Project Risk Management

1
Project Risk Management

• Everything is sweetened by risk.
• - Alexander Smith
• But boundless risk must pay for boundless gain.
• - William Morris

2
Qualitative Risk Analysis

• Assessing the likelihood impact of identified
  risks, to determine their magnitude priority
  (Schwalbe, 2006, p. 441)
• Qualitative Tools
• Probability/Impact Matrix (p. 442)
• Top Ten Risk Item Tracking (p. 446)
• Expert Judgment (p. 446 447)

3
Quantitative Risk Analysis

• Includes data gathering, quantitative risk
  analysis, modeling techniques
• Can follow Qualitative Risk Analysis, or both can
  be done together, or separately
• Quantitative Tools
• Decision Trees (p. 448)
• Simulation (p. 449)
• Sensitivity Analysis (p. 452)

4
Risk Responses

• Avoidance eliminate cause of risk
• Acceptance accept consequences
• Transference shift consequence to 3rd party
• Mitigation reduce impact of risk