MGMT 440 IP 4

Risk Reporting

Question 1: What is risk reporting?

Answer 1:

Risk reporting is sharing the information about risks with the interested parties. The

project manager is responsible for monitoring the risks and providing updates about

risk conditions to the project sponsor, stakeholders, team members, and others

identified in the project’s communication plan.

Question 2: When is risk reporting needed in the project?

Answer 2:

The risks are identified and assessed during the beginning of the project. The action

plans are then created and communicated. That is not the end of risk management,

though. As the project evolves, risks may change or disappear, or new risks may

develop. Of course, the anticipated risks may occur, but then the action plans need to

be implemented. The project manager needs to be constantly assessing the project’s

risk condition and periodically checking with the stakeholders to ensure the project’s

risk level is still acceptable.

Question 3: What does the project manager report to the stakeholders?

Answer 3:

The stakeholders were involved in the risk management planning and should be aware

of the risks and associated action plans. Throughout the project, the project manager

should be updating the stakeholders on the status of those plans by answering these

questions:

Did any anticipated risks occur? What actions were taken? Did the actions have

the desired effect?

Have new risks been identified? What actions will be taken?

Have any risks or actions changed? What actions need to be taken?

Has the risk situation changed? Will the risk situation impact the project’s

schedule, budget, resource requirements, or quality?

Question 4: How frequently is this reporting done?

Answer 4:

Reporting on the risk situation should occur with every regularly scheduled status

reporting period. The frequency of this depends upon the duration of the project, the

phase of the project, the risk of the project, and the visibility of the project. Of course,

if any new or changed risks are identified/occurring that will significantly impact the

project’s boundaries, the project manager should notify the stakeholders immediately.

Question 5: What communication device is most appropriate?

Answer 5:

The most appropriate communication device depends upon the project’s

characteristics, the organization’s culture, the urgency of the information, and the type

of information. It also depends on the audience and relationship—the project manager

may communicate risks differently with the sponsor or team than with the stakeholders

or customers. In some cases, face-to-face may be the most appropriate. In others, a

phone call makes sense. In other cases, an e-mail is effective. The communications

should include the updated risk management plan, which should be maintained by the

project manager throughout the entire project.