From the course: Project Management Foundations

Identify risks

From the course: Project Management Foundations

Identify risks

- You've already put a lot of planning into your project. The next step is to plan for what could go wrong because you know something will. Instead of asking for an adrenaline rush, why not identify what could go wrong so you can plan ahead for dealing with issues. Let's start with risks you're aware of. They're called known unknowns, things like weather delays or resources being unavailable. Let's look at some examples of things that can introduce risk to projects. Technology. It might cost more than you expect, not work the way it's supposed to or not show up when you need it. A widely dispersed project team can increase risk. You could have delays due to time zone differences, miscommunication from different languages or cultures, or lack of teamwork because remote team members haven't developed effective working relationships. Lack of detail, like specifics on deliverables, due dates or who will work on your project can lead to all sorts of problems. Limited options, like people with rare skills increase risk because you don't have easy alternatives to apply if a problem arises. Work with everyone on your team to identify risks. You can ask experts for different parts of the project about the risks they foresee. Ask key people on the project what they think and ask other project managers about risks from similar projects. Fill out a risk information form for each risk you identify. Include as much detail as you can. Which objectives are in danger? What events can cause the risk to occur? What the consequences are, who owns the risk, and so on. Up until now, we've talked about risks we can anticipate but what do you do about the risks you can't predict? These are called unknown unknowns. They come from situations that are so unlikely that they never occur to you. The 9/11 attack was an event that no one thought possible. You're unlikely to have to deal with such a significant unknown risk, but you will encounter unknown risks at some point, and you need to plan for them. How? By setting aside contingency funds and time for dealing with them. The question is, how much should you set aside? Many companies use a percentage of the project budget like 15%, but the percentage is typically based on past experience. To minimize the effect of risks, you first have to identify the risks that your project faces. Try to identify several risks that the hospital scheduling project might face. For an extra challenge, use the risk information form in the exercise files to document the risks.

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