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

Increasing interest in employ of application development, Increasing intere...

Increasing interest is being taken in the employ of quick application development. Why is that, and are there any dangers related with the RAD approach? RAD has come to promine

Performance appraisal help in operational decision making, How is the Perfo...

How is the Performance Appraisal help in operational decision making? Performance Appraisal helps in operational decision making in personnel management gives clues to manageme

What are important traits for a coach of a cricket team, What are the impor...

What are the important traits for a coach of a cricket team needed? The three significant traits needed for a coach of a cricket team are as follows: a. Decisiveness: The

Processes and customer involvement, Processes and Customer Involvement ...

Processes and Customer Involvement Many processes are designed keeping in mind that value is provided by involving the customer in the delivery of the final product.  The invo

Steps of project manager to enhance likelihood of project, Ideally, the nee...

Ideally, the need for an IS project would be given in some detail before planning begins. When the requirement is not detailed adequate, what steps can the project manager take to

Record modules, We have four record modules that count either numbers or ca...

We have four record modules that count either numbers or calculate time. The first one calculates the exit time for all types of patients. The second counts the number of exception

Leadership - participative management, Leadership: Leadership behaviou...

Leadership: Leadership behaviours lead to  highly  motivated staff. Subordinates rely upon the leadership skills of their  superiors to  show them  how to achieve their needs

Factors affecting process design - nature of product, Factors affecting Pro...

Factors affecting Process Design - Nature of Product The operations management has to design the production systems to produce products/ service of the kind that customers wan

Explain about the budgeting process in risk management, Explain about the b...

Explain about the budgeting process in risk management. The budgeting process: A budget is a quantified or forecast plan of action. A quantified financial plan of action

Elements of total quality management, ELEMENTS OF TOTAL QUALITY MANAGEMENT ...

ELEMENTS OF TOTAL QUALITY MANAGEMENT (TQM): The philosophy of Total Quality Management is based on understanding customer needs and improving customer service and satisfaction

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