect on the project's objectives
Risk Assessment
Definition - An assessment of the risk to identify the likelihood and severity of the hazard was to occur
Quantitative Risk assessment - provides a quantitative approach for assessing risks in terms of possible money/schedule costs
Qualitative risk assessment - provides a qualitative approach for assessing risks in terms of their relative impact/likelihood
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Risk Register
Definition - A document listing all the risk identified for the project, explaining the nature of each risk qualitatively
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Risk Allowance
Definition - A sum included in the estimate to cover unknown expenses or unmitigated risks during the project. An estimate of the cost of dealing with an individual risk should it materialise
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Risk allocation
Definition - Risks should be allocated to those best able to manage it, in a manner likely to optimise project performance. The allocation should be clearly identified to a 'owner' on the risk register.
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Risk Management
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Risk management Process
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2) Assess - The individual and combined effect of the risk using qualitative and quantitative methods to define probability and impact on the project.
3) Manage - the probability of a risk arising by assigning risk owners and agreeing management actions. How to reduce the probability of the risk occurring and how to determine a plan and set aside contingencies to deal with risk
4) Monitor - the risk register and reassess the likelihood and impact of risks at defined intervals, monitoring the process and reporting back to the client and project team. Ensure that the mitigation measures are being carried out and that risk workshops are organised at key times throughout the project.
Risk categories
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What are the tools to evaluate, mitigate and manage risks?
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Root Mean Square Method
Definition - In mathematics, the root mean square, also known as the quadratic mean, is a statistical measure of the magnitude of a varying quantity. It can be calculated for a series of discrete values or for a continuously varying function. The name comes from the fact that it is the square root of the mean of the squares of the values. Main dangers to look out for when analysing risk
Risk tends to have a 'knock-on' effect and so it is important to consider not only the effect of individual risks but their cumulative effect as well
Issue Management
1) Issues differ from risk as these are problems that have occurred outside the control of the project manager
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3) Unlike risks which are uncertain events, issues are usually classified as events which are happening now or will almost certainly happen in the future. Therefore, issues require more immediate action than risks.
4)Typically, issues can arise from sources such as unmediated disputes, unaddressed concerns, unresolved decision-making or risks that have occurred (thus becoming an issue).