Project risk control and risk monitoring is where you keep track of about how your risk responses are performing against the plan as well as the place where new risks to the project are managed.
You must remember that risks can have negative and positive impacts. Positive risk is a risk taken by the project because its potential benefits outweigh the traditional approach and a negative risk is one that could negatively influence the cost of the project or its schedule.
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Qualitative Risk Analysis is a measure of risk or asset value based on a ranking or separation into descriptive categories such as low, medium, high; not important, important, very important etc. or on a scale from 1 to 5.
Qualitative Risk Analysis includes methods for prioritizing the identified risks for further action, such as Quantitative Risk Analysis or Risk Response Planning. Organizations can improve the project’s performance effectively by focusing on high-priority risks. Qualitative Risk Analysis assesses the priority of identified risks using their probability of occurring, the corresponding impact on project objectives if the risks do occur, as well as other factors such as the time frame and risk tolerance of the project constraints of cost, schedule, scope, and quality.
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Risk Identification is the process of determining which risks might affect the project and documents their characteristics. Participants of risk identification activities: project manager, project team members, risk management team (if identified), subject matter experts from outside the project team, customers, end users, other project managers, stakeholders, and risk management experts. While these personnel are often key participants for risk identification, all project personnel should be encouraged to identify risks.
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Risk management approach should be to prevent negative risks and enhancing positive risks. This approach is recomended by PMI (Project Management Institute). Based on this approach, below are some key principles of risk management:
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Risk management is an essential activity of project management. It is important to classify risks into appropriate categories. Risks can be classified into following 13 categories:
1. Operational Risk: Risks of loss due to improper process implementation, failed system or some external events risks. Examples can be Failure to address priority conflicts, Insufficient resources or No proper subject training etc.
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Risk Management Planning is the process of developing an approach and executing risk management activities for a project. Inputs to Project Risk Management Planning: The inputs to Risk Management Planning include:
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