Risk Analysis

In this series of posts, I share what I’m learning as I make my way through Project Management Simplified, a Lynda.com course with management consultant, Chris Croft.

Step 8 of Croft’s The Twelve Steps to Manage a Project Successfully is to assess risks and prepare action plans.

Croft states the importance of asking “What could possibly go wrong?” He encourages brainstorming lists of risks with your team.

Once risks are identified, it’s time to quantify them.

Grade each risk on a 1-5 scale first for seriousness (How bad would it be if it happened?), then for likelihood (How likely is this bad thing to actually happen?)

Multiply the seriousness score by the likelihood score. For any that receive more than double digit scores, make a plan to make it less likely to happen and/or less serious if it does happen. This is your risk plan.

Keep the risk plan up-to-date as you work on the project. Some risks will disappear or dissipate. Others may become more likely.

What are the risks with your current project? How do you assess the seriousness and likelihood of a risk? Share your thoughts in the comments below.