ITC4780 Unit V Mini Project

consulting costs might be expanded in the description to say that the organiza- tion might be able to negotiate lower-than-average costs for a particular consul- tant because the consultant really e njoys working for that company in that particular location.

• The categor:y under which the risk event falls: For example, defective server might fall under the broader category of technology or hardware technology.

• The root cause of the risk: The root cause of the defective server might be a defective power supply.

• Triggers for each risk: Triggers are indicators or symptoms of actual risk events. For example, cost overruns on early activities may be symptoms of poor cost estimates . Defective products may be symptoms of a low-quality supplier. Documenting potential risk symptoms for projects also helps the project team identify more potential risk events .

• Potential responses to each risk: A potential response to the risk event of a defective server might be the. inclusion of a clause in a contract with the supplier to replace a defective server within a certain time period at a negotiated cost.

• The risk owner or person who will own or take responsibility for the risk: For example, a certain person might be in charge of any server-related risk events and managing response strategies.

• The probability of the risk occurring: There might be a high, medium, or low probability of a certain risk event occurring. For example, the risk might be low that the server would actually be defective .

• The impact to the project if the risk occurs: There might be a high , medium, or low impact to project success if the risk event actually occurs. A defective server might have a high impact on successfully completing a project on time.

• The status of the 1isk: Did the risk event occur? Was the response strategy com- pleted? Is the risk no longer relevant to the project? For example , a contract clause may have been completed to address the risk of a defective server.

TABLE 11-5 Sample risk register

437

No. Rank R1sk Description Category Root Tnggers Potential Risk Probability Impact Status

R44 1

R21 2

R7 3

Cause Responses Owner

For example, the following data might be entered for the first risk in the register as fol- lows. Notice that Cliffs team is taking a very proactive approach in managing this risk.

• No.: R44 • Rank: 1 • Risk: New customer • Description: We have never done a project for this organization before and

don't know too much about them. One of our company's strengths is building

Project Risk Management