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Risk Management

Ioan Gheorghe DUBAR Master AES, Anul I

A risk is a combination of the probabilit !"##URRE$#E% of an e&ent, an' its conse(uence !SE)ERI*+,IM-A#*%

Risk Definition

Risk Management . E/ample

*he purpose of Risk Management is to i'entif potential problems before the occur, so that risk.han'ling acti&ities ma be planne' an' in&oke' as nee'e' across the life of the pro'uct or pro0ect to mitigate a'&erse impacts on achie&ing ob0ecti&es1 #MMI 2334 *he organi5ation shall prepare contingenc plans to satisf customer re(uirements in the e&ent of an emergenc such as utilit interruptions, labour shortages, ke e(uipment failure an' fiel' returns1 IS" *S 46787

Risk Management -urpose

Risk Management -lanning , Strateg 9 'eci'e ho: to approach, plan an' e/ecute the risk management acti&ities for a pro0ect , compan 1 Risk I'entification 9 'etermining :hich risks might affect the pro0ect an' 'ocumenting their characteristics1 ;ualitati&e Risk Anal sis 9 prioriti5ing risks for subse(uent further anal sis or action b assessing an' combining their probabilit of occurrence an' impact1 ;uantitati&e Risk Anal sis 9 numericall anal 5ing the effect on o&erall pro0ect ob0ecti&es of i'entifie' risks1 Risk Response -lanning 9 'e&eloping options an' actions to enhance opportunities, an' to re'uce threats to pro0ect ob0ecti&es1 Risk Monitoring an' #ontrol 9 tracking i'entifie' risks, monitoring resi'ual risks, i'entif ing ne: risks, e/ecuting risk response plans, an' e&aluating their effecti&eness throughout the pro0ect life c cle1

Risk Management Acti&ities

*he risk must be communicate' to the pro0ect team an' to the management

Risk Management Acti&ities

Uncertain re(uirements Unprece'ente' efforts . estimates una&ailable Infeasible 'esign Una&ailable technolog Unrealistic sche'ule estimates or allocation Ina'e(uate staffing an' skills #ost or fun'ing issues Uncertain or ina'e(uate subcontractor capabilit Uncertain or ina'e(uate &en'or capabilit <ack of e/perience in pro0ect management

* pical risks sources

*he scope of the risk management effort Metho's an' tools to be use' -ro0ect.specific sources of risks =o: these risks are to be organi5e', categori5e', compare', an' consoli'ate' -arameters, inclu'ing likelihoo', conse(uence, an' threshol's, for taking action on i'entifie' risks Risk mitigation techni(ues to be use', such as protot ping, simulation, alternati&e 'esigns, or e&olutionar 'e&elopment Definition of risk measures to monitor the status of the risks *ime inter&als for risk monitoring or reassessment

Risk Management Strateg

Risk I'entification

Risk Break'o:n Structure

-robabilit of occurrence of an e&ent > ? -robabilit that the e&ent , risk becomes a problem It can be e&aluate' :ithin @ le&els > le&el 4> lo:A e1g1 probabilit B @3C le&el 2> me'iumA e1g1 @3C D probabilit B 73C le&el @> highA e1g1 probabilit E 73C Se&erit !impact% of an e&ent> ? <e&el of conse(uences or impact on cost, time, function1 It can be e&aluate' :ithin @ le&els > < !lo:%, M !me'ium%, = !hi h%

Risk E&aluation

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