What other questions would you ask when Studying Project Risk Management?

Some risks have an effect on schedule hence Risk Management should feed into the Schedule Management.
Change in schedule may give rise to new risks, therefore the two roles need to interface well in a project. This is part of the integration knowledge area

The value of a risk is a function of the potential loss that the company or the project will suffer should the risk materialize. In some cases this value is tempered down by its probability.

Demetrius, yes that a common question... good one...

You can also add it here in the blog...
http://www.projectmanagement.com/blog-post...Risk-Management

A risk is an event that has not occurred yet but has a probability of occurring and may have an effect on the project if it occurs. A suitable mitigation plan must be devised and provision be allowed to deal with identified risk. Mitigation plan may be in one or more of the following steps applied in the given order. 1. Terminate, 2. Transfer, 3. Treat, 4. Tolerate


An issue is an event or risk that has already materialized or occurred. An issue need to be analysed/ evaluated for the extend of effect and the devised mitigation plan has to be applied as planned or amended to suit if the effects are different from the anticipated.

A risk is an event that has not occurred yet but has a probability of occurring and may have an effect on the project if it occurs. A suitable mitigation plan must be devised and provision be allowed to deal with identified risk. Mitigation plan may be in one or more of the following steps applied in the given order. 1. Terminate, 2. Transfer, 3. Treat, 4. Tolerate


An issue is an event or risk that has already materialized or occurred. An issue need to be analysed/ evaluated for the extend of effect and the devised mitigation plan has to be applied as planned or amended to suit if the effects are different from the anticipated.

Radhika - yes, this is a great question...

Contingency plan is a mitigation plan but not vise-versa.
When a risk is identified, and mitigation plans are being devised, one of the mitigation plans may be to allow or provide for contingency to deal with the risk if it materialise. This falls under risk control or treatment and risk tolerance. Contingency plan is devised but not actioned until the risk becomes an issue. Contingency can be provided in the form of extra resources, extra time or float, etc. On the other side, mitigation plans may be the elimination or transfer of risk source or activity.

Risk management includes the treatment of the risk causes or the treatment of the risk item itself.
Risk treatment is undertaken in the following order depending on the risk item and the Project or client's tolerance on that particular risk.
1. Terminate
This applies to risk items that are too high (fatal flaw) for the project or company and can not be feasibly transferred or reduced to a manageable or acceptable level. This means the activity that introduces the risk must be terminated. Example: If the project wanted to mine a small deposit of mineral in a geologically unstable ground and it is unsafe to employ conventional methods yet too expensive for any alternative methods.
2. Transfer
This is a second level of addressing risk and applies to risk items that can be transferred to different safe location, experts or time. Example: If a project wanted to perform a welding operation in a mine with methane gas. The hot work will be transferred to surface where it is safe to perform welding.
3. Treat
This is sometimes referred to "Risk Engineering". It involves devising and deployment of means and procedures to completely eliminate or reduce the probability or severity of the risk to an acceptable level. Example: It is unsafe for people work in a noisy environment, hence machinery like compressors are fitted with silensors to engineer out the noise risk.
4. Tolerate
This is the lowest level of managing risk. It involves putting in place management processes and procedures to live with the risk. This is generally applied to risk items that have low severity or impact to the project or company if it occurs. Example: People put on Personal Protective Equipment like hand cloves when they handle sharp or hot objects.