9.2 Identify Risks - 9.2 Identify Risks - 9.2 Identify Risks
Identifying Risks is a critical process in Project Risk Management that involves recognizing potential risks that could impact the project's success. This process ensures that project managers are aware of potential threats and opportunities, allowing them to develop strategies to mitigate or capitalize on them.
Key Concepts
1. Risk Sources
Risk Sources are the origins or causes of potential risks. These can include internal factors such as project team capabilities, project management practices, and external factors such as market conditions, regulatory changes, and environmental factors.
Example: In an engineering project, risk sources might include the availability of specialized equipment, changes in government regulations, and the experience level of the project team. Identifying these sources helps in understanding where potential risks might arise.
2. Risk Categories
Risk Categories are groupings of risks based on common characteristics or causes. Common categories include technical risks, external risks, organizational risks, and project management risks. Categorizing risks helps in organizing and prioritizing them for further analysis.
Example: For a construction project, risk categories might include technical risks related to design and construction, external risks related to weather and market conditions, and organizational risks related to resource allocation and management practices.
3. Risk Identification Techniques
Risk Identification Techniques are methods used to recognize potential risks. These techniques include brainstorming, expert judgment, checklists, SWOT analysis, and root cause analysis. Using multiple techniques ensures a comprehensive identification of risks.
Example: In a software development project, risk identification might involve brainstorming sessions with the team, consulting with industry experts, and using a risk checklist that includes common software development risks such as technical debt and scope creep.
4. Risk Register
The Risk Register is a document that captures all identified risks, including their descriptions, categories, potential impacts, and initial responses. The risk register serves as a central repository for risk information and is used to track and manage risks throughout the project.
Example: For an engineering project, the risk register might list risks such as "Delay in equipment delivery" with a description, category (external), potential impact (schedule delay), and initial response (procure backup suppliers). This register helps in maintaining a clear record of all identified risks.
5. Stakeholder Involvement
Stakeholder Involvement is the process of engaging project stakeholders in the risk identification process. Stakeholders can provide valuable insights and perspectives that might not be apparent to the project team. Involving stakeholders ensures a more comprehensive identification of risks.
Example: In a construction project, involving stakeholders such as contractors, suppliers, and local authorities in risk identification might reveal risks related to supply chain disruptions, safety regulations, and community concerns that the project team might not have considered.
6. Risk Breakdown Structure (RBS)
The Risk Breakdown Structure (RBS) is a hierarchical representation of risks organized by category. The RBS helps in visualizing and categorizing risks, making it easier to understand and manage them. It is similar to the Work Breakdown Structure (WBS) used in project scope management.
Example: For an engineering project, the RBS might include categories such as technical risks, external risks, and organizational risks, with subcategories under each. This structure helps in systematically organizing and analyzing risks.
7. Risk Assessment
Risk Assessment is the process of evaluating the identified risks to determine their potential impact and likelihood. This assessment helps in prioritizing risks and determining the appropriate response strategies. Risk assessment techniques include qualitative and quantitative analysis.
Example: In a software development project, risk assessment might involve evaluating the likelihood and impact of risks such as "Technical debt" and "Scope creep." This assessment helps in prioritizing these risks and developing mitigation strategies.