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11.2 Identify Risks The process of determining which risks may affect the project and documenting their characteristics This is an iterative process as new risks may evolve or become known during the project Participants in risk identification activities can include – Project Manager and Project Team Project Sponsor and Stakeholders Risk management experts Customers Subject Matter Experts Other Project Managers Occurs during Planning Initiation Planning Execution Close Monitor Control Adapted from PMBOK 5th Edition
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11.2 Identify Risks Inputs to Identify Risk Risk Management Plan
Cost Management Plan Schedule Management Plan Quality Management Plan Human Resource Plan Scope Baseline Activity Cost Estimates Activity Duration estimates Project Documents: e.g.: Project Charter Project Schedule Schedule network diagrams Issue log Quality checklists Initiation Planning Execution Close Monitor Control Adapted from PMBOK 5th Edition
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11.2 Identify Risks Inputs to Identify Risk (continued)
Stakeholder Register Procurement Documents Enterprise Environmental Factors: published information academic studies industry studies Benchmarking risk attitudes checklists Organisational Process Assets - Project Files Organisational and project process controls Risk Management Templates Lessons Learnt Initiation Planning Execution Close Monitor Control Adapted from PMBOK 5th Edition
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11.2 Identify Risks Tools and techniques for identifying risk include - Questionnaires Interviews and Surveys Documentation Reviews Brainstorming Workshops Root Cause Analysis System or Process Flowcharts Assumptions Analysis Checklist Analysis Cause & Effect Diagrams SWOT Analysis Expert Judgement Influence Diagrams Risk Categories Lessons Learnt Industry Risk Frameworks Delphi Technique Adapted from PMBOK 5th Edition
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11.2 Identify Risks Risk Checklists & Questionnaires
Many organisations and certain industries have standard risk checklists and questionnaires that assist with the identification of the overall risk on a project, as well as the specific risks that may be applicable Assumptions Analysis Any assumptions that have been documented during the planning processes need to be analysed and included in the Risk Log. If any assumption does not prove to be true there will be impacts to project objectives, the risk of assumptions proving untrue must be evaluated. Risk Categories Many organisations and certain industries have standard risk categories which help to ensure that all risk areas are reviewed when undertaking risk planning Technical Marketing Human Resources
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11.2 Identify Risks Delphi Technique Cause and Effect Diagrams
Used to reach a consensus of experts – anonymous questionnaires that are then collated and recirculated for further comments. Cause and Effect Diagrams Used to identify the causes of risks. Source:
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11.2 Identify Risks Influence Diagram
Graphical representations of causal influences, time ordering of events, other relationships between variables and outcomes. From PMBOK 5th Edition
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11.2 Identify Risks SWOT Analysis Expert Judgement
Standard approach used to identify risks and opportunities during business planning and marketing activities. Can also be applied to project risk identification. Involves the identification of an organisations Strengths, Weaknesses, Opportunities and Threats. Weakness and Threats may need to documented in project risk logs. Expert Judgement Many organisations will have specialised risk management teams that can provide expert assistance to projects in the planning and identification of risks. In very risky projects it may also be helpful to consult external subject matter experts. Industry Risk Frameworks Some industries, particularly Construction and Defence, have standard risk frameworks which are extremely helpful to project risk management.
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Sample column headings in a typical Risk Register
11.2 Identify Risks Outputs of this process include – Initial entries on the Risk Register List of identified risks Potential risk owners List of potential responses Sample column headings in a typical Risk Register Risk ID Risk Category Risk Description Risk Owner Likelihood Impact Risk Rating Management /Mitigation Strategies Residual Likelihood Residual Impact Residual Rating Status Priority Adapted from PMBOK 5th Edition
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Inclusions in Risk Register during Planning
Risk ID Risk Category Risk Description Risk Owner Likelihood Impact Risk Rating Management /Mitigation Strategies Residual Likelihood Residual Impact Residual Rating Status Priority Risk Id Can be a simple as a number May relate to the risk category Used as a unique identifier may be an internal standard Risk Description Plain English explanation of the risk One to two sentences in length Ensures common understanding Risk Category Can be taken from industry frameworks Can be set at internal standards May need to be developed/tailored Ensures identification of all risks Assists with monitoring and control Risk Owner A specific person or role Ensures clear ownership of the risk Responsible for monitoring & control Adapted from PMBOK 5th Edition
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Example – first part of Risk Register
Risk ID Risk Category Risk Description Risk Owner MK001 Marketing Marketing may not be able to book the required advertising with the Fairfax group due to conflict of interest Brian Green HR001 Human Resources May not be able to obtain a qualified Plumber in the time available Fred Jones
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