internal risk

external risks

Conduct a one-by-one examination of the project's strengths, weaknesses, opportunities, and threats to identify risks

Dig out various possible causes of a problem and develop preventive measures

Such as: industry standards

Create an interview environment of trust and confidentiality and encourage honest and unbiased opinions from the other party

The time period during which response measures are taken to address the risk. Short time indicates high urgency.

How long does it take for a risk to impact project objectives. Short time indicates high proximity.

The likely time period between the occurrence of a risk and the manifestation of its effects. A short time indicates a short incubation period.

Graphics that classify risk using more than two parameters

A table that maps the probability of each risk occurring to the impact on the project objectives if it occurs.

direct cost

contingency reserve

management reserve

Monte Carlo analysis is commonly used to simulate the impact of individual risks and evaluate the impact on the overall project.

Used to determine the impact of a unit change in a certain variable on project results. , and sorted in descending order of relevance, focusing on the most sensitive variables

The results of sensitivity analysis are often represented by a tornado diagram

Calculate the expected monetary value of alternatives and choose the best one

Expected Monetary Value emv = Probability * (Revenue - Cost)

Graphical aids to decision making under uncertainty

Represents the causal relationship between variables and results, the temporal sequence of events

Exceeds the authority of the project manager

Once a threat is reported, there will be no further oversight by the project team

Change plans to complete elimination of threats, such as reducing scope, canceling work, extending schedule

Transfer the risk impact and response responsibilities to a third party and pay the risk fees. For example: insurance, guarantee, guarantee, contract

Reduce the probability and impact of threats, such as adopting simpler processes; Choose more reliable suppliers; conduct more tests; draw prototypes;

Low-priority threats, acknowledge the existence of threats, and continue to promote project progress according to the current situation

A common active acceptance strategy is to establish an emergency reserve; a passive acceptance strategy is to not proactively take measures. Just review the threats regularly

Opportunities are usually escalated to the level that will be affected by the opportunity

Make sure opportunities arise and seize them. For example: allocate the most capable resources to the project to shorten the construction period; Adopt technological upgrades to reduce costs; add high-yield jobs to improve efficiency; Negotiate modifications to risk thresholds to include opportunities; introduce high-end talent and technology

Assign responsibilities to capable third parties, for example: establishing partnerships, collaborative teams

Increase the probability and impact of an opportunity, e.g. adding resources to complete an activity sooner

Acknowledges the existence of opportunities but does not take proactive measures, suitable for low-priority opportunities