7.1.2 Bonus article on history of risk
7.1.3 Bonus assignment - Risk Register
Identify risks.
Overview
This learning module (Lesson 1 of Unit 7) is part of a course called Project Management Fundamentals and may either be completed individually as a stand-alone topic, or part of a trio of learning modules on risk management, or as part of the course.
Learning outcomes.
Risk is inherent to projects. No matter how hard you plan, something unexpected almost always comes up. Therefore, you must attempt to predict what could go wrong, so that you can later plan how to deal with it.
Upon successful completion of this module, you'll be able to:
- Identify risks.
- Create a relative risk matrix.
- Describe risk quantitatively.
What is risk management? | 4 minute watch
How do I identify hazzards? | 17 minute watch
What is project risk?
OPTIONAL - Taking a deeper dive into risk management.
If you'd like to learn more about the the language of risk, check out this academic journal article "The risk concept—historical and recent development trends" by Terje Aven (2012).
And if you're interested in learning more about the practice of expert judgment, check out my monograph "Expert Judgment in Project Management: Narrowing the Theory-Practice Gap" (2016).
Test your knowledge.
- T/F: Risk is often expressed as consequence (or impact) multiplied (or added to) probability (or frequency).
- True
- False
- Which of the following is NOT one of the methods for identifying risks?
- Brainstorming
- Probabilistic quantification
- Root cause analysis
- Nominal group technique
- Interviews
- Talk-aloud protocol
- T/F: The most common risk categories are scope risk, cost risk, and schedule risk.
- True
- False
- Where does the highest risk "reside" on the risk matrix (below)?
- Red
- Yellow
- Orange
- Green
BONUS: Putting what you learned in action.
To support this idea of a project that allows students to apply what they've learned on an actual project, I have created a series of five transparent assignments:
- External Management - charter creation and stakeholder analysis
- Internal Management - team contract and RACI chart creation
- Scope Management - work breakdown structure and disctionary creation
- Schedule Management - Network analysis to identify critical path and Gantt chart creation
- Risk Management - Risk identification and analysis, creation of risk register
I have omitted the Cost Management competency group because often student projects do not have a budget, other than that of the students time.
For a project you are involved in, try your had at creating a risk register.
A set of transparent assignment instructions (resource attached) have been provided that includes the following:
- the purpose of the assignment,
- the knowledge and skills that will be developed by the assignment,
- the task involved,
- a checklist of what will need to be accomplished,
- a rubric of how to assess your work, and
- a sample of finished work.
Transparent assignments are a way for you to get clarity on expectations (see the "Unwritten Rules").