Let me start with the definition of the word ‘category’ cat·e·go·ry(noun): any general or comprehensive division; a class. —Synonyms: group, grouping, type The main goal of risk management is to avoid unpleasant surprises. This requires comprehensive list of identified risks. Risk categories are specific way to group risks under a common area which provides a structured &

In our school days, we studied about probability of occurrence of an event like probability of getting 2 when rolling a dice once = 1/6. I hated probability in my college days as lot of derivations and assumptions need to be done. When I studied the same in Project Risk Management, I understood the real

Risk management is a cyclic process. But for a project, it cannot go on for ever. Right? Project manager, his team & management has to find a stop point on further assessment & responses. Those risks that remain even after developing responses to the project’s primary (or original) risks are called as Residual Risks. Impact of

You came up with initial identification, analysis and responses of project risks. But you found one new risk arises because of implementing already planned response for a risk. What to do with the new risk? The new risk is called as ‘Secondary risk’. Secondary risks should also follow the same process like qualified, quantified and responses

General risk response strategies.

We can divide risks into following three broad category based on their identification & response planning: 1. Known - Responded (with avoidance, mitigation, transference) 2. Known - Not responded (or accepted) 3. Unknown (here also default strategy is acceptance) Eliminating maximum number of risks is the main objective. But not all can be eliminated or responses would be

Managing risks in project is imperative for its success. We need to have a process (or processes) in place for risk management to be effective. Here are the five steps project manager can use for risk management: 1. Identify Risks - Identify risks that affect the project (positively or negatively) and documenting their characteristics 2. Assess &

The New York Times reports today that Bank of America is still firmly committed to acquiring crippled mortgage giant Countrywide Financial.  After reading the article, we’re convinced that the deal isn’t going to happen. According to the Times, Bank of America’s chief executive Kenneth D. Lewis “confirmed his commitment to the Countrywide buyout, which is expected to close by

Let me start off by saying I work with a great team of individuals. We work in the advertising field and have to deal with a lot of pressure to perform under deadlines. However, as the lead on the team, I have become a little worried about the professionalism of the team. Things can get

I have a confessions to make.  I stick to the speed limit and in over 25 years of driving cars and riding motorcycles, I have never had a speeding ticket.  That may make me sound like a grumpy old fart but I can’t see how it can be worth putting yourself and others at risk for little return. A