Sunday, June 7, 2020

RISK CATEGORIZATION (PMP Tool)



Description


It is a technique used for grouping individual risks.

Categories of risk help identify the common areas of risks. Often project managers and PMOs have a pre-defined list of cateries of risks based on the information of the past projects to easily identify the risks.

The following are some common risk categories on the basis of the type of risks.

1. Internal (Material, equipment, people, time, cost, scope, skill, and changes)

2. External (Environmental, governmental, market, and regulatory)

3. Technical (Changes in technology)

4. Other Unforeseeable (Any other risks not classified in the above groups)


These are some of the risk categories on the basis of source,

1. Schedule related

2. Cost related

3. Scope related

4. Quality related

5. Performance related

6. Resource related

7. Stakeholder satisfaction related

8. Organization related

9. Environment related


Risk categorization is very effective in identifying the risks. With appropriate effort, around 90% of the risks can be categorized and later identified by the project. This tool is used in Risk Management in the Planning Phase of Project Management. 

 TIt is an independently-used project management tool.

Where it is Used


Process Groups

Planning

Knowledge Areas

Project Risk Mgmt.

Activities

Perform Qualitative Risk Analysis

Process Group
Knowledge Area
Activity
Planning
Project Risk Mgmt.
Perform Qualitative Risk Analysis


 

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