Elemental Projects 2016 PMGT5871 Project Process Planning Control Topic 6 Topic

Elemental projects 2016 pmgt5871 project process

This preview shows page 12 - 16 out of 27 pages.

© Elemental Projects 2016
Image of page 12

Subscribe to view the full document.

PMGT5871 Project Process Planning & Control Topic 6 Topic 6 13 The University of Sydney Page 25 Risk identification techniques (continued) Risk Categories can be represented as a Risk Breakdown Structure (RBS) The University of Sydney Page 26 Qualitative risk assessment Is based on judgements of likelihood (high/med/low) and impact (high/med/low) These judgements are applied to a Risk Matrix to determine the risk rating Risks can then be prioritised for further assessment and/or treatment © Elemental Projects 2016
Image of page 13
PMGT5871 Project Process Planning & Control Topic 6 Topic 6 14 The University of Sydney Page 27 Risk Register Typically documents: Risk event description Impact description – what would happen if it came true? Qualitative risk assessment Sometimes quantitative (usually financial) assessment Treatment strategies and their status Responsibility, budgets and timeframes for managing individual risks Residual risk assessment Issue action plan & trigger The University of Sydney Page 28 Quantitative risk assessment Determines the impact of risks on project objectives using numerical methods Involves probabilistic and statistical analysis of uncertainty Probabilistic analysis involves creating a model of the real world using random variables and observing the model outcomes to validate fit with real life data Statistical analysis involves observing real life outcomes and attempting to construct an underlying probabilistic model Used to establish Risk Reserves (budgets to control specific risks) that are additional to conventional contingency Replaces qualitative judgements with numbers: Judgements of likelihood % probability Judgements of impact $ impact Percentage Definition 90% Almost certain 70% Likely 50% Possible 30% Unlikely 10% Rare
Image of page 14

Subscribe to view the full document.

PMGT5871 Project Process Planning & Control Topic 6 Topic 6 15 The University of Sydney Page 29 Impact classification Qualitative Risk Descriptor Quantitative Risk Value (0 – 1) Evaluation Criteria Financial, Commercial, Legal or Compliance Customer Relationship, Image and Reputation Business Continuity and Infrastructure People, Environment and the Community Insignificant 0.0 – 0.19 < $50K loss or damages Minor customer complaints addressed through standard process Brief (<2hrs) service interruption during non- critical business period, no data loss Usual staff turnover Minor 0.2 – 0.49 $50K - $100K loss or damages Limited negative customer feedback Brief (<2hrs) service interruption during critical business period, no data loss Dispute with individual staff member, higher than usual staff turnover Moderate 0.5 – 0.69 $100K - $500K loss or damages A number of unresolved customer complaints, continued negative customer feedback Moderate (<8hrs) service interruption, some non- critical data loss On-going significant staff turnover, departure of key, high profile staff Major 0.7 – 0.89 $500K - $1M loss or damages Loss of key account, series of unfavourable press articles Major (24hrs – 48hrs)
Image of page 15
Image of page 16
  • One '14

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes