Risk

• Purpose
• Risk defined
  • What is a risk?
  • What is at risk?
  • What is risk management?
• Management of Risk
  • M_o_R_principles
• Risk management in projects
• Risk Management Strategy
• Risk Register
• Risk management procedure
  • Overview
  • Identify part 1
  • Identify part 2
  • Assess
  • Plan
  • Implement
  • Communicate
• Risk budget
• Responsibilities

Key sections

• Introduction
• Business case
• Organization
• Quality
• Plans
• Risk
• Change
• Progress
• Introduction to processes
• Starting up a projectDirecting a project
• Initiating a project
• Controlling a stage
• Managing Product Delivery
• Managing a Stage Boundary
• Closing a Project
• Tailoring PRINCE2 to the project environment
• Directing Projects with PRINCE2

The PRINCE2® approach

Risk management procedure

Implement

The primary goal of the ‘Implement’ step is to ensure that the planned risk responses are actioned, their effectiveness monitored, and corrective action taken where responses do not match expectations.

An important part of the Implement step is to ensure that there are clear roles and responsibilities allocated to support the Project Manager in the management of project risks.

The main roles in this respect are:

A named individual who is responsible for the management, monitoring and control of all aspects of a particular risk assigned to them, including the implementation of the selected responses to address the threats or to maximize the opportunities

An individual assigned to carry out a risk response action or actions to respond to a particular risk or set of risks.
They support and take direction from the risk owner.

There is a risk that a key supplier may go bankrupt.
The commercial director has been appointed as the risk owner.
A number of risk responses have been identified and selected.
One of the risk responses (fallback) is to identify possible alternative suppliers who have the capacity to undertake the affected Work Packages at short notice, and to obtain some quotes from them.
The Procurement Manager is the risk actionee for this particular risk response.

In many cases, the risk owner and risk actionee are likely to be the same person.
The risk owner should be the person most capable of managing the risk.
Allocating too many risks to any one individual should be avoided.

Risk management is a large area and is covered in depth in ‘The Complete Risk Management package’.

PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.