Project Risk Management

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Presentation transcript:

Project Risk Management Everything is sweetened by risk. ─ Alexander Smith But boundless risk must pay for boundless gain. ─ William Morris

Qualitative Risk Analysis Assessing the likelihood & impact of identified risks, to determine their magnitude & priority (Schwalbe, 2006, p. 441) Qualitative Tools: Probability/Impact Matrix (p. 442) Top Ten Risk Item Tracking (p. 446) Expert Judgment (p. 446 – 447)

Quantitative Risk Analysis Includes data gathering, quantitative risk analysis, & modeling techniques Can follow Qualitative Risk Analysis, or both can be done together, or separately Quantitative Tools: Decision Trees (p. 448) Simulation (p. 449) Sensitivity Analysis (p. 452)

Risk Responses Avoidance – eliminate cause of risk Acceptance – accept consequences Transference – shift consequence to 3rd party Mitigation – reduce impact of risk