| Any project execution involves business risk. A | | | | ensure that all risks identified are recorded. Once risks |
| business risk is an an item that if not resolved in time, | | | | are recorded they need to be categories based on |
| can create problems for one or more of the following | | | | impact and frequency. Once this categorization is |
| item: | | | | done, the PM should look for the owner group. A risk |
| - Scope | | | | that does not have identified ownership, has a high |
| - Schedule | | | | chance of becoming an issue. Based on the type of |
| - Budget | | | | impact, the PM must also assign a date by which the |
| - Quality | | | | risk mitigation needs to be presented by the groups |
| Some risks are more significant than others. Some | | | | that owns the risk. |
| risks have higher probability of occurrence than | | | | Many times a risk requires sequential steps by |
| others. Some risks have bigger impact than others. | | | | multiple groups before fully mitigated. In such cases, |
| Active risk management during a project requires the | | | | the ownership must be transferred by the PM from |
| project manager to identify and mitigate the risks | | | | one group to another. |
| based on impact and probability of occurrence. Higher | | | | It has been documented that risk mitigation costs |
| impact and higher probability risks must be mitigated | | | | much less than Issue Management. Effective risk |
| first. | | | | management is one of the key elements of |
| Most project risks are identified during status | | | | successful Project Management. Risk managament |
| reporting. It is very common for the project | | | | becomes extremely critical during ERP |
| reporting to occur at least once a week. During | | | | implementations that tend to impact the whole |
| project status meetings, Project Manager must | | | | business. |