Help Center

Risk Management

 

Introduction  Creating a New Risk
Updating a Risk Deleting a Risk
Defining Risk Request Workflows How Project Risk Status Influences Project Status

 

Introduction

 

Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on a project objective.

Risk management: Risk management is the systematic process of planning for, identifying, analyzing, responding to, and monitoring project risk. It involves processes, tools, and techniques that will help the project leader maximize the probability and consequences of positive events and minimize the probability and consequences of adverse events. Project risk management is most effective when performed early in the life of the project and is a continuing responsibility throughout the project.

Note: Geniusproject does not include the management of positive risks

The project risk management process helps project sponsors and teams make informed decisions regarding project alternatives. Risk management encourages the project team to take appropriate measures to minimize:

  • Adverse impacts to project scope, cost, and schedule.
  • Management by crisis.

Risk identification: Risk identification involves identifying potential project risks and documenting their characteristics. Risk identification results in a deliverable; the project risk list.

Qualitative Risk Analysis: Qualitative risk analysis assesses the importance of the identified risks, and develops prioritized lists of these risks for further analysis or direct mitigation. The team assesses each identified risk for its probability of occurring and its impact on project objectives. Team members review the qualitative risk during the project’s lifecycle. When the team repeats qualitative analysis for individual risks, trends may emerge. These trends can indicate the need for more or less risk management action on particular risks, or whether a risk mitigation plan is working.

Risk Response Planning: Risk response planning focuses on the high-risk items evaluated in the qualitative risk analysis. It identifies and assigns parties to take responsibility for each risk response. This process ensures that each risk requiring a response has an owner. The project leader identifies the best strategy for each risk, and then designs specific actions to implement it. These strategies and actions include:

  • Avoidance. The team changes the project plan to eliminate the risk or to protect the project objectives from its impact. The team might achieve this by changing scope, adding time, or adding resources.
  • Mitigation. The team seeks to reduce the likelihood or consequences of a risk event to an acceptable threshold. They accomplish this via many different means that are specific to the project and the risk. Mitigation phases, although costly and time consuming, may still be preferred to going forward with the unmitigated risk.
  • Acceptance. The project leader and the project team decide to accept certain risks. They do not change the project plan to deal with a risk, or identify any response strategy other than agreeing to address the risk if and when it occurs.
  • Risk monitoring and control: Risk monitoring and control keeps track of the identified risks, residual risks, and new risks. It also ensures the execution of risk response plans, and evaluates their effectiveness. Risk monitoring and control continues throughout the project life cycle. The list of project risks changes as the project matures, new risks develop, or anticipated risks disappear. Periodic project risk reviews repeat the tasks of identification, analysis, and response planning (see previous tasks). Risk ratings and prioritization commonly change during the project life cycle.

Risk control involves:

  • Choosing alternative response strategies.
  • Implementing a contingency plan.
  • Taking corrective actions.
  • Re-planning the project.

 

Creating a New Risk

 

For each identified risk a new Risk document must be created. This document defines which project the risk refers to, and classifies the risk. Classification criteria are defined in the various Risk setup documents.

To create a new risk:

  • Navigate to the Projects tab.
  • Click New risk from the contextual navigation menu OR click Create on the action menu bar and select Risk.

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  • The new risk form will open.

 

The Header

 

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Risk

Title of the risk.

Project

The project that the risk applies to.

Phase

The phase of the project the risk applies to. If it applies to the project as a whole, then select Global.

Project leader

The main project leader (not the project leader substitute).

Deadline

Visual indicators:

Red, deadline passed.

Orange.

Green, OK.

Version

Version number of the document.

Modified on

Date and time of the last modifications. By clicking on the date you can access the history of the modifications.

Last comment

New discussion

Displays the last comments made on the risk. You can reply directly to the comments by clicking on "Reply" and you can create a new discussion by clicking on "New discussion". See "Collaborate with Genius Live!" for more information.

