Risk categorisation , Project Management

Assignment Help:

Risk Categorisation 

Management of risk involves: 

  •   Prevention: To deal with causes. 
  •   Recovery: To deal with effects. 

There are three categories of project risk are: 

  •   Controllable known Risks. 
  •   Uncontrollable Known risks. 
  •   Unknown Risk.  

2430_Risk categorisation.png

Figure: Categories of Risk 

The significant  known projects risks are either controlled or not. However the unknown risk is hidden so specific so we cannot implement any planned actions for them. There are certain things which can be done for managing uncontrolled risks like setting project reserves, budget on the basis of the measured consequences of unanticipated problems on similar past projects and keeping track of specific past projects.  

Root cause analysis helps us to analyse whether the risk arising from factors can be controlled and may therefore be preventable or it is due to uncontrollable causes. When risks are out of control then it can be managed through recovery Example of known controllable risk includes usage of new technology, performance of a deliverable or pressure to establish aggressive deadlines.  

For known uncontrollable risks, the project team has no influence on the source of risk. Example includes loss of project staff, or business reorganisation. To deal with such risks the best way is to deal with effects after the risk occurs, recovering with a contingency pan which is prepared in advance. 

The risk may be a consequence of a project assumption or a choice made in planning that could be changed, resulting in a better project. Hence staffs are a major factor in controlling risks.  


Related Discussions:- Risk categorisation

The Walsham Hotel, Compare and Contrast the KN346 investment and the "plain...

Compare and Contrast the KN346 investment and the "plain vanilla" alternative.

Total quality management approach within 2jn, 2JN is a large manufacturing ...

2JN is a large manufacturing organisation which is structured with a number of supervisors every responsible for their own work production unit. Supervisors report to a team of sen

Result of management project to prevent false expectations, What would be t...

What would be the result of management project to prevent the development of false expectations? Into the initiation phase, the project management partners enter a temporary co

What is communication in organisation, What is communication in organisatio...

What is communication in organisation? Communication: An organisation structure gives channels for the flow of information on that the decisions of the organisation will

Explain the methodology of sequencing the activities, Question 1 For a...

Question 1 For an event manager, organizing an AGM would be a relatively 'dry' affair as the elements of entertainment, decoration and catering are missing in this event (some

What is delegation of authority, What is delegation of authority? Del...

What is delegation of authority? Delegation: There is a restriction to what an individual can do single-handed. After a point, another person working within the organisat

Effects and four types of risks in engineering projects, Question Using...

Question Using a project drawn from your own experience, discuss the following- (a) What are the two primary stages of risk management of a project? (b) What are the four

Performance problem or challenge, • You also found that over the past 6 mon...

• You also found that over the past 6 months, the Senior Leadership had been very proactive in their attempt to drive a much different strategic vision and had communicated strong

Housekeeping, what is the thumb rule to calculate the housekeeping manpower...

what is the thumb rule to calculate the housekeeping manpower requirement in office

Critical path, Critical Path about wedding planning

Critical Path about wedding planning

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd