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Planning Phase Risks

Planning Phase Risks

Description:

This lesson provides an overview of types of project risks.

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Tutorial


What's Covered

In this lesson, we'll discuss planning phase risks, which are risks that can occur during the planning phase of a project. Specifically, the following will be discussed:

  1. Categories of Risk
  2. Schedule Risk
  3. Resource Risk
  4. Deliverable Risk
  5. Assumption Risk

1. CATEGORIES OF RISK

It's the project manager's responsibility to review all the risks, and then determine which will be added to the risk registry. There are four major categories of risks:

  • Schedule risks
  • Resource risks
  • Deliverable risks
  • Assumption risks

These categories should help a project manager discover risks that might impact the project.


2. SCHEDULE RISK

Schedule risks are issues with the actual development of the project schedule, such as risks associated with estimates or dependencies, or issues that could occur along the critical path.

ExampleA manager of a project with the goal of creating a new shopping website for an organization will have tasks associated with payment processing.

If the organization has never done payment processing online before, then the time estimates for those tasks will have risks due to the lack of experience.

Here is what the risk would look like in the risk registry. Notice that it is likely that this risk will occur due to the organization’s inexperience.

Remember that although almost any risk could impact the schedule, schedule risks refer only to those that affect the schedule’s development.


3. RESOURCE RISK

Resource risks are any issues that might arise with people or any other resource needed to complete the project.

ExampleCreating a shopping website will require experienced programmers, and there could be a risk that those programmers will not be available when needed.

Here is how this risk should be documented:

Term to Know

    • Resource Risks
    • Risks associated with people or equipment and materials that are involved in a project.

4. DELIVERABLE RISK

Deliverable risks are risks with the actual deliverables. These involve possibilities such as the deliverables not performing as expected, or an organization having issues creating a deliverable with which it has little experience.

ExampleA Shopping website project will need reliable backup systems as a deliverable, and there's a risk that the equipment chosen fails to operate as needed.

Here is how this risk should be documented:

Term to Know

    • Deliverable Risks
    • Risks that are associated with the successful completion of project deliverables.

5. ASSUMPTION RISK

Assumption risks are risks involving the assumptions that are made about a project during the creation of a project scope.

The shopping project assumes that PayFast will be the method used for all payment processing.

If a decision is made to change from that system, there will be an impact to the project in terms schedule and cost.

There might be a low probability that this change occurs, but there will be a medium impact if it does; therefore, this risk should be documented as shown below.

The project manager should review the project scope, schedule, and plan to discover any risks, such as the ones we just discussed.

Anything that might impact the time, cost, or scope of a project should be considered. Remember that any impact on one of those variables will likely impact the other two.

Term to Know

    • Assumption Risks
    • Risks associated with identified assumptions required for project success.

Summary

In this lesson, you learned about the categories of risk: schedule risks, resource risks, deliverable risks, and assumption risks. Schedule risks are risks associated with estimates or dependencies. Resource risk will likely involve people working on the project. Deliverable risk may include the product not performing up to expectations or standards. Assumption risks happen at the creation of a project scope.

Good luck!

Source: This work is adapted from sophia author jeff carroll.

TERMS TO KNOW
  • Assumption Risks

    Risks associated with identified assumptions required for project success.

  • Deliverable Risks

    Risks that are associated with the successful completion of project deliverables.

  • Resource Risks

    Risks associated with people or equipment and materials that are involved in a project.