TOPIC

RISK ESTIMATION

• Presented by
• Saif ur rehman
• Ali shawaiz
• Muhammad owais
 RISK
• Risk is any unexpected event that can affect your project

What is risk estimation in project

Project risk estimating is a subsidiary process that enables an analysis of
project risks and allows removing or mitigating identified risks which
threaten successful achievement of project objectives or producing of
project deliverables
HOW WE ESTIMATE RISK IN PROJECTS ?

 Step 1: Identify potential risks. Sit down and create a list of every possible risk and
opportunity you can think of. ...

 Step 2: Determine probability. What are the odds a certain risk will occur? ...

 Step 3: Determine Impact. What would happen if each risk occurred?

COMMON PROJECT RISK

• Technology risk • Performance risk

• Communication risk • Market risk
• Scope creep risk • External hazards
• Cost risk
• Operational risk
• Health and safety risk
• Skill recourse risk
TECHNOLOGY RISK

• Technology risk means your projects may have to be altered or amended due to

problems or changes in the hardware and software you use. There are many
ways that technology is able to affect your project.
• Risks associated with technology are more challenging because implementing new IT
programs often requires fresh personnel training and software acquisition.
• The technological aspect of running a project is a complex deliverable because there
is a high turnover of new and advanced technologies
HOW WE OVER COME TECHNOLOGICAL RISK

1.secure computers, servers and wireless networks.

2.use anti-virus and anti-spyware protection, and firewalls.
3.regularly update software to the latest versions.
4.use data backups that include off-site or remote storage.
5.secure your passwords.
6.train staff in IT policies and procedures.
COMMUNICATION RISK

• Effective and timely communication is a significant work ethic that you must strictly
observe when you are in charge of a project. Setting up meetings with stakeholders,
such as project donors, helps you track any changes, reassign tasks and foster a
cohesive team environment.

• Communication risk comes from the chance that the message you give and your
project team receives goes awry.
HOW WE OVER COME COMMUNICATION RISK.

1.checking whether it is a good time and place to communicate with the person.
2.being clear and using language that the person understands.
3.communicating one thing at a time.
4.respecting a person's desire to not communicate.
5.checking that the person has understood you correctly.
 SCOP CREEP RISK

• Uncontrolled and unauthorized change to the initial intended project scope may lead
to the extra cost of additional features, products or functions. Almost all projects face
this risk, and sometimes it poses an irreversible challenge because some of the
added functions are significant to the project and desirable to the project's success.
HOW WE OVERCOME SCOPE CREEP RISK

1.Start Each Project with a Contract. A clearly defined written contract is an important part of setting
expectations at the beginning of a project. ...
2.Create a Backup Plan. ...
3.Host a Kick-Off Meeting. ...
4.Communicate Clearly and Often. ...
5.Know When to Say “No” ...
6.Keep Your Options Open.
COST RISK

• A shortage or mismanagement of project funds resulting from an inflated budget or

other constraints is a threat to the project's completion. When the project cost is higher
than the budgeted funds, the risk might shift to other operations and workforce
segments. The reduction of the funds may also contribute to an occurrence of a scope
risk.

How we over come

1.Thorough Project Planning. The best way to stop cost overrun is to plan against it before
executing a project. ...
2.Know Your Vendors. ...
3.Keep to Planned Scope. ...
4.Use a Project Planning Tool. ...
5.Keep Stakeholders Updated. ...
6.Monitor Progress. ...
7.Reassign Resources.
OPERATIONAL RISK

• A project may stall or terminate if there is a poor implementation of critical

operations and core processes such as production or procurement. The risks could
result in a direct or indirect loss owing to inadequacy or failed qualitative,
quantitative or strategies. Depending on the project type, operational risks are:

How we overcome
•Step 1: Managing Equipment Failures. ...
•Step 2: Keep Strong Business to Business Relationships. ...
•Step 3: Having Adequate Insurance. ...
•Step 4: Know the Regulations.
 HEALTH AND SAFETY RISK

• A health and safety risk, within the context of occupational health, relates to an
assessment of hazards that can lead to the harm, injury, death, or illness of a worker
in a determined workplace. Although these risks are noted seperately, they are
considered in conjunction to each other.

How we overcome
•trying a less risky option.
•preventing access to the hazards.
•organizing your work to reduce exposure to the hazard.
•issuing protective equipment.
•providing welfare facilities such as first-aid and washing facilities.
•involving and consulting with workers.
 SKILL RECOURSES RISK

• Resource risk refers to the chance that you may not be able to get all the
necessary resources required to complete a piece of work. There are a range of
factors that can impact this risk, and many of these may be out of your control as
a project manager.
How we overcome
1.Know your team's availability.
2.Manage risks before they occur.
3.Take your team's capacity into account.
4.Avoid unrealistic schedules.
5.Avoid resource hogging.
PERFORMANCE RISK

• Performance risk is simply the risk that the project won't produce the results and
benefits outlined in the project specifications. Even if you keep costs within
budget and stick to the schedule, performance risk can mean that you've lost time
and money on a project that ultimately did not deliver.

How we overcome
1.The Use of "On Demand" Management Consulting Services as an Alternative to Staff
Augmentation Contracting.
2.THE RISE OF STAFF AUGMENTATION CONTRACTING.
3.THE DOWNSIDE OF STAFF AUGMENTATION CONTRACTING.
4.ALTERNATIVES TO STAFF AUGMENTATION CONTRACTING
 MARKET RISK

• Market risk includes risks posed from competition, commodity markets, interest

rates, foreign exchange, and liquidity and credit risks. This project risk is more
unpredictable and difficult to plan for, but there are ways in which project
managers can protect their business.

How we overcome
1.Diversify to handle concentration risk. ...
2.Tweak your portfolio to mitigate interest rate risk. ...
3.Hedge your portfolio against currency risk. ...
4.Go long-term for getting through volatility times. ...
5.Stick to low impact-cost names to beat liquidity risk.
 EXTERNAL HAZARD RISK

• External hazards risk. A likely adverse event beyond the control of the project
management is a potential risk. Such risks manifest in various types and forms,
including terrorism, storms, floods, vandalism, earthquakes and civil unrest. A
project may stall or discontinue when such events occur.

How we overcome
1.Maintain (or develop) a diverse customer base. If one of your customers reduces their trade
with you, it's good to have others so you are not reliant on one type of customer.
2.Have available funds to manage a short term downturn, or access to credit. ...
3.Be able to rapidly reduce costs.
THANKS ALL OF YOU
ANY QUESTION IF U HAVE?