1. Loss or damage

2. It is an uncertainty

3. Focus on the future

4. It exists objectively and does not depend on human will. The measurement of risk does not involve the subjective utility and time preference of the decision-maker.

5. Risk is relative. Although it exists objectively, it depends on the decision-making goals. Different decision-making goals for the same plan will bring different risks.

6. The difference between expectations and consequences is the possibility that actual consequences deviate from expected results.

Project risk is an uncertain event or condition that, if it occurs, will have a positive or negative impact on at least one project objective (such as time, cost, scope, or quality goals).

1. It can promote the scientific and rational decision-making of project implementation and reduce the risk level of decision-making.

2. It can provide a safe operating environment for the project organization.

3. Ensure the smooth realization of the business objectives of the project organization.

4. Promote the improvement of project organization and operating efficiency.

5. It is conducive to achieving the best combination of resource allocation and improving the efficiency of fund use in the whole society.

6. Conducive to social stability and development.

7. Risk sources, risk formation processes, risk potential destructive mechanisms, risk scope of influence and risk destructive power are complex. Single measures have limitations and cannot be completely effective. Various methods must be adopted comprehensively.

1. Risk management planning

2. Risk identification

3. Qualitative risk analysis

4. Quantitative risk analysis

5. Prepare response plan

6. Risk monitoring

Determine the methods, tools and data sources that can be used to implement project risk management.

Determine the leadership, support and composition of the risk management team for each activity in the risk management plan. Assign people to these roles and clarify their responsibilities.

Allocate resources and estimate the cost of risk management and incorporate this into the project cost baseline.

Determine the number and frequency of implementing the risk management process throughout the project life cycle and determine the risk management activities that should be included in the project schedule.

Risk classification provides the basis for ensuring systematic, consistent and effective risk identification and provides a framework for risk management.

The Risk Breakdown Structure (RBS) is one method that provides this framework. Benefits remind risk recognizers that risks arise for a variety of reasons.

Set out the content and format of the risk register and any other risk reporting required. Define how the results of the risk management process will be recorded, analyzed and communicated.

Describe how aspects of risk activities will be recorded for use in current projects or to meet future needs or the needs of a learning process. Indicate whether and how the risk management process will be audited.

Risk identification check chart prepared based on previous analog project information and other relevant information.

The advantages are fast and simple, but are certainly limited by project comparability.

Recording the basic information for managing risks is a way to follow up to the end.

It shows the organizational form of identifying risks and related information, which organizes risk information for people to query, track status, sort and generate reports.

1. All-inclusiveness

2. Systematic

3. Dynamic

4. Information dependence

5. Comprehensive

Project managers, project team members, risk management team, relevant domain experts outside the project team, customers, end users, project stakeholders and risk management experts.

1. Steps of analysis and identification

2. Specific methods

Enterprise environmental factors

organizational process assets

project scope statement

risk management plan

project management plan

risk register

Probabilistic analysis involves investigating the likelihood that each specific risk will occur.

Assessment aims to analyze the potential impact of risks on project objectives, both as negative impacts or threats and as positive impacts or opportunities.

Impact on the target The assessment level of the impact caused by the probability of occurrence of each risk on schedule once it occurs.

According to risk source

After the analysis is repeated, there may be some obvious trend in the analysis results of a specific risk, making it more urgent or important to take countermeasures or conduct further analysis.

Expected monetary value (EMV) is a statistical concept used to calculate the average outcome if a certain situation occurs or does not occur in the future (i.e., analysis under uncertainty).

Also known as the stochastic simulation method, the basic idea is to first establish a probability model or stochastic model so that its parameters are equal to the solution of the problem, then calculate the statistical characteristics of the required parameters through observation of the model or process, and finally give the solution to the desired problem. As an approximation, the accuracy of the solution can be expressed in terms of the standard error of the estimate.

The basic steps:

Project schedule management plan

Project cost management plan

A forecast of the potential schedule and cost outcomes of a project, setting out possible completion dates or project duration and costs and their level of confidence.

Changes to the project plan to eliminate risks or conditions, or to protect project objectives from being affected, or to relax requirements for some objectives that are threatened.

Eliminate the origin of risk

Seek to shift the consequences of the risk to another party, along with the responsibility for response.

Try to reduce the probability or consequences of adverse risk events to an acceptable threshold.

Eliminates the uncertainty associated with a specific positive risk by ensuring that the opportunity is certain to materialize.

Allocate risk responsibility to the three parties that can best obtain opportunities for the benefit of the project, including establishing risk-sharing partnerships, or forming teams, special purpose project companies, or cooperative joint ventures specifically for the purpose of opportunity management.

Work to change the “size” of opportunities by identifying and maximizing these positive risk drivers by increasing their probability or their positive impact.

The basic purpose is to control risks in a certain way to ensure that the project completes the project goals reliably and efficiently.

We should focus on the basic issues of project risks, formulate scientific feudal monitoring standards, adopt systematic management methods, establish an effective risk early warning system, make emergency plans, and implement efficient project risk monitoring.

Includes execution of risk management plans and risk management processes to respond to risk events.

Executing a risk management process means ensuring risk awareness is an ongoing activity performed entirely by the project team throughout the project.

Implementing a separate risk management plan includes monitoring risks according to defined milestones and developing risk decisions and risk mitigation strategies.

Contingency measures are used for unplanned risk events.

Classification

Risk early warning management refers to adopting a proactive or preventive management method for risks that may arise during the project management process. Once signs of risks are discovered during the monitoring process, corrective actions are taken promptly and early warning signals are issued to maximize the risk. Control the occurrence of adverse consequences.

Therefore, a good start for risk management is to establish an effective monitoring or early warning system to detect plan deviations in a timely manner so as to efficiently implement the project risk management process.

1. Risk reassessment

2. Risk audit

3. Variation and trend analysis

4. Technical performance measurement

5. Reserve analysis

6. Status review meeting

To sum up, the key to risk monitoring is to cultivate a keen awareness of risks, establish a scientific risk early warning system, and develop from fire-fighting risk monitoring to fire-fighting risk monitoring, from turning the tide to preventing it from happening before it happens.