A project team is working on an extremely complex project with many identified risks and awareness of likely unidentified risks. The project manager has cautioned the team to also prepare carefully for secondary and residual risks.
Where can the project team find information about these risks so they can execute the project manager's instruction?
The team should look in the risk register. The risk register is a comprehensive document that records the details of all identified individual risks to a project. This document includes information about the person responsible for managing the risk, probability, impact, risk score, planned risk responses, risk categories, risk triggers, and timing information. Secondary risks arise as a direct result of implementing a risk response. Once a set of risk responses has been developed, it should be reviewed to see whether the planned responses have added any secondary risks. Residual risks are risks that remain after risk responses have been implemented. The review should also assess the residual risk that will remain once the response actions have been executed.
A risk management plan is a comprehensive document that outlines how risks will be identified, analyzed, responded to, monitored, and controlled throughout the project. This document includes ground rules, procedures, roles, responsibilities, risk categories, tolerance levels, and communication strategies to ensure effective risk management and project success. The risk management plan will contain the details of the processes the team will use to perform various risk management activities, including tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project. We can use a risk matrix to assess and prioritize risks based on their probability of occurrence and the impact they may have on the project. The risk matrix is typically represented as a grid where risks are plotted according to these two dimensions, helping project managers decide which risks need to be managed and which can be ignored. A risk breakdown structure is a hierarchical framework used in project management to identify and categorize potential sources of risk. This framework helps project managers systematically break down and analyze risks, ensuring comprehensive risk identification and management.