Risk statuses

New

• Description: A newly identified risk that requires assessment and mitigation planning.

• Actions: Initial analysis and evaluation to determine impact, probability, and mitigation strategies.

• Owner Responsibility: Assigned owner to lead assessment and collaboration with stakeholders.

Active

• Description: A risk currently impacting or having potential impact on the project.

• Actions: Ongoing mitigation efforts to reduce probability or impact.

• Owner Responsibility: Overseeing implementation of mitigation actions and tracking progress.

Closed

• Description: A risk successfully mitigated or resolved, no longer posing a threat.

• Actions: Mitigation actions completed, no further action required.

• Owner Responsibility: Verification of successful mitigation and official closure.

These three statuses provide a clear overview of the current state of risks within a project, facilitating effective risk management and communication among project stakeholders.

Risk Categories

In project management, various types of risks can impact project success. These risks can be categorized into different domains, aligning with broader organizational risk categories such as Operational, Financial, Strategic, Compliance, and Reputational risks.

1. Operational Risks

   • Schedule Risks: Potential delays or disruptions in the project timeline due to unforeseen circumstances or resource constraints.

   • Resource Risks: Issues related to the availability, competency, or allocation of resources required for project completion.

   • Technical Risks: Challenges arising from technological complexities, including compatibility issues, system failures, or insufficient expertise.

   • Communication Risks: Ineffective communication among project stakeholders leading to misunderstandings, conflicts, or lack of alignment, hindering project success.

2. Financial Risks

   • Cost Risks: The possibility of exceeding the allocated budget due to unexpected expenses, inflation, or changes in project scope.

   • Resource Risks: Issues related to the availability, competency, or allocation of resources required for project completion.

   • Procurement Risks: Problems related to the acquisition of goods and services, such as supplier issues, contract disputes, or delivery delays.

3. Strategic Risks

   • Scope Risks: Changes or uncertainties in project requirements, objectives, or deliverables that may impact project outcomes or increase workload.

   • External Risks: External factors such as market fluctuations, regulatory changes, natural disasters, or geopolitical events that could affect project progress.

4. Compliance Risks

   • Legal Risks: Potential legal liabilities, contractual obligations, or compliance issues that may arise during the project lifecycle.

5. Reputational Risks

   • Quality Risks: Threats to the project's deliverables meeting the required standards and expectations, which could result in rework or customer dissatisfaction.

   • Communication Risks: Ineffective communication among project stakeholders leading to misunderstandings, conflicts, or lack of alignment, hindering project success.