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If you want to buy the project management book mail [email protected] for more details or call any of our book shops MUMBAI-22078296/97/022-22070989, KOLKATA-22826518/19 HYDERABAD-24756967,24756400,BANGALORE-25587923, 25584641,AHMEDABAD-26421611,BHATINA(PUNJAB)-2237387,CHENNAI-28410796,28550491,DELHI/NEWDELHI-23254990/91,23325760,26415092,24691288.If you want to write to the author directly email at [email protected]

(I) How did you plan your risk?

Below figure ‘Risk management’ shows how the risk is identified and planned. It’s possible that every organization or we will say rather every project differ in the way they plan risk. We will look in to the way generally a process oriented organization will look at how risk is planned.

Identify risk: - In this phase we describe risk with a detail description and assign a risk id number to the same. This is normally done in discussion with team members and stake holders.

Risk ID	Risk Description
1001	Resignations in project
1002	Customer changes a lot.
1003	New technology
1004	Power shutdown

Table: - Risk Identification

Evaluate risk: - In this phase we evaluate importance of every risk. For this we can put what’s the rate by which this risk occurs. In the below table we have assigned 1, 2 and 3 as the rating for the risk. So 1 à low probability, 2 à medium probability and 3 à high probability.

Risk ID	Risk Description	Probability of failure
1001	Resignations in project	3
1002	Customer changes a lot.	2
1003	New technology	1
1004	Power shutdown	2

Table: - Give probability rating

Analyze risk impact: - Only occurrence does not conclude how important the risk is, we need to also consider the other aspect what can be the impact of the risk on the project. In the below table with probability we have also defined the impact of the risk on the project. 1à Low impact , 2 à medium impact and 3 à will impact project to a great extent.

Risk ID	Risk Description	Probability of failure	Impact
1001	Resignations in project	3	1
1002	Customer changes a lot.	2	2
1003	New technology	1	1
1004	Power shutdown	2	3

Table: - Give impact rating

Prioritize risk: - In this phase we logically organize the risk so that we can deal with the same in a prioritized manner. One of the ways we use to define priority is by adding probability and impact. You can find the last column priority is the total of probability + impact.

Risk ID	Risk Description	Probability of failure	Impact	Priority
1001	Resignations in project	3	1	4
1002	Customer changes a lot.	1	2	3
1003	New technology	1	1	2
1004	Power shutdown	2	3	5

Table: - Depending on probability and impact decide priority

Depending on the priority we again rearrange the risk. Below table shows the risk now arranged in a prioritized way. This gives us a logical way of dealing with the risks.

Risk ID	Risk Description	Priority
1004	Power shutdown	5
1001	Resignations in project	4
1002	Customer changes a lot.	3
1003	New technology	2

Table: - Rearranging risk according to priority

Plan for mitigating risk: - Once we have arranged the risk its time to see how we solve the same. In this phase for every risk we list down what is our action or mitigation for the same.

Risk ID	Risk Description	Risk Mitigating plan
1004	Power shutdown	Put backup servers on different geographical locations.
1001	Resignations in project	Should have weekly knowledge transfer plan so that project does not depend on one resource.
1002	Customer changes a lot.	Requirement documents and acceptance plan should be signed off before starting the project.
1003	New technology	Before starting the project every one in the team should go through a proper training on the new technology.

Table: - Mitigation plan for risk

Monitor and control risk: - This is an on going phase where every risk is tracked and new risk if they come in they are added and prioritized by doing impact analysis.

Figure: - Risk Management

Note: - One of the important points which an interviewer will like to see is how the risk was prioritized. In the above explanation we have done the same by adding probability and impact, but it can vary. For instance in many of the organization it can be done by having joint meeting with stake holders where the risk will be prioritized.

If you want to buy the project management book mail [email protected] for more details or call any of our book shops MUMBAI-22078296/97/022-22070989, KOLKATA-22826518/19 HYDERABAD-24756967,24756400,BANGALORE-25587923, 25584641,AHMEDABAD-26421611,BHATINA(PUNJAB)-2237387,CHENNAI-28410796,28550491,DELHI/NEWDELHI-23254990/91,23325760,26415092,24691288.If you want to write to the author directly email at [email protected]

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