2 - Assess

  • Assess all risks, both threats and opportunities, in terms of their likelihood of happening and the potential impact to the project.  Also consider the impact to any dependencies relating to your project.

    Estimate the likelihood of each risk in ratings of 1 – 5:  1 = Rare and 5 = Almost Certain. 

    Estimate the impact on time, cost and quality of each risk in ratings of 1 – 5:  1 = Insignificant and 5 = Catastrophic

  • What to do

    • PM assign risk UID, column A, and mark the risk as 'Open' in column Q
    • using the Risk Logic matrix provided conduct initial risk analysis, completing columns F,G & I.
    • Propose a suitable risk owner based on who might be best placed to monitor the likelihood of the risk transpiring
    • Go back to your board for sign-off of this analysis and to get input to appropriate risk responses. You may wish to complete some of STEP 3 to make some proposals on risk response or to do this verbally at the board
    • Enter the date that the board considers the risk in column R

    Tips on how to do it

    • The Project Manager should conduct the initial risk analysis based on the information elicited during the risk capture session.
    • Risk analysis should always be done by somebody independent of the person who raised the risk. The same circumstances that made the risk raiser the one most aware of the risk can also mean that they have a perceptual bias about the likelihood or impact of that risk, or that they are particularly risk averse in that area. Their views and opinion of it must be given full consideration as they may also have expertise that makes them better placed to assess the risk.
    • The Project Executive/Sponsor should be asked to review the initial risk analysis prior to submission to the Project Board for full discussion, adjustment and sign-off of it as an accurate assessment.