Update 25-Aug-2003

Project Risk Management: Project Risk Management Activities

Figure 1.

To overview the Activities during the Project Risk Management it is convenient to use Simplified V-form of the Life Cycle. As you may see on Fig.1, if we will use above mentioned Life Cycle representation, we may easily see cross-verification processes not only between neighbor stages of the Life Cycle, but also between inter dependant phases.

For example, System Test allow us to verify not only Integration Test phase, but also Requirements Definition (very beginning of the project). Integration Test have cross verification not only with its pre- and successors, but with Top Level Design and Specification, and so on.

This technique allows increase amount and quality of cross-verifications, and therefore, reduces Risks of the whole Project.

Project Risk Management: Project Risk Management Process

Figure 2.

Project Risk Management Processes are shown on Fig. 2. Actually, it is a quite simple sequence. You need to estimate, analyze, and decrease every impact for every cause of every Risk.

When you are finished with these processes, you will see if Product Safety is adequate.

Project Risk Management: Risk Estimation List

Figure 3.

Risk Estimation List is shown on Fig. 3. It shows definitions and descriptions of the Projects Risks grouped into 12 groups.

This is a descriptive slide.

Project Risk Management: Risk Estimation Matrix

Figure 4.

A Risk Estimation Matrix, shown on Fig. 4, is used to see the overall risk of the Project.

To estimate all the Risks of the system, we will use R-A-G Matrix (shown on Fig.4) which will allow us to understand not only Risks of the Projects but also the direction of the Risks Development.

As a result, our estimation of the systems will be much better than if we will use so-called "magic quadrant", (will not shown) which is linear simplified implementation of R-A-G diagram (Fig.4).