RISK MANAGEMENT HIGH LEVEL PROCESS
Where:-
IDENTIFY – is the raising of awareness of either an internal or external risk to the project. Anyone involved with the project can, and should, make the rest of the project team and the stakeholders aware of the risk.
ASSESS – each risk is assessed for probability and impact as well as how soon it might occur. A score is usually assigned to a risk based on this formula:-
Severity = Probability X Impact
The weightings for probability and impact are usually on a scale from 1-10, but this is dependent on the risk assessment method used within your organisation.
PRIORITISE –the risks are prioritised, based on level of severity. If you are using Scrum, you can build a Risk Burndown Chart, which has much in common with a Sprint Burndown Chart.
MITIGATE – A mitigation must be discussed and agreed for each risk. Not all risks can be mitigated, in which case they must be accepted.
REPORT (or COMMUNICATE) – Usually risks are recorded in a Risk Register, which can be circulated to every project stakeholder. The register is updated regularly, according to the company’s business rules on risk reporting. The format of the register is also dependent on your environment. If you are using a Risk Burndown Chart, you can circulate this too.
Recommended Further Reading
The following materials may assist you in order to get the most out of this course: