GMS 455 Chapter Notes - Chapter 10: Critical Path Method, Cost Contingency, Dic Entertainment
25 Dec 2015
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Risk: an uncertain event that, if occurs, will have a positive or negative impact on project objectives. Pms often focus on negatives and end up identifying more threats than opportunities. Known knowns : issues: we know they"ve happened, we know the impacts, need to resolve asap. Known unknowns : risks: things we can identify, know impacts, but don"t know if will happen, need to assign probability. Unknown unknowns : risks we can"t identify because it doesn"t fall within our experience. Therefore: need to identify as many risks as possible, plan for them, analyze likelihood. ** never make assumptions about org"s risk attitude on individual projects, risk attitudes could differ because portfolios often have high/med/low risk combinations of projects. ** every project needs a risk threshold combined risk score must be below it. Pm cares about project risk, which directly impacts projects. Sponsor cares about biz risk, which impacts value delivered to the org.
