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RISK MANAGEMENT - Coggle Diagram
RISK MANAGEMENT
Manage risk
- project problem can be reduced as much as 90% by using risk analysis
Positives
- More info available during planning
- Improved probability of success/ optimum project
Negatives
- Belief that all risks are accounted
- Project cut due to risk level
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Common terms
- risk tolerance
- Risk appetite
- Risk Threshold
- Risk adverse
- Risk factor
Quantitative Risk analysis
- Analyze numerically the probability and consequence of each risk
Strategies
Positive risks (or Opportunities)
- Exploit
- Share
- Enhance
- Acceptance
Negative risks (or Threats)
- Avoid
- Transfer
- Mitigate
- Acceptance
Contingency planning
- An alternative plan that will be used if a possible foreseen risk event actually occurs
Costs risk
- Time/cost dependency links: costs increase when problems take longer to solve than expected
Funding risks
- Changes in the supply of funds for the project can dramatically affect the likelihood of implementation or successful completion of a project.
Project Change Management
- Identification of a risk or occurrence of a risk may create a need for a Project Change.
Benefits
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Effect of changes is visible to all parties involved and Scope changes will be quickly reflected in baseline and performance measures