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Topics: Risk Management
Risk Mititgation
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When I mitigate a risk, I understand that I decrease its probability of occurring , but also decreasing the impact is the tricky part, can someone elaborate on an example of decreasing impact either in scope, schedule, cost, quality ?

BR
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Because risk score/ranking is probability times impact, when you are able to decrease the probability, the impact is also reduced technically, however, to just think on reducing the impact itself, take for example, a risk to the schedule- you can mitigate several ways- fast track certain tasks, focus on critical path tasks, use schedule compression techniques..all of these will reduce both the probability and impact. Hope this helps.
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1 reply by Seif Eldin Soliman
May 23, 2017 4:11 PM
Seif Eldin Soliman
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Thank you
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Seif, for decreasing impact either in scope, schedule, cost, quality- just as an example- A risk is identified that one key stakeholder may not be available to review the requirement document. Now the next step is to discover the probability and what could be the impact on Schedule, Cost, and Scope?

If I brainstorm, I find that if Key stakeholders not available then it can impact the delivery of deliverables - The SLA can help you to understand the impact. There could include a clause that if you will delay beyond certain dates, there is penalty provision.

Now I knew the impact and based on the experience of stakeholders availability trend; I can analyze the probability.
After the assessment, I can plan a meeting with the stakeholder to communicate the expectations, and you may share the multiple calendar dates which stakeholder can choose. If one date miss, you have still some backup dates. It can reduce the impact on schedule and the probability of Scope clarity may get increased, however, it may increase the cost due to increased involvement with the stakeholder - Resource time and involvement may increases the cost.

Hope this helps
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1 reply by Seif Eldin Soliman
May 23, 2017 4:11 PM
Seif Eldin Soliman
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Thank you
Network:153



Seif, I think there is an issue in what type of risk are we discussing. Working across a variety of industries and projects, what you are asking can be interpreted through several lenses.

Several of the Oil and Gas projects I've worked on would mitigate risk by adding safety features to the project (i.e. a pressure release valve, or even safety rails). Rarely do those type of interventions decrease the iron triangle of PM, nor the quality; however these additions can reduce the impact if the risk occurs (i.e. the safety rail removes the risk of a person falling, and the pressure release valve dramatically reduces the impact of an over-pressurized system catastrophically failing vs a controlled release into a safe zone).

In software projects, perhaps it is easier to see by using cost-effective developers while maintaining a senior developer to ensure best practices and code viability from the lower cost developers. That would be in relation to a risk of cost overrun, or the risk that "cost-effective" may also mean low quality. The expense of a senior developer for the review cycle is probably less than an entire development team on site,

Perhaps if you could be more specific with the circumstances you are looking for, more people would be able to help with specific examples? Best of luck!
Network:236



May 23, 2017 2:51 AM
Replying to Deepa Kalangi
...
Because risk score/ranking is probability times impact, when you are able to decrease the probability, the impact is also reduced technically, however, to just think on reducing the impact itself, take for example, a risk to the schedule- you can mitigate several ways- fast track certain tasks, focus on critical path tasks, use schedule compression techniques..all of these will reduce both the probability and impact. Hope this helps.
Thank you
Network:236



May 23, 2017 9:28 AM
Replying to Seema Sonkiya
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Seif, for decreasing impact either in scope, schedule, cost, quality- just as an example- A risk is identified that one key stakeholder may not be available to review the requirement document. Now the next step is to discover the probability and what could be the impact on Schedule, Cost, and Scope?

If I brainstorm, I find that if Key stakeholders not available then it can impact the delivery of deliverables - The SLA can help you to understand the impact. There could include a clause that if you will delay beyond certain dates, there is penalty provision.

Now I knew the impact and based on the experience of stakeholders availability trend; I can analyze the probability.
After the assessment, I can plan a meeting with the stakeholder to communicate the expectations, and you may share the multiple calendar dates which stakeholder can choose. If one date miss, you have still some backup dates. It can reduce the impact on schedule and the probability of Scope clarity may get increased, however, it may increase the cost due to increased involvement with the stakeholder - Resource time and involvement may increases the cost.

Hope this helps
Thank you
Network:236



Mathew,

My question specifically if forexample you have a machine with no spare parts and you need it through a process , if you respond to have the spare parts to be bough in this case do we decrease the probability of the output of the machine getting damage only or do we decrease the impact this has on the project as well in terms of time, cost and schedule

from my opinion both , what do you think ?
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1 reply by Diogo Simoes
May 26, 2017 6:19 PM
Diogo Simoes
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Hi Seif (and Mathew),

As an example if you don't have spare parts the impact is having the machine broken and stopped for one week to get parts and repairing it.
If you have spare parts although the machine is broken you may be able to repair it in one day.
So, less stoppage time- less impact in schedule (at least!)
Network:153



Seif, I think there is a series of questions that should be answered to properly evaluate the impact. Is the machine's output considered part of the critical path? Is there any float in the schedule related to the machine? How long will it take to get the various replacement parts? What are the most common points of failure for the machine? How expensive are the various parts? Is there any redundancy already built into the system

These answers may dictate the need for a separate fully operational machine on standby, or it may indicate that you only need to invest in the bare minimum spare parts or none at all. For an offshore drilling platform, we designed it around 4 generators, with 3 in constant operation, but the fourth was there to pick-up extra load during high volume activities, or to act as a replacement in case one of the other three generators went down or was taken out for maintenance. In another case, the failure rate of a router in an IT network was so low, and replacement routers were literally available within a 20- minute round trip drive that we decided to accept the risk rather than have replacement parts on hand.

That being said, generally, I would apply the benefits to both the reduction in likely downtime of the machine/item and the impact on the project.

I hope this helps.
Network:560



I agree with Mathew's last comments. We have a manufacturing facility in a hurricane zone so having a variety of mitigation measures in place can reduce the impact, while the probability is at some point there will be a hurricane, the severity of the hit will determine what if any of the mitigations needs to be used. These measures can include UPS system, raw materials and transportation stored off site to ensure a continuous supply and a plan for working with a minimum number of staff for a short period of time.
Network:1290



Risk mitigation is working on the exposure and the likelihood. So, both parts are covering.
Network:281



May 23, 2017 4:12 PM
Replying to Seif Eldin Soliman
...
Mathew,

My question specifically if forexample you have a machine with no spare parts and you need it through a process , if you respond to have the spare parts to be bough in this case do we decrease the probability of the output of the machine getting damage only or do we decrease the impact this has on the project as well in terms of time, cost and schedule

from my opinion both , what do you think ?
Hi Seif (and Mathew),

As an example if you don't have spare parts the impact is having the machine broken and stopped for one week to get parts and repairing it.
If you have spare parts although the machine is broken you may be able to repair it in one day.
So, less stoppage time- less impact in schedule (at least!)
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