Understand Risk And Issue management In The Context Of Project Management Flashcards
2.2.3 risk and issue management
2.2.3 risk and issue management
Explain each stage in a risk management process (identification, analysis, response and closure)
The risk management records is iterative to reflect the dynamic nature of project work: capturing and managing emerging risks and reflecting new knowledge in existing risk and analyses and estimates of contingency is required
Risk is aligned to schedule and resource management
Cost estimates should always take risk into account
It is important to identify and manage behavioural influence on the risk process, both individual and group = can have a significant impact on risk management effectiveness
Explain proactive and reactive responses to risk (avoid, reduce, transfer, accept and exploit, enhance, share and reject
Response planning: aiming to avoid, reduce, transfer, or accept threats as well as exploit, enhance share or reject opportunities with contingency (time, cost, resource, and course of action) for risk which cannot be managed proactively
The process has a Interactive nature
For example: assessment or response planning can lead to the identification of further risks and planning and implementing responses can trigger a need for further analysis
Explain the benefits of risk management
- business risk assessment
- organisational governance requirements
- carrying out effective risk management takes fewer resource than reacting to risks
- compliance with governance, but at a reduced cost base, better relationship with customer and enhanced reputation
Explain the key aspects of issue management
Issue management is the process by which issues can be identified and addressed to remove the the threat they pose
Issues need a response immediately whereas Risk are in the future and need to be mitigated
Log of issues raised = details of all issues raised, evaluation, decisions made and current status = great for lessons learnt
Explain the role of contingency planning in projects
Planning for success + risk and issue management
Contingency fund helps manage risk
It can be a financial amount or time allowance
Contingency management links to risk management, issue management and change control
