How Startups Can Use Risk Prioritization in Their Project Management

Risk prioritization for effective project management culminates from processes involving risk impact assessment. Forewarned is forearmed indeed. The result of your comprehensive risk impact assessment becomes your arsenal in anticipating and mitigating any threats to your project. Nevertheless, as you embark on defining the needs and goals of your project and its implementation, you will […]

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Residual Risk and Secondary Risk- PMP/CAPM

Residual Risk and Secondary Risk The PMBOK® Guide ver 6 defines risk as “An uncertain event or condition that, if it occurs, has a positive or negative effect upon at least one project objective.” Residual Risks The risks that might remain after the planned response of risk and those that have been purposely accepted. PMBOK […]

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Risk Attitude Risk Appetite Risk Tolerance and Risk Threshold – PMP/CAPM

Taken together, risk attitude, risk appetite, risk tolerance, and risk threshold influence the decisions made by individuals and organizations regarding how much risk to take on and how to manage it. Risk Tolerance According to PMBOK Guide 6th Edition, Risk tolerance is the identified range of acceptable outcomes Risk tolerance informs you regarding the sensitivity […]

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Mitigation plan, Fallback Plan, Contingency Plan and Workaround – PMP/CAPM

Mitigation plan, Fallback Plan, Contingency Plan and Workaround Mitigation plan In risk mitigation, action is taken to reduce the probability of occurrence and/or impact of a threat. PMBOK 6 is used for the risk with high probability and impact and therefore place in action to minimize the impact. Risk mitigation revolves around reducing the impact […]

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Contingency Reserves and Management Reserves – PMP/CAPM

Reserves is a buffer in terms of Schedule or Cost while estimating is added to the estimated schedule and cost to account for risks or uncertainties both for known and unknown risks Padding is unwelcomed practice as it adds unplanned values or reserve over the output of estimations As explained in the picture, your reserves are […]

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Passive Acceptance of Risk and Active Acceptance of Risk – PMP/CAPM

Passive Acceptance of Risk and Active Acceptance of Risk These are two different risk response strategies to deal with the risks on the project. The idea behind good risk response strategies is to provide the team with various options and identify the actions that could reduce or eliminate threats to project objectives. Risk management team […]

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Known Risks and Unknown Risks – PMP/CAPM

Known Risks and Unknown Risk The risk is future uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. [PMBOK6] The risk is the effect of uncertainty on objectives, and an effect is a positive or negative deviation from what is expected. [ISO31000] Project risk […]

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Event-based Risk and Non-Event Risks

The risk is future uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. [PMBOK6] The risk is the effect of uncertainty on objectives, and an effect is a positive or negative deviation from what is expected. [ISO31000] What are Event-based Risk and Non-Event Risks […]

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