There are some factors that need to be taken into account when identifying risks in a project. The risk is called some future event, which results in a change in the environment. This is associated with an estimation loss, probability that the event occurs, which can be estimated and the project manager's choice of what to do if there is something to reduce the risk and reduce the loss
During the project design, the project team reviews and updates risk management, which usually ends in the development of Business Case. The risk assessment gives formalized subjective assessment of the likelihood of success of the project. Risk assessment has a clear impact on leadership style, team structure, methodology usage, system development strategies, and most importantly, the business decision to approve a project.
Simply, the greater the project's risk, the more likely it is that estimates, schedules, and design will be defective and the project will "fall outside". The risk of the project can be established by taking into account the following criteria:
- What are the risks?
- What is the likelihood of loss?
- How Much is the Loss?
- How can losses be made when worst?
- How can losses be reduced or eliminated?
- Can Alternatives Have Other Risks?
Business decision examines how the expected loss can be compared to the loss of all or part of the loss and then take the appropriate steps.
It is mandatory that during the system development process, and especially during project management, the project leader considers these project risk criteria using a formal questionnaire and develops a risk reduction list. If the project leader considers that any combination of these factors is significant and contributes to the risk of the project, we encourage you to take the following steps into account:
- Reducing Project Complexity
- Documenting Complexity Areas of Project Plan and Providing Additional Time / Resources
- Create an official risk memorandum detailing high-level factors identifying possible impacts and measures / options available to reduce the impact or reduce the risk factor
It is imperative that project risk management proactive process. For example, before the start of the entire development cycle, the project manager must negotiate with the Steering Committee, key stakeholders and sponsors to minimize high risk factors.
In order to increase the success of the project, the project team should create a program that identifies the risks and steps to mitigate the risk. Managing and minimizing project risks is the responsibility of all project participants
Source by sbobet