In my years of experience, I've encountered a wide range of approaches to assessing risks in project management. While some organizations rely on overcomplicated tools, intricate heat maps, or extensive Excel spreadsheets, I've found that simplicity often yields the best results.
So, I'm wondering, does it depends on the industry, the role (project vs program vs portfolio), the years of experience of the flexibility of the industry ...What tools do you use for assessing the impact and likelihood of identified risks? Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Mayte, for the most part, I don't believe it heavily depends on the industry and role but it is more dependent on the project's unique circumstances. Among many things we do to assess risks on our consturction projects, in terms of tools and techniques, we normally use Risk Matrix (for probability and impact), SWOT Analysis, and Sensitivity Analysis (for quantitiative risk analysis). Saving Changes...
Although there are some instances where very rigorous analysis is required, such as potential for catastrophic failure resulting in loss of life, I agree that usually simpler is better, even in some very complex fields. One scientist would half-joke that you can always tell the optics designer, because they will give you an uncertainty to 9 decimal places.
I have used risk matrices extensively and often find that people over-complicate even that simple method. On a scale of 1-5, people can argue ad nauseam whether something is a 3 or 4 but if we all sit down and discuss it as a group, we realize we are all pretty close on our relative rankings. In my mind, the most value is gained by having the discussions themselves and sharing a common understanding of the risk, than whether we ultimately pick 4 or worse yet, come up with a new 3.5 level to placate the offended. Saving Changes...
In the absence of good historical data, most of the clients I've worked with default to subjective evaluations of these which is subject to bias. However, what is really important is not how we evaluate them but what risk owners choose to do with that information - if it is properly presented with reasonable risk responses and the key stakeholders have appropriate risk appetites, then the risk management process works.
Kiron Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Today, you can use generative AI to work on that. If you make the right prompts (answers) in the right format you will find all the information needed to calculate it and you will find the rates itself in some cases. But what I used from years for all related risk management tasks is the approach taken by the CMU SEI. Saving Changes...
Mayte, In my experience, it depends on the complexity and size of the project. Usually, we go with excel sheets but for large complex projects/programmes/portofolio we use dedicated risk management tool that enables us to keep an eye on how risk/s are evolving. It also helps in escalting relevant risks at right management level. I hope it helps Saving Changes...
I use a personalized Excel template where I configure scales for evaluation of impact according to percentual increase or decrease of cost and time; and qualitative considerations of minor to major affectations to scope, quality, and client satisfaction.
Probability scales are also personalized, with defined punctuations from very low to very high priority.
With the combination of probability and impact, a Risk Matrix is stated, that allows a qualitative classification of Critic, High, Moderate, and Low Risks. Saving Changes...
Randall AndersonOwner| Great Ocean SoftwareWinters, Ca, United States
When writing Project EMC2, I tried to keep this really simple with just two check boxes, one for High Probability and one for High Impact. The combination of these two choices determines the "Severity Level" of the risk. The risk log is color-coded and sortable by Severity Level, so it's very easy to see which ones warrant the most attention. https://www.projectemc2.com Saving Changes...
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