Project Risk Assessment Process

This skill guides the project risk assessment process for feasibility analysis, covering schedule risks, resource risks, and business risks.

When to Use

• Project feasibility analysis phase
• Before project kickoff or major milestones
• When significant changes occur that may introduce new risks
• When preparing project proposals for stakeholder review

Assessment Dimensions

1. Schedule Risks

• Timeline feasibility
• Milestone achievability
• External dependency risks
• Resource availability timing

2. Resource Risks

• Human resource sufficiency
• Key person dependencies
• Budget adequacy
• Resource conflicts with other projects

3. Business Risks

• Requirement change risks
• Business process adjustment risks
• User acceptance risks
• Business value realization risks

Process Steps

Step 1: Define Assessment Scope

• Identify risk categories to assess
• Establish assessment baseline
• Define probability and impact scales

Step 2: Risk Identification

• Brainstorm potential risks in each category
• Document risk descriptions and causes
• Identify risk owners

Step 3: Risk Analysis

• Assess probability (High/Medium/Low)
• Assess impact (High/Medium/Low)
• Calculate risk level using risk matrix
• Prioritize risks

Step 4: Develop Response Strategies

• Avoid: Eliminate the risk or change plans
• Transfer: Shift risk to third party
• Mitigate: Reduce probability or impact
• Accept: Acknowledge and prepare contingency plans

Step 5: Document Risk Reports

Create three detailed assessments:

1. Schedule Risk Assessment
2. Resource Risk Assessment
3. Business Risk Assessment

And one summary report:

• Project Risk Assessment Summary

Step 6: Review and Approval

• Present findings to stakeholders
• Obtain management approval
• Update project plans based on risk assessment

Risk Matrix

        Impact
        Low   Medium   High
Prob High  Medium  High     High
     Medium Low     Medium   High
     Low    Low     Low      Medium

Output Templates

Risk Register Entry

Field	Description
Risk ID	Unique identifier
Description	Detailed risk description
Category	Schedule/Resource/Business
Probability	High/Medium/Low
Impact	High/Medium/Low
Level	High/Medium/Low
Response	Avoid/Transfer/Mitigate/Accept
Owner	Risk owner
Status	Open/Closed/Triggered

Risk Summary Report Sections

1. Executive Summary
2. Risk Inventory
3. Detailed Analysis by Category
4. Response Plans
5. Risk-Benefit Analysis
6. Conclusions and Recommendations

Success Criteria

• All high risks have defined response strategies
• Risk analysis is based on data and experience
• Response strategies are specific and actionable
• Stakeholders understand and accept the risk profile

Related Documents

• Schedule Risk Assessment
• Resource Risk Assessment
• Business Risk Assessment
• Risk Assessment Summary Report