Risk Management Module 3D Canada Bridges Project Management Tools Risk Management - Module 3D 1.

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Risk Management Module 3D Canada Bridges Project Management Tools Risk Management - Module 3D 1

When you plan a project, you must also assess the risks that could affect the project. This step tries to identify any event that if it occurred, could have a negative or positive impact on your project. This can be events that are within your span of control but also events that are outside your control. What is Risk Management? Canada Bridges Project Management Tools Risk Management - Module 3D 2

You first look at the impact and the probability of the risk. The risk could impact the project financially, its timing, its security and its overall success. You must look at the probability of the risk and you decide/assess whether you will take preventive actions or if you will ignore it (e.g.: if impact and probability of occurrence are both low), you can make informed decisions about the mitigation of any risk threatening the project. The Impact of Risk Management Canada Bridges Project Management Tools Risk Management - Module 3D 3

You will need to build a Risk Management Tool that helps you identify the potential risks. We call this a Risk Matrix. Speak to as many people as you can to get their input as to the potential risks that could affect the project. You want to brainstorm…..think of every possible thing that could go wrong. What do you do? (Contd) Canada Bridges Project Management Tools Risk Management - Module 3D 4

Then you look at: – the probability of it occurring – whether high, medium or low and – the impact – whether critical, significant or minor Dont spend a lot of time trying to mitigate (reduce) the risk of something that has a low probability of occurring &/or would have limited impact on the overall project. What do you do? Canada Bridges Project Management Tools Risk Management - Module 3D 5

A Sample Risk Matrix (add more rows with all your identified risks) What are the Risks? What is the impact? -High -Medium -Low What is the probability of this risk? -High -Medium -Low Describe the riskHow can you mitigate it? You dont get the necessary funding HighLowYou dont get the required funds to complete the project or do it to the level desired Ensure funding &/or all necessary approvals are in place before you start. Prepare a complete budget. Canada Bridges Project Management Tools Risk Management - Module 3D 6

Once you have created your Risk Matrix tool, you need to revisit it all through the project and update new risks that may come to light. A project that does not have ongoing assessment could result in situations that could ruin the project. Risk Management is Ongoing Canada Bridges Project Management Tools Risk Management - Module 3D 7

Questions Canada Bridges Project Management Tools Risk Management - Module 3D 8

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