Awesome concise information and resource!
Thanks
In this section, the tools and methodologies that you can use during various phases of managing a risk are briefly described.
There are many tools and techniques for Risk identification. Documentation Reviews
Root cause analysis – for identifying a problem, discovering the causes that led to it and developing preventive action
Checklist analysis
Assumption analysis -this technique may reveal an inconsistency of assumptions, or uncover problematic assumptions.
Diagramming techniques
Cause and effect diagrams
System or process flow charts
Influence diagrams – graphical representation of situations, showing the casual influences or relationships among variables and outcomes
SWOT analysis
Expert judgment – individuals who have experience with similar project in the not too distant past may use their judgment through interviews or risk facilitation workshops
Tools and Techniques for Qualitative Risk Analysis
Probability distributions– Continuous probability distributions are used extensively in modeling and simulations and represent the uncertainty in values such as tasks durations or cost of project components\ work packages. These distributions may help us perform quantitative analysis. Discrete distributions can be used to represent uncertain events (an outcome of a test or possible scenario in a decision tree)
Quantitative risk analysis & modeling techniques- commonly used for event-oriented as well as project-oriented analysis:
Sensitivity analysis – For determining which risks may have the most potential impact on the project. In sensitivity analysis one looks at the effect of varying the inputs of a mathematical model on the output of the model itself. Examining the effect of the uncertainty of each project element to a specific project objective, when all other uncertain elements are held at their baseline values. There may be presented through a tornado diagram.
Expected Monetary Value analysis (EMV) – A statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen (generally: opportunities are positive values, risks are negative values). These are commonly used in a decision tree analysis.
Modeling & simulation – A project simulation, which uses a model that translates the specific detailed uncertainties of the project into their potential impact on project objectives, usually iterative. Monte Carlo is an example for a iterative simulation.
Cost risk analysis - cost estimates are used as input values, chosen randomly for each iteration (according to probability distributions of these values), total cost will be calculated.
Schedule risk analysis - duration estimates & network diagrams are used as input values, chosen at random for each iteration (according to probability distributions of these values), completion date will be calculated. One can check the probability of completing the project by a certain date or within a certain cost constraint.
Expert judgment – used for identifying potential cost & schedule impacts, evaluate probabilities, interpretation of data, identify weaknesses of the tools, as well as their strengths, defining when is a specific tool more appropriate, considering organization’s capabilities & structure, and more.
Risk Response Planning
Please sign in to leave a comment.
Awesome concise information and resource!
Thanks
thanks, this pretty much summed up a 500 page book
Agree to the above..excellent article
comprehensive summary, but with risk responses strategies could be better though.
Great Post!! I have found another related article too in the link below:
http://technology-vibe.com/blog/beneficial-project-management-tools-2/
Thanks
Great Post!! I have found another related article too in the link below:
http://technology-vibe.com/blog/beneficial-project-management-tools-2/
Thanks
It was really Helpful in create a risk management plan that we developing thanks & love from** http://digitallove.in/**
thanks a lot, it was very much helpful
awesome article!
Thanks very much for sharing it
thank you
great! very useful for me thanks
Thank you for above valuable insights into risk management, which is of prime importance to every organisation.