6.4.4  Risk Management Process

The Risk Log is based on a continuous risk management model. The model consists of five phases, as detailed in Figure 5.

Figure 4 Risk Management Process

 

Phase

Tasks

1

Identification

Identify potential risk & establish risk categories

2

Analysis

•  Establish probability & impact definitions

•  Evaluate impact of risks

•  Rank Risks - calculate exposure

3

Plan

•  Select risks to be mitigated

•  Select mitigation strategies

•  Insert action and review points in the WBS
plan

4

Track

Track report status

5

Control

Take corrective actions
Adjust control plan
Close risks
Document lessons learned

The objectives of this process are to develop consistent methods and tools for the Risk Management process and establish roles and responsibilities of all participants in the process.

Figure 5 - Risk Measurement Tools

 

Phase

Tasks

Impact

Low

Minimal disruption to project progress

Medium

Moderate disruption to project progress, schedule implications

High

Extended disruption to project progress, cost implications

Probability

Low

Unlikely to happen

Medium

May happen

High

Likely to happen

Risk Exposure

(Score)

Impact * Probability

Risk Mitigation

Major

Mitigate

 

Moderate

Review

 

Minor

Accept