You Exec - Risk Management Free
You Exec - Risk Management Free
You Exec - Risk Management Free
Types of Risks
› Macroeconomic
› Political Issues
› Legal Issues › Debt and interest rates
› Terrorism › Financial management
› Natural disasters › Asset losses
› Goodwill and amortization
› Accounting problems
Hazard
Financial
Identification of Risk Categories
Customer Demand
Risk Sub Category Funding Capacity Capacity Availability
Retention Shortfall
Likelihood 2 3 3 4 5 5
Risk level
Profitable Growth
Low Price
Leverage Technology
High
Likelihood
Risk Tolerance
Insignificant fall <7% schedule 7-10% schedule 10-15% schedule 15-20% schedule
Schedule in schedule slippage slippage slippage slippage
Insignificant scope Minor areas of Major areas of Reduction Project end item
Scope decrease scope affected scope affected unacceptable is useless
Only demanding
Barely noticeable Reduction requires Reduction Project end item
Quality degradation
applications are
approval unacceptable is unusable
affected
Risk Register
Probability Impact
Type Description of Risk Response Risk
of Risk Risk H M L Perf. Cost Time
Strategy Owner
Time Cost
› Schedule overruns › Budget Exceeded
› Tasks omitted from Schedule › Unanticipated
› Opportunity to compress › Expenditure
Schedule
Resources
Communication Identify › Team is under-resourced
› Materials shortage
› Poor communication Risks › Machinery unavailable
(Stakeholder dissatisfaction) › Industrial Action
› Positive & timely › Skills gap
communications (positive
publicity)
Environmental
Scope
› Bad weather results in re-work
› Scope creep › Weather delays progress
› Scope poorly defined › Adverse effects occur
› Project changes poorly › Environmental approvals not
managed complied with
Risk Impact & Probability Analysis
Impact Cost Time Quality
Require some additional Slight slippage against key Failure to include certain
Low funding from Institution milestones or published targets ‘nice to have’ elements
Requires Significant additional Delay affects key stakeholders – Significant elements of scope for
Medium funding from Institution loss of confidence in the project functionality will be unavailable.