Project Management Practitioner

Risk tolerance is a balance that stakeholders are comfortable taking a risk because the benefits to be gained outweigh what could be lost—or just the opposite. They will avoid taking a risk because the cost or impact is too great given the amount of benefit that can be derived.

Usually the higher tolerance translate into taking more risk and prepared to face it consequences.

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This is one of the output of the Risk Identification process.

All the identified risks must be documented and this document list is called as Risk Register. The Risk Register should contain the followings

1. Identified Risk
2. Root Cause of the risk
3. Potential Risk Response
4. Risk Category
5. Risk Trigger

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This is one of the process of the Risk Management Process.

This process involves identifying all the risks the project might encounters and their impacts. Once identified the risks, they must be documented with their characteristics.

Usually the risk will be higher during the initial stage of the project and lower during the closing stage of the project.

Risk identification is an iterative process and must carried out through the project life cycle.

A good Project manager will identify and foresee most of the potential project risk and this will greatly help in handling them while they occurs.

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Risk categories are the systematic way to identify risks and provide a foundation for understanding across the project team.

Risk categories are identified during Risk Management Planning process and documented in the risk management plan.

During the Risk Identification the Project Manager will list down all the identified risks under the respective Risk Categories.

Example for Risk Categories

1. Technical
2. Schedule
3. Vendor
4. External
5. Organizational

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The Project Manager will identify all the known project risks and group them in a categorized manners. If required he/she will create relevant sub categories and risks will be placed accordingly. This will help the Project Manager to prepare proper risk mitigation plans.

RBS is a graphical way to display risk categories and their subcategories. The RBS is an element of the risk management plan.

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Risks are the events which influences the project either positively or negatively. Risks include both threats to and opportunities within the project.

Risks come about for many reasons. Some are internal to the project, and some are external. Some risks can be predicted in advance and others will occur unannounced during the project.

Risk is highest at the beginning of the project and gradually decreases the closer the project comes to completion.

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A RAM is usually depicted as a chart with resource names listed in each row (for example, programmers, testers and trainers) and project phases or
WBS elements listed as the columns.

The RAM ties roles and responsibilities with the WBS elements to ensure that each element has a resource assigned.

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This is part of Schedule Development Tools and Techniques.

It is used when resources are limited or time constrained and when specific schedule dates need to be met. During this process the Project Manager will assign the actual resources to the specific project activities. After the resource leveling was done, the initial project schedule will be extended.

This also will help to identify the overloaded and underloaded resources. A good Project Manager will take this opportunity to use his/her resources optimally.

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Resource calendars are the register which describes about a particular resource or groups of resources and their skills, abilities, quantity, and availability. It will display the company holidays, public holidays and resource’s planned vacations.

This calendar will greatly help the Project Manager to plan the activities and decide the project schedule.

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This is a hierarchical description of the resources, arranged by type, that will work on the project.

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