Question

n the overall risk management process there are a couple of risk processes which prioritize the risk events of a project. Which process will typically create a prioritized list of risk? In addition, what are the high-level categorizes which are often used in risk management.

The key here is to understand that the high-level requirement can and most likely will have sub-categories which will contain areas like scope, schedule, and cost. If we look at the overall monitoring and controlling of project risks, which project artifacts will be of most value when monitoring and controlling risks?

Answer 1

Once the risks have been identified, the next step is to prioritize the risks. This helps attend the most dangerous and hazardous risks first. The nature of the risk and it's potential to affect is assessed. They are categorized on basis of risk magnitude, occurrence and outcome.

The high level risks are the ones with highest magnitude, occurrence and greatest negative impact.

Further, process including analyzing the process to manage the risk, i.e. lower or eliminate the risk. It is determined which changes are to be done, will this require financial assistance, what will be the effect on schedule and overall profitability.

Risk management helps us achieve our goals with high efficiency. When any problem or obstacle occurs, the solutions are available and corrective actions are immediately taken. Hence the matter is resolved at the earliest and this helps smooth project execution.