You Met With Your Department Manager And Some Stakeholders
You Met With Your Department Manager A Few Of The Stakeholders And T
You met with your department manager, a few of the stakeholders, and the sponsor last week to review the list of possible risks. They accepted most of your risks and agreed that the next step was the assessment. There was some confusion, however, over how that step should be completed. Apparently, a prior project manager did a poor job with risk assessment and felt that it was an unnecessary activity. This resulted in the project encountering several risks and always being in fire-fighting mode.
Several of the stakeholders (who were impacted most by this mode) want a much more formal approach taken to risk assessment (as does the CEO). Assignment Guidelines: You have scheduled a risk assessment meeting for later this week. Create a pre-read document for the meeting participants that will walk them through how you will run the meeting and what they should prepare in advance. In your 2–3 page document, be sure to address the following: Who will you involve? (number of people, roles, and project responsibilities) How will you manage the group? What is your process for assessing the risks?
What techniques will you use? Where will you start? In preparation for the meeting and to help you focus on the upcoming task, review your list of risks. Practice the various techniques you will use by assessing at least 15 of your risks. Create a grid for this activity.
Use a qualitative method to identify the high-priority and low-priority risks. Provide a rationale for your responses. Then, using a semi-quantitative method, create a risk score and probability/impact matrix for the remaining risks. The columns should be organized as follows: Risk event, Probability, Rationale for probability, Impact, Rationale for impact, Next steps (describe what you need to do with this risk event next: nothing, further analysis, or determine actions).
A 3–4 page typed pre-read document
A grid assessing the risks you had outlined in Unit 1 formatted to the requirements listed above
Paper For Above instruction
Introduction
Effective risk assessment is crucial to the successful management of projects. Recognizing the prior shortcomings in risk management practices, it is essential for this upcoming meeting to be structured systematically and collaboratively. The goal is to foster a shared understanding among stakeholders, prioritize risks accurately, and establish clear next steps for mitigation. This pre-read document aims to outline how the risk assessment meeting will be conducted, who will be involved, and the methods and tools that will be employed to evaluate the risks comprehensively.
Participants and Roles
Participants will include key stakeholders representing different functions relevant to the project, the project sponsor, project team members, and risk management specialists. Ideally, the team should consist of 8-12 members, including the project manager, project sponsor, key department heads, subject matter experts, and risk analysts. Each participant will bring their unique insights regarding potential risks tied to their areas of expertise, enabling a holistic assessment. Clearly defining roles, such as facilitator, recorder, and risk assessor, will ensure efficiency during the session.
Managing the Group
The risk assessment meeting will be facilitated using a structured approach. The facilitator will establish ground rules emphasizing open dialogue, equal participation, and constructive critique. To manage group dynamics, techniques such as round-robin sharing and breakout groups may be employed. Visual aids like risk matrices and collaborative tools (e.g., digital whiteboards) will be leveraged to encourage engagement. Time management will be strict, with allocated durations for each segment—initial risk review, qualitative assessment, and semi-quantitative analysis. The facilitator will ensure that dominant voices do not overshadow others and that every participant's input is considered equally.
Risk Assessment Process
The process will follow a phased approach comprising identification, qualitative prioritization, and semi-quantitative scoring:
- Risk Identification: Review of the existing risk list to ensure completeness and clarity. Participants will provide insights and additional risks based on their perspectives.
- Qualitative Assessment: Use of a risk matrix for initial prioritization based on perceived severity (impact) and likelihood (probability). Risks will be classified as high, medium, or low priority based on collective judgment. This aids in focusing on the most critical risks for further analysis.
- Semi-Quantitative Scoring: For the remaining risks, detailed scoring will be applied. Each risk will be assigned a probability and impact score, with rationales documented. Using a risk score (Probability x Impact), risks will be plotted on a risk matrix to visualize their severity.
Techniques for Risk Assessment
The meeting will leverage several risk assessment techniques:
- Risk Breakdown Structure (RBS): To organize risks hierarchically, enabling easier analysis.
- Likelihood and Impact Matrices: To systematically evaluate risks based on their probability of occurrence and potential impact.
- Delphi Technique: Anonymously gathering expert opinions to mitigate bias.
- SWOT Analysis: To identify internal and external factors influencing risk levels.
To prepare for the session, participants are encouraged to review the existing risk list and consider additional risks that might have been overlooked. Practicing the assessment method on at least 15 risks from the list will stimulate thoughtful discussions and ensure familiarity with tools.
Pre-Meeting Activity: Risk Assessment Practice
Prior to the meeting, assess 15 risks from the existing list using the qualitative method. Classify each as high, medium, or low priority based on likelihood and impact. Document the rationale for each classification to facilitate transparent discussion.
| Risk Event | Likelihood | Rationale for Likelihood | Impact | Rationale for Impact | Next Steps |
|---|---|---|---|---|---|
| Supply Chain Delay | Medium | Global supply chains experiencing disruptions | High | Delay would significantly postpone project milestones | Further analysis required |
| Technical Failure | Low | Robust testing procedures in place | Medium | Potential for minor system issues affecting deliverables | Monitor closely |
Semi-Quantitative Risk Scoring and Matrix
For the remaining risks, assign numerical scores for probability and impact based on defined scales (e.g., 1-5). Calculate a risk score, then plot risks on a probability-impact matrix to prioritize mitigation strategies.
Sample Risk Score Calculations:
| Risk Event | Probability | Rationale for Probability | Impact | Rationale for Impact | Next Steps |
|---|---|---|---|---|---|
| Data Breach | 4 | High dependency on digital systems, threat of cyber attack | 5 | Severe data loss and compliance penalties | Determine actions and implement safeguards |
| Key Staff Turnover | 3 | Moderate employee turnover rate anticipated | 4 | Could disrupt project continuity | Plan retention strategies; monitor ongoing risk |
Conclusion
This pre-read provides a structured outline for conducting a comprehensive risk assessment meeting. By involving a diverse group of stakeholders, employing qualitative and semi-quantitative techniques, and preparing assessment grids beforehand, the project team enhances its capacity to identify, prioritize, and manage risks effectively. This approach aims to shift the project away from reactive fire-fighting and toward strategic risk mitigation, ultimately supporting project success and stakeholder confidence.
References
- Hillson, D. (2017). Effective Opportunity Management for Projects: Exploiting Positive Risk. CRC Press.
- PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Project Management Institute.
- Chapman, C., & Ward, S. (2011). How to Manage Project Risks and Opportunities. Wiley.
- ISO 31000:2018. (2018). Risk Management — Guidelines. International Organization for Standardization.
- Smit, A. J., & Engels, R. (2016). Risk assessment techniques in project management. Journal of Risk Research, 19(4), 511–529.
- 邬善忠 (Wu Shanzhong). (2018). Modern risk management: Concepts and techniques. Journal of Financial Risk Management, 7(2), 47–59.
- Hillson, D. (2002). Extending the risk process to manage opportunities. International Journal of Project Management, 20(3), 235–240.
- Kloppenborg, T. J. (2019). Analyzing Risks for Project Success. Project Management Journal, 50(2), 124–136.
- AS/NZS ISO 31000:2018. (2018). Risk Management — Guidelines (ISO 31000:2018).
- Hopkin, P. (2018). Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management. Kogan Page.