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Risk Analysis: Group Members: Reshma Ravindran Sidhiq Shamweel Vinod Vipin

The document discusses risk analysis and management for a project. It defines risk, describes different types of risks including inherent, acquired and contextual risks. It outlines the risk management process including risk identification, analysis, evaluation, and treatment. Several risk events are listed and a framework for risk analysis and management is provided. The document emphasizes continuous risk assessment and prioritization throughout the project lifecycle.

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Reshma Anand
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82 views18 pages

Risk Analysis: Group Members: Reshma Ravindran Sidhiq Shamweel Vinod Vipin

The document discusses risk analysis and management for a project. It defines risk, describes different types of risks including inherent, acquired and contextual risks. It outlines the risk management process including risk identification, analysis, evaluation, and treatment. Several risk events are listed and a framework for risk analysis and management is provided. The document emphasizes continuous risk assessment and prioritization throughout the project lifecycle.

Uploaded by

Reshma Anand
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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RISK ANALYSIS

GROUP MEMBERS:
RESHMA RAVINDRAN
SIDHIQ
SHAMWEEL
VINOD
VIPIN
What is risk ?
Risk is an event that can cause damage to the income
and/or reputation of an organization.
The risk involved may be either inherent, or acquired
or contextual.
Inherent risk relates to project objectives.
Having a great ambition without proper preparations
makes the project risky.
The acquired risk concerns with the organization,
approach, methods, tools, techniques, skills,
experience, etc.
The contextual risk arises on account of certain
events , circumstances; inter relationships, outside
impact, etc.
There are three ways of looking at risk, quantitative,
socially constructed and qualitative.
Risk always involves two characteristics:
Uncertainty — the risk may or may not happen; that
is, there are no
100% probable risks.
Loss — if the risk becomes a reality, unwanted
consequences or
losses will occur.
When risks are analyzed, it is important to quantify the
level of uncertainty and the degree of loss associated
with each risk.
Known risks are those that can be uncovered after
careful evaluation of the project plan, the business and
technical environment in which the project is being
developed, and other reliable information sources .
Predictable risks are extrapolated from past project
experience
Unpredictable risks are the joker in the deck.
They can and do occur, but they are extremely difficult
to identify in advance.
There are many sources that give rise
to the risky situations and they are,

Human resource
Operations
Reputational
Procedures
Financial.
Technological
Natural
Project Risk
Project risk relates uncertain events or situations that
potentially can adversely affect a project as planned,
usually in terms of cost, schedule, and/or product quality.

Risk management:
Risk Management describes the processes concerned
with identifying, analyzing and responding to project
risk.
It consists of risk identification, risk analysis, risk
evaluation and risk treatment.
Risk Management process

Resolution
Risk management prioritisation Mon

Risk assessment Risk planning/control

dentification Analysis Planning


Risk Analysis
Risk analysis is the process of identifying and
evaluating risk factors, present or anticipated, and
determining both the probability and the impact of
identified risk factors.
Risk analysis is a preliminary step in establishing a
risk management strategy, which is intended to
increase the possibility that the application
development project produces the desired outcome
while minimizing risk factors.
The analysis involves preparation of risk
events in the following format,

Risk Probability of Magnitude of Risk Response


events Occurrence Impact

Medi High Low Medi High No Type of Action


um um actio
n
The risk events, illustratively for a technology
related project have been listed below,

Risk factors/events
 Integration with Current Information Resource(IR) Strategies
 Project Timeline
 Customers IR Experience ·
 Change Control Management
 Customers Work Methods · Development Methodology
 Customers Standard Business Procedures ·
 Experience of Staff
 Higher Management Project Support
 Consultant Personnel Mix
 Middle Management Project Support
The process of risk assessment is not a one time exercise but
continues throughout the project cycle as any risk may and can
crop up any time. Based on the intensity of the impact of the risk
as high, medium and low, the prioritization of risk is done.
Risk Planning/Control

Risk planning and control, as a shared or centralized activity must


accomplish the following tasks:
 Identity concerns that can be impact the project implementation
 Identify risks, review/assess their intensity and document the risk
owners
 Evaluate the risks with reference to probability of their occurrence and
possible consequences
 Assess the plausible options for accommodating the recognised risks
 Prioritize the efforts required for managing the risks
 Develop/discuss and adopt risk management plans
 Authorize the implementation of the risk management plans
 Monitor the risk management efforts and
 Initiate the remedial actions as considered necessary
Risk Control has three elements, as follows
Mitigate Risks Plan for Emergencies Measure and Control.

Take whatever actions For all those Risks Track the effects of the
are possible in advance which are deemed to be risks identified and
to reduce the effect of significant, have an manage them to a
Risk. emergency plan in place successful conclusion.
It is better to spend before it happens
money on mitigation
than to include
contingency in the plan
The managerial principles associated
with risk planning/control are as follows,
Global perspective
Forward-looking view
Open communication
Continuous process
Teamwork
Pooling talents, skills, and knowledge.
Appropriate use of business continuity plans and contingency
plans is an important element of the management of risk
So there are likely to be success criteria identified with
regard to:
Building in a risk allowance based on the risk
assessment
Existence of continuity plans
Management of risk involves having processes in
place to monitor risks; access to reliable, up-to-date
information about risks; an appropriate level of control
in place to deal with those risks; and decision making
processes supported by a framework of risk analysis
and evaluation.
Risks must be managed in an integrated way at four
key levels in order to manage interdependencies –
these levels are strategic, programme, project and
operational.
At a high level, risks can be categorized as follows:
 Business risk
 Service/operational risk
 External risk
Risk Analysis and Management—A
Framework
Define a
framework
Create reference
material for Identify risks
future use

Review and
document THE Evaluate risks
responses efficacy
PROJECT

Implement the
List out risk
decided
owners
responses
List out the Set
alternative to acceptable
mange risks risk levels

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