Risk represents uncertainty and all the projects are exposed to some degree of risk.
The process of identifying, assessing and responding to risk is called risk management. It will require ongoing communication with the team and engagement with the stakeholders and continuous monitoring and review.
The risk varies as a result of:
- the extent and duration of the project
- the period time between planning and execution
- level of experience on similar projects
- maturity of the technology used.
Risk can be multifaceted: technical, financial, commercial, reputational (intangible), etc.
6 steps to plan a major risk in the project:
- Understand the context of the project and confirm the objectives
- Risk identification
- Risk assessment – prioritise the risks by severity (a combination of likelihood and impact)
- Risk responses – develop risk response strategies
- Accepted
- Transfered
- Reduced
- Avoided
- Monitor and review – ongoing process
- Communicate
PESTLE.