4.1.3.1. Risks and Changes in Projects

Why Risks and Changes Occur

Definition of Risks

Potential events that may impact a project.

PM’s responsibility: identify and plan for risks.

Examples of Risks

A contractor missing a deadline.

Introducing a tool that causes communication breakdowns.

Unexpected additional work due to new policies.

Impact of Risks

Lead to changes in the project plan.

Changes can alter

tasks,

structures,

processes

Types of Changes

Change Characteristics

Unexpected

Negative impacts (often)

Positive effects (sometimes)

Change Examples

Dependencies:

Tasks that rely on another that can delay progress.

Example: A bathroom remodel where a sink installation depends on plumbing being completed first.

Priorities:

Changes in project scope based on client needs.

Example: Needing to prioritize work on a spare bedroom due to new family circumstances

Capacity or Personnel:

Replacing team members due to issues on-site.

Budget or Resource Limitations:

Reducing costs in one area due to unexpected expenses elsewhere.

Example: Cutting design costs because electrical quotes are higher than expected.

Scope Creep:

Unplanned changes that expand the project scope.

Example: Clients wanting to replace tile in all bathrooms after seeing the new installation.

Force Majeure (bất khả kháng):

Unforeseen circumstances (situations) preventing contract fulfillment.

Ex: strikes or pandemics.

Managing Changes

Measuring Changes

Evaluated against baseline estimates of scope, budget, and timeline.

Be aware of potential knock-on effects (tác động dây chuyền) from changes, which can be positive or negative.

Responsibility for Managing Changes

Managing changes but may collaborate with others.

Documentation for Change Management

Use documents (Statement of Work (SOW) and RACI chart) to manage changes effectively.

Change Request Forms

Purpose

Used by project managers and stakeholders

To track and manage changes.

Form Components

project name,

discussion owner,

type of discussion (risk, opportunity),

teams involved,

expected outcomes,

target date for discussion,

impacted milestones,

current situation description,

proposed changes,

any necessary background information.