Risk Assessment is the identification of any event that could have a negative impact on your project. This can be events that are within your span of control but also events that are outside your span of control.
Risk assessment can take many forms, the key is to select the right approach for the circumstances.
Having developed a suitable activity list, the objective is to systematically:
- Identify credible threats and mitigation responses
- Rank the threats according to their importance, usually related to the projected cost, quality and duration
- Evaluate the total risk to the project in terms of potential effect on cost, quality and schedule
After the assessment is complete, we prepare a formal Project Risk Profile that is communicated to the sponsor and project manager. Mutual agreement on the identified risks, the associated risk management plans, and the criteria for change are then negotiated between the sponsor and the project manager.