CHAPTER (7)

Risk Management
1. Break Down Structure

Risk categories

A risk breakdown structure categorizes the project’s risks, which

you can further break down into any levels of detail. Project risk
categories can include:

• External risks: These are risks that are outside your control.
Examples are environmental or regulatory risks, suppliers,
and competitors.

• Internal risks: Internal risks happen in-house, such as lack of

resources, funding delays, or prioritization mistakes.

• Technical risks: These include ambiguities in the scope or

requirements definition and technology obsolescence.

• Project management risks: These risks can impact planning,

communication, project control
(RBS)
2. Risk Identification
3. Qualitative risk analysis

• Probability and impact matrix

rating risks for further quantitative analysis using a probability and impact
matrix, rating rules should be specified by the organization in advance.

Risk probability * impact

• Risk Register updating
 4. Quantitative risk analysis

- Primavera Risk Analysis:(plan phase )

This photo shows the expected finish date before risk assignment for the project

This photo shows the expected final cost

 Tornado diagram of activities – Schedule sensitivity

. Tornado diagram of activities – Duration Sensitivity

Comparison between Entire plan, Pre-mitigated and Post mitigated phase:

. Comparison between Entire plan, Pre-mitigated and Post mitigated phase according
to the Expected Finish Date

Comparison between Entire plan, Pre-mitigated and Post mitigated phase according
to the Expected Final Cost

Cash flow analysis :

 Probabilitic cash flow

Deterministic cash flow