 

The General Tab

 

The General tab is used to define the likelihood that the risk will occur, and its potential consequences (impact). Geniusproject can track two sets of values for likelihood and impact; the planned value (original) and the actual value after mitigation. Each set of values can have up to 6 levels of measurement, depending on the risk setup.

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Once likelihood and impact have been set, the system automatically computes the severity of the risk by multiplying them (likelihood by impact). Geniusproject uses a matrix to provide a visual representation of the risk’s likelihood and impact combined.

Depending on the setup, this matrix can be a 3x3 matrix, a 6x6 matrix, or any combination in between. The matrix indicates whether each risk is high, moderate, or low.

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The bullet shows the original position of the risk in the evaluation matrix. Once the qualification has been done, the original likelihood and impact will be locked as reference data. Once the risk is locked a new line appears below to track the actual  "likelihood", "impact" and  "severity". The bullet will show the actual position of the risk in the risk matrix during and after mitigation.

Classification

Risk 1st level of classification

The risk’s first level of classification. The label for this field comes from the Risk labels setup document. The list of choices is defined in the corresponding Risk setup document.

Risk 2nd level of classification

The risk’s second level of classification. The label for this field comes from the "Risk labels" setup document. The list of choices is defined in the corresponding Risk setup document, according to the value selected in the previous field. Mandatory.

Risk 3rd level of classification

The risk’s third level of classification. The label for this field comes from the "Risk labels" setup document. The list of choices is defined in the corresponding Risk setup document according to the value selected in the previous field. Only visible if the number of classification levels defined in the "Risk labels" setup document is at least "3", and then mandatory.

Risk 4th level of classification

The risk’s fourth level of classification. The label for this field comes from the "Risk labels" setup document. The list of choices is defined in the corresponding Risk setup document, according to the value selected in the previous field. Only visible if the number of classification levels defined in the "Risk labels" setup document is "4", and then mandatory.

Risk Levels

Original/ Likelihood

Likelihood the risk will occur. List of choices. Possible values are 1 to 6, depending on the setup done in the "Risk labels" setup document. The corresponding labels come from the "Risk labels" setup document. The "Original" label also comes from the "Risk labels" setup document.

Original/ Impact

Impact the risk will have once it occurs. List of choices. Possible values are 1 to 6, depending on the setup done in the "Risk labels" setup document. The corresponding labels come from the "Risk labels" setup document.

Original/ Severity

The product Likelihood * Impact.

Original/ Evaluation

By default, computed and equal to the severity. It can be edited and changed manually by clicking the closed padlock icon to the right of field label (the icon shows the current status).

Clicking the open padlock icon switches back to the computed value.

Padlock icons

The padlock icons show the current status.

GP V7.2 User Manual_20131115 - CI_GI - 11-15_img50: the field is editable.

GP V7.2 User Manual_20131115 - CI_GI - 11-15_img51: the field is not editable.

Once all original values are set, they can be locked and the actual values are displayed. The original values can be then unlocked and modified.

If there is no workflow defined, editing is done through the closed padlock icon or can be locked again with the open padlock icon next to the table’s "Risks" label. If a workflow is defined, then the icons are hidden and the standard workflow functions must be used to lock and unlock the values. See the Workflow definition document for further information.

Actual/ Likelihood

Computed likelihood, according to the completed mitigation actions. The "Actual" label also comes from the "Risk labels" setup document.

Actual/ Impact

Computed impact, according to the completed mitigation actions.

Actual/ Severity

Computed severity, Actual likelihood * Actual impact.

Actual/ Evaluation

By default, computed and equal to the actual severity. But if the original evaluation was edited and modified manually, it is also editable and by default equal to the original evaluation.

Matrix

A matrix ranging from3x3 to 6x6, depending on the matrix setup done in the "Risk labels" setup document. It displays the original position of the risk (big gray bullet), and the actual position (small blue bullet) when original values are locked. The vertical axis represents the likelihood, where the horizontal axis represents the impact.

