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Identifying and managing project risks are critical tasks for project managers. From a project management perspective, risks must be managed from the start of a
Identifying and managing project risks are critical tasks for project managers. From a project management perspective, risks must be managed from the start of a project until its completion; therefore, a Risk Breakdown Structure RBS is an important tool that project managers use to successfully complete projects. Assume that you are a project manager who is to manage a project to set up a training facility in China to teach project management classes. This project is to be completed within a twomonth period, starting from today.
Identify the risks in the form of "causeriskeffect," as described below:
One of the most common riskidentification mistakes is considering things to be risks when they are not. One approach is to treat anything with a probability of greater than percent as a certainty. "Lack of resources" is not a risk, nor is "not enough time to complete the project." If it is known that the length of time required to complete a project is shorter than the time allocated, then this is not a riskits a fact. Such facts should be addressed in the project management plan through crashing, fasttracking, reestimating, removing scope, using other forms of schedule compression, and bringing the situation to management, but not as part of risk management.
To differentiate risks from facts and to adequately define risks, use the CauseRisk Effect' format for naming risks: As a result of definitive causeuncertain event may occur, which wouldcouldmay lead to effect Such definition of risks provides enough information for the team to follow the rest of the project management process. See the following examples of risks in the causeriskeffect format:
As a result of a lack of clear direction for the scope of work for the XYZ component, there could be rework and wasted efforts, which could delay the project completion from two to four weeks.
As a result of the amount of work the customer is trying to accomplish on many projects during this project's completion, a delay in the response to our requests for approvals may occur, which could result in a twoweek delay in project completion. Effects could relate to project objectives, project constraints, and risk tolerances." Mulcahy p
Discuss and analyze the importance of each of the four types of risk identified in Figure technical management, commercial, and external
Create a risk breakdown structure and attach it as an appendix.
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