Risk categorisation , Project Management

Assignment Help:

Risk Categorisation 

Management of risk involves: 

  •   Prevention: To deal with causes. 
  •   Recovery: To deal with effects. 

There are three categories of project risk are: 

  •   Controllable known Risks. 
  •   Uncontrollable Known risks. 
  •   Unknown Risk.  

2430_Risk categorisation.png

Figure: Categories of Risk 

The significant  known projects risks are either controlled or not. However the unknown risk is hidden so specific so we cannot implement any planned actions for them. There are certain things which can be done for managing uncontrolled risks like setting project reserves, budget on the basis of the measured consequences of unanticipated problems on similar past projects and keeping track of specific past projects.  

Root cause analysis helps us to analyse whether the risk arising from factors can be controlled and may therefore be preventable or it is due to uncontrollable causes. When risks are out of control then it can be managed through recovery Example of known controllable risk includes usage of new technology, performance of a deliverable or pressure to establish aggressive deadlines.  

For known uncontrollable risks, the project team has no influence on the source of risk. Example includes loss of project staff, or business reorganisation. To deal with such risks the best way is to deal with effects after the risk occurs, recovering with a contingency pan which is prepared in advance. 

The risk may be a consequence of a project assumption or a choice made in planning that could be changed, resulting in a better project. Hence staffs are a major factor in controlling risks.  


Related Discussions:- Risk categorisation

How you would estimate the project management activity, Explain how you wou...

Explain how you would estimate the project management activity. Project management: This effort is dependent onto two things as whether a full-time project manager is to be

Why flf should undertake competitor analysis, FLF is a courier company base...

FLF is a courier company based in Z Country which presents direct document and parcel express delivery services for commercial customers. It prides itself not only on its reliabili

Task, in what ways consumer changing tastes affecting textile industry?

in what ways consumer changing tastes affecting textile industry?

Project management plan of Reverse osmosis plant, Scope Work breakdown str...

Scope Work breakdown structure Gantt chart Scope cchange management Project budget Project ccash flow

Production management, what do you understand by the term analystical metho...

what do you understand by the term analystical methods of production

Information resources and selection principle, INFORMATION RESOURCES AND SE...

INFORMATION RESOURCES AND SELECTION PRINCIPLE:   The main objective of a library can be stated as" "To provide for the information needs of a given group of users in relation t

Quality tools in process improvement, Question : (a) Describe the impor...

Question : (a) Describe the importance of the following quality tools in process improvement: (i) Pareto diagrams (ii) cause-and-effect diagrams (b) The Managi

Describe the roles of the sponsor, Describe the roles of the sponsor. T...

Describe the roles of the sponsor. The sponsor’s role is to signify the organisation commissioning the project and to create the main business decisions relating this. The spon

Evaluating the project vision, o Is the business problem that the project a...

o Is the business problem that the project addresses clearly defined? o Is the list of stakeholders (ie people affected) by the project complete and correct? o Is the scope o

Project Management Organization Framework, The Big Dig has often been criti...

The Big Dig has often been critiqued due to costs and challenges. To what extent do you think is it possible to identify risks associated with the project early in the project''s l

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd