By Ray Myers, Jr., PMP We know that risks are unknown future events that may have positive or negative influence on our projects.  It is also important to identify and understand residual and secondary risks. Residual Risks Risks that remain after all of the response strategies have been implemented Secondary Risks Risks that are...
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By Ray Myers, Jr., PMP Risk management is an important project management function.  While we have tools to identify, assess, and manage risks, it’s sometimes difficult to understand and distinguish the relative importance between them. A risk probability/impact matrix provides a visual framework that may help decide which risks need your attention.  The matrix...
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By Ray Myers, Jr., PMP Risk events can have both negative and positive impacts on a project.  Most people think of risk in negative terms, however some events could have a positive impact on a project.  Consider how an unexpected drop in the cost of materials could reduce the overall cost of a project....
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By Ray Myers, Jr., PMP   If it can go wrong, it will.  -Murphy’s law   That’s not very encouraging, in fact, it’s downright discouraging.  We do the best we can as project managers to identify, assess, and manage potential projects risks, but is seems that we are forever looking over our shoulders, waiting...
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By Ray Myers, Jr., PMP  To assess the potential impacts of risk to a project, it is important to understand the 3 basic elements used in risk calculations: Impact, Probability and Expected Value. Impact Impact is the expected cost of the risk event in dollars.  The impact is simply an estimate of what the...
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By: Ray Myers, Jr., PMP The PMBOK project risk management processes are: Plan Risk Management The process of defining how to conduct risk management activities for a project Identify Risks The process of determining which risks may affect the project and documenting their characteristics Perform Qualitative Risk Analysis The process of prioritizing risks for...
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By: Ray Myers, Jr., PMP Risk responses fall into 4 categories: Avoid Eliminate the risk—usually by eliminating the causes Accept Accept the risk—but have a contingency plan in place Transfer Shift risk to a third party Insurance Sub-contractor Mitigate Reduce the likelihood of its occurrence About the Author: Ray Myers, Jr. is a PMP...
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