Successful Project Management: Chapter 8

Identifying Risks
-Brainstorm sources of risks
-Establish categories for risks and evaluate
-Use historical information
-Progressively elaborate and identify new risks as more information becomes available
Assessing Risks
-Determine the likelihood the risk event will occur
-Evaluate degree of impact on the project objective
-Prioritize: Likelihood of occurrence and degree of impact, Position relative to the critical path
Plan Risk Responses
-Set of actions: Prevent or reduce the likelihood of occurrence or the impact of a risk, Implement if the risk event occurs
-Establishes a trigger point for implementing an action
-Assigns responsibility for implementation
-Avoid, mitigate, or accept the risk
-Include a contingency fund to cover implementation
Managing Risks for IS Development
-Technological risk
-Human risk
-Usability risk
-Project team risk
-Project risk
-Organizational risk
-Strategic and political risk
Risks in Adopting New Technologies
-Technological risks: Earlier adopter risk, Obsolescence
-Operations risks: New technology causes disruptions, Delays and errors during adoption process
-Organizational risks: May lack organizational culture to support technological adoption, May abandon due to short-term failure
-Environmental or market risks: Changes in market or environment may render investment worthless, Market risks include: Currency exchange rate fluctuations, Interest rate fluctuations
Critical Success Factors
-Identify risks and their potential impacts before the project starts
-Involve the project team or experts in assessing risks
-Assign high priority to managing risks that have a high likelihood of occurrence and a high potential impact on the project outcome
-Develop response plans for addressing high priority risks