Categories of Project Risks
1 Risk Topics
- Risk Identification
- Risk Impact Assessment
- Methods for Risk Management
2 Risk Identification
- Schedule Risks
- Financial Risks
- Technical Risks
- Customer Risks
3 Schedule Risk
- Not enough people
- Too much parallelism - dependencies
- Equipment delays
- Information delays
- Permission delays - export license
- Management pushes too much
4 Financial Risks
- Austere (bare bones) budget
- Additional and unforeseen expenses
- Inflation issues due to schedule issues
- Contract penalties - late on delivery
- Reduction of funding
- Availability of necessary equipment
5 Technical Risks
- Just can’t be done
- equipment availability
- Technology availability
- Technology has surpassed your assumptions
- Availability of technically competent People
6 Customer Risks
- Sophistication of customer
- Too high
- Too low
7 Major Risk Factors
- Resources not yet part of project inventory
- Possibility of changes in project requirements
- Potential alteration of fixed project dates
- Unexpected losses of critical personnel
- Reduction of funding
- Technological achievements not realized
- Improper budgets or scheduling factors
8 Identifying Project Risk Factors
- Project plan evaluation - Q & A
- Answer the “What if” questions
- Review of test plan
- Listing of all things that could go wrong
- Murphy’s Law
9 Risk Prioritization
- Greatest damage
- Longest delay
- Highest cost increase
- Largest detraction of project goals
- Greatest disruption of project organization
10 Schedule Risk Management
- Reduce scope of work
- Extend schedule
- Do more work in parallel
- Jump start project by purchasing technology
11 Financial Risk Management
- Find ways to cut corners
- Less expensive hardware
- Reduce overheads
- Negotiate additional funds
- Change labor mix
12 Technical Risk Management
- Invest in Research and Development
- Hire experts
- Change approach
- Don’t do it!
13 Customer Risk Management
- Formal reviews
- Specific agreements in writing
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