Which should be managed first: a risk with medium impact and medium probability but that may occur soon or a risk with high impact and high probability but that may occur later? Saving Changes...
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Eric LamySenior Project Manager| Keurig Green MountainNewbury, Ma, United States
I'm not sure there's an absolute answer to this question. In general, I would want to determine whether the time required to address the medium impact risk would impact the ability to address the high impact risk in a measurable way. If not, address the medium risk first. If so, weigh the cost of accepting the medium risk against the potential cost incurred if the high impact risk is not addressed immediately. Saving Changes...
How do you know that a risk which is urgent would have a high, medium or low impact? You should not be having any pre-concieved ideas about the impact of a risk, it has to be qualitatively analysed. Question is whether urgent risks be evaluated first, whatever impact they may have. The answer is yes, first deal with urgent risks as it would be ridiculous to pend them to the time when they will not remain valid. Analysing all other risks come later than urgency.
I am amazed at your question that you have already assigned impact values to these risks even before you started the qualitative analysis. This is a very wrong way of dealing with risk analysis. Saving Changes...
Mazen AlRefaaiSr Engineer| Saudi Bin Ladin GroupMecca, Saudi Arabia
The risk with medium impact and medium probability but that may occur soon, and in parallel avoid the other risks to be come critical or more propable Saving Changes...
Francisco AbreuPortfolio Manager| Banco Central do BasilBrasilia, Df, Brazil
I’m considering the following scenario for your question: the risk’s identification and consequent quantitative and qualitative risk analysis were be done and the PM has a perception one determinate risk with both medium probability and impact may occur soon.
In this case I understand the risk matrix also was done and the high impact risk already has your alternative plans (when critical with additional Continued Business Plan when this is required) with your necessary tracking.
The PM/Project team has no choice in this case because this is a false question: the urgent risk MUST be handled because “urgent” and the risk with high impact MUST be monitored because “highly impactful”. Excuse my redundancies. . .
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Bruce Wilkinson MBA, PMPExpert Project Manager / Trustworthy Executive Assistant / Business Coach| goBRUCE Business ServicesCuenca, Azuay, Ecuador
Good Question, but I don’t think there’s enough information given to determine the answer. Were these risks anticipated before project implementation, and if not, why not? If they were anticipated, what risk responses were planned? Assuming these risks were unanticipated, then some deeper analysis may be in order. What is the cost in terms of money/time/personnel/political capital/etc. of management of each scenario? For example can the high impact/high probability risk be managed with insurance? If so, can it fit within the budget, be purchased, and then move on to the next risk? As is often the case, the variables are numerous, and the Project Manager, team, and possibly other stakeholders may have some judgement calls to make. Saving Changes...
Consider the time factor for this. On my point of view, the high impact risk has the priority, but, if the medium impact risk can be handled without impact the response planned for the high risk, then it can be solved first. Check your resources schedule and other schedule variants to determine what needs to be done first, if they can't be done in parallel. Saving Changes...
Carlos TessoreDr.| RManagementMontevideo, Montevideo, Uruguay
I think it is not possible to give an answer to this question, more information is needed (this is always true although sometimes it is not possible within the time framework of the situation). One tends to manage urgent risk first.
Before taking any decision it is necessary to know treatment cost estimates, human resources, and areas of impact.
It may be possible to manage both risk simoultaneously. Saving Changes...
I think we should we should decide based on the Risk Priority Number(RPN). Need to address the risk with High RPN and monitor the other Risks since Risk Priorities will change with Time. Saving Changes...
"More than any time in history mankind faces a crossroads. One path leads to despair and utter hopelessness, the other to total extinction. Let us pray that we have the wisdom to choose correctly."
