Chapter 14 - Risk Analysis

Part 3

Summary

To summarise the keywords of that chapter, here is a quick overview:

Technical term Definition
Types of risks Commercial risks
Technical risks
Time-related risks
Resource-related risks
Political risks
Risk response Risks can be avoided, reduced, mitigated, transferred or accepted
Risk value Probability of an event occurring (%) times the impact if it occuring (CHF)

Let's practice - transfer project

Now it's your turn!

Take a pen and create a risk analysis for your wedding-project! You can find a possible solution below - this is just a suggestion. Maybe you have better ideas which are not listed here? This is great!

Solution

Test yourself!

Now it is time to check your knowledge.

Answer the following questions for yourself. Please take your time and think carefully about what you would answer before revealing the solution.

What types of risks are relevant for projects?
  • Commercial risks
  • Technical risks
  • Time-related risks
  • Resource-related risks
  • Political risks
Why should risk management be carried out?
  • Risk prevention is less expensive than damage control.
  • Risk management is prescribed by law (Control and Transparency in Business Act).
  • To improve sustainability and reputation (sustainability management).
  • Necessary to secure an order (maturity models).
  • Possible risk to the organisation's going concern status in large-scale projects.
Why does a risk workshop have to be implemented in the project start-up phase?
  • To ensure the timely identification of risks and introduce measures that protect the project against these risks.
  • To pool and incorporate the knowledge and experience of all project team members in the project.
How are risks assessed?

Monetary evaluation via risk value.

Risk value = probability of an event occurring (%) x impact if it does occur (CHF)

What risk prevention strategies can be used?
  • Risk avoidance, i.e. prevention of risk exposure
  • Risk reduction, i.e. implementation of preventive measures
  • Risk mitigation, i.e. keeping the consequences to a minimum
  • Risk transfer, i.e. transferring the risk to others
  • Risk acceptance, i.e. accept the risk and take no preventive measures
What is the definition of a risk analysis?

Identification, classification and evaluation of project risks.

What is the definition of a risk management?

Development and implementation of measures.

What methods can be used for identifying risks?
  • Use of checklists
  • Implementation of a risk workshop
What is the difference between risk analysis and risk management?

Risk analysis:
Identification, classification and assessment.

Risk management:
Additionally establishes and implement measures.