The matrix is divided into one to three zones, green, orange and red, depending on the matrix setup done in the "Risk labels" setup document. Clicking on the question mark icon (?) next to the table title displays the legend for the matrix. The legend is customizable.

When the original values are locked, an icon is displayed in the lower left corner of the matrix, which allows running the risk calculation according to the completed actions.

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The Impact Tab

 

The Impact tab consists of text fields used to describe the impact the risk could potentially have on the project, as well as the value of the impact in days and dollars.

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Impact

Optional, Description of the impact of the risk. Rich text.

Quality

Optional. Impact on the quality if the project’s results. Free text.

Planned days

Delay in days if the risk occurs

Cost

Additional costs if the risk occurs.

 

The Mitigation Tab

 

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Geniusproject allows for the creation of actions as a mitigation plan that will either reduce the likelihood of a specific risk from occurring; reduce the impact of a risk on a project and its deliverables, or both.

All mitigation actions in Geniusproject are in fact "Task" documents that are linked to the "Risk", but managed as standard tasks. The creation of these mitigation tasks are initiated from the Mitigation tab in the Risk form.

Mitigation actions

Click the GP V7.2 User Manual_20131115 - CI_GI - 11-15_img55 icon to create a new mitigation action. It is possible to create up to 10 mitigation actions. For more information, see the project life cycle document Define the project risks.

Icon

Displayed for each defined mitigation action.

GP V7.2 User Manual_20131115 - CI_GI - 11-15_img56: The task is not completed.

GP V7.2 User Manual_20131115 - CI_GI - 11-15_img57: The task is completed.

Description

Displayed for each defined mitigation action.

The task’s subject. It is also a link that opens the corresponding Task document directly.

Costs

Displayed for each defined mitigation action.

The task’s internal cost.

Duration

Displayed for each defined mitigation action.

The task’s planned workload.

% on the likelihood

Displayed for each defined mitigation action.

The amount likelihood is reduced once the action is completed.

Percentages can be locked by clicking on the open padlock icon.

Once locked, they can be unlocked by clicking on the closed padlock icon.

% on the impact

Displayed for each defined mitigation action.

The amount impact is reduced once the action is completed.

Percentages can be locked by clicking on the open padlock icon.

Once locked, they can be unlocked by clicking on the closed padlock icon.

Total costs

The total internal costs of all defined mitigation actions.

Total days

The total planned workload of all defined mitigation actions.

Once the task has been created, its cost and workload are retrieved and listed in the risk document. It is possible to assign a value to likelihood and impact for each task. This value represents how much the risk will be reduced if the task is completed i.e. if a risk’s likelihood is rated 5 and task T has a mitigation likelihood factor of 20%, once task T is completed the risk’s likelihood will be reduced to 4.

 

Updating a Risk

 

To update an existing risk simply navigate to the Risks module and locate your project and the risk to be updated. Open the Risk form in edit mode and apply any necessary changes and updates.

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If an approval or revision workflow has been applied to the risk form, it may no longer be possible to update or edit a risk after it has been submitted.

 

Deleting a Risk

 

To delete a risk, navigate to the Risks module and locate your project and the risk to be deleted. Select the risk by placing a check in the box next to its title, and click Delete from the menu action bar.

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Defining Risk Request Workflows

 

To ensure the follow-up and execution of the mitigation plan, a workflow can be defined for a "Risk document".

See "Admin Manual" to learn more about creating workflows.

 

How Project Risk Status Influences Project Status

 

It is important to monitor risk analysis during the project. It is also important to note that the "Risk" section of the Project Overview document keeps track of the risks throughout the life cycle of the project.

In the header of the overview is a color coded indicator corresponding to the status of the risks found on the Risks tab.

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The number(s) in the matrix on the Risks tab will automatically open the form for the corresponding Risk, simply by clicking on it.

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