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Agile Project Management - Engaging Your Customer!
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Why Projects Succeed - Executive Sponsorship
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On Customer Participation in Agile Projects
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The Benefits of Virtual Project Management
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Lessons Learned and the Project Council
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Project Management Across the Knowledge Domain
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Risk Management - Risk Profiles
July 25, 2008 | Author: PM Hut | Filed under: Risk Identification, Risk Management, Risk Quantification & Analysis
Risk Management - Risk Profiles (#38 in the Hut A Project Management Primer)
By Nick Jenkins
Risk to a project can be measured on two major axes: likelihood of failure and impact of failure.
The more likely a problem is to occur, the more risk it poses the project. Even fairly minor problems or issues can become a threat to the project if they occur so frequently that they can’t be avoided. Similarly, the impact or consequences of a problem are also important. Some problems can stop a project in its tracks all by themselves.
Many systems exist for categorising risks into different categories but the one presented here is fairly simple. In this system each risk item is qualified on two scales: likelihood and impact. Each scale is divided into two categories of “low” or “high” and risks are rated according to each scale.
A “critical” issue represents one that will stop the project in its tracks (known as a “show stopper”) and must be dealt with immediately. “Major” risks represent a significant threat to the project because of their frequency or because of the seriousness of their impact; these threats usually have to be dealt with as soon as possible. The third category of risks are “minor” risks which are neither likely nor particularly serious and can be left until others have been dealt with. Minor risks however have an annoying habit of turning into major ones when your back is turned.
Next in the Hut A Project Management Primer:
Risk Management - Resolution of Risks
Previously in the Hut A Project Management Primer:
Risk Management - Risk Management Officer
Nick Jenkins is an IT manager with 10 years experience in software development, project management and software testing. He’s worked in various fields of IT development in Australia, Britain and the USA and occasionally he learned something along the way. Now he lives on the banks of the Swan River in Perth, Western Australia, and he publishes the odd guide to help aspiring IT professionals. Nick’s website can be found at www.nickjenkins.net.
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