A contingency plan is an alternative plan that will be used if a possible foreseen risk event becomes a reality. The contingency plan represents actions that will reduce or mitigate the negative impact of the risk event. A key distinction between a risk response and a contingency plan is that a response is part of…
Tag: Risk
Risk Management Framework: Risk Response Development
When a risk event is identified and assessed, a decision must be made concerning which response is appropriate for the specific event.This will be the third process inside an effective risk management framework and you need to take notice if it’s importance and impact on the project. Responses to risk can be classified as mitigating,…
Risk Management Framework: Risk Assessment
The Risk Identification Process produces a list of potential risks. Not all of these risks deserve attention. Some are trivial and can be ignored, while others pose serious threats to the welfare of the project. Managers have to develop methods for sifting through the list of risks, eliminating inconsequential or redundant ones and stratifying worthy…
Risk Management Framework
As stated in the Risk Management Guide Contents article, this is the first part of the series and I will dive directly into the subject without much introduction. This figure presents a graphic model of the risk management framework challenge. The chances of a risk event occurring (e.g., an error in time estimates, cost estimates,…
Risk Management Guide
You’ve got to go out on a limb sometimes because that’s where the fruit is. —-Will Rogers Every project manager understands risks are inherent in projects. No amount of planning can overcome risk, or the inability to control chance events. In the context of projects, risk is an uncertain event or condition that, if it…
Risk management framework: Change Control Management
A major element of the risk control process is change control management. Every detail of a project plan will not materialize as expected. Coping with and controlling project changes present a formidable challenge for most project managers. Changes come from many sources such as the project customer, owner, project manager, team members, and occurrence of…
Risk Management Framework: Opportunity Management
This article is part of the Risk Response Development process. This is considered to be a activity inside that process. To understand the full picture please read this article first and follow the links provided to navigate the post. For the sake of brevity, this series has focused on negative risks—what can go wrong on…