After the risks have been identified, their potential impact on the project must be estimated. This is done by estimating the probability that these risks will be realized and the damage to the project should such a scenario become reality. Multiplying the ’realization probability’ by the ’degree of damage’ generates a ‘risk exposure’ measurement, according to which the risks will…
The risk identification process deals with the prediction of future events whose probability of realization is not 100%. None of us is a prophet and so the whole process relies on estimates - more or less accurate. A significant factor in the process of identifying risks is the project’s uncertainty level, which affects the ability to identify and evaluate potential…
A true risk is one that describes first and foremost an event that is: Risk is a Future Event One that has not yet happened. If it has already occurred and has negatively affected the project, we are dealing with a problem that must be solved, not a risk. Risk is a Future Event A problem requires corrective action, often…
Once the generic resources needed to complete the project have been identified, the specific resources needed for each task must be allocated and their availability must be ascertained. In addition, it is necessary to estimate the scope and duration of the work required to complete each task. Resource allocation must be weighed seriously. There are many considerations that have to…
Human resources in the project should be described in a formal structure that defines, first and foremost, formal communication channels within the project. In order to do that, a ‘Resource Breakdown Structure’ (‘RBS’) must be created, in which the human resources needed for the project are defined along with their subordination relations to the project manager. This is, in fact,…
After identifying the connections and constraints in the project, we must identify and define the resources needed for its execution. There are different kinds of resources, which can be divided into four main groups: people, materials, equipment or places, and money. To begin with, the project’s resources can be defined generically: “electrical engineer” or “seminar room”. Later on, these descriptions…
