Risk Identification And Response Planning
A Risk List is created by the project manager during the Inception Phase and presented to you prior to a LCO Milestone.
The project team participate in the process of identifying possible Risks, and assist the project manager in answering the question, 'what could go wrong?'. A Risk List may include hundreds of Risks, but a maximum of 20 are presented to you for Risk Strategies selection and Risk response plans approval.
You are responsible for choosing which Risk Strategy you wish to implement for each Risk. The following is an example of a Risk List:
| Risk ID and Description | Mitigation Plan | Contingency Plan |
|---|---|---|
| RISK1, Data provider changes the API on its own schedule, without prior notification. The next change may happen before the project release Milestone, and the system won't work. | Develop a configurable XML-based integration module that will allow dynamic API changes without code re-factoring (240 staff-hours) | Integration module re-factoring (180+ staff-hours, 10+ days) |
| RISK2, Video compressing module is open-source software and doesn't have any guarantees or support. Defects may be revealed in the module. | Perform module testing (70 staff-hours) and re-identify Risks | Defect removal in the module (220+ staff-hours) |
The Mitigation plan is what actions will be taken in advance to remove Risk responsibility from you. The Contingency Plan is what shall be done when the Risk occurs.
When a Risk List is presented, you select a Risk Strategy for each item listed. You can choose to accept the Risk, or select to implement the Mitigation Plan. For example:
| Risk ID | Rank | Strategy |
|---|---|---|
| RISK1 | Mitigate | Extend budget for 240 staff-hours and develop a configurable XML-based integration module that will allow dynamic API changes without code-refactoring |
| RISK2 | Accept | Do nothing, but if defects are revealed, the budget will be extended for 220 staff-hours in order to remove the defect. If this does not help, the budget will be extended for 500+ staff-hours for the development of a custom video compressing module |
If you accept the Risk, it means that you agree to take full responsibility for it. If the Risk happens, the Contingency Plan will be implemented, resulting in an extension of the project Schedule.
