Abbott Project Management Playbook

4.2 I DENTIFY R ISKS A risk cannot be managed unless it is first identified. Consequently, after risk management planning has been completed, the first process in the iterative Project Risk Management process aims to identify the knowable risks to project objectives. It is, however, impossible to identify all the risks at the outset of a project. Over time, the level of project risk exposure changes. The purpose of risk identification is to identify risks to the maximum extent that is practicable. The fact that some risks are unknowable requires the Identify Risk process to be iterative, repeating to find new risks which have become knowable since the previous iteration of the process. When a risk is first identified, potential responses may also be identified at the same time.

Examples of how risks are identified include: •

Use lessons learned from previous projects • Create a SWOT (Strengths, Weakness, Opportunities, Threats) • Interview relevant experts • Perform assumptions analysis • Perform document reviews • Use brainstorm sessions • Use checklists

Once a risk is identified it must be added to the risk register with a risk owner.

4.3 P ERFORM Q UALITATIVE R ISK A NALYSIS The Perform Qualitative Risk Analysis process assesses and evaluates characteristics of individual project risks and prioritizes (classifies) risks based on agreed-upon characteristics. Assessing individual risks using qualitative risk analysis evaluates the probability that each risk will occur and the effect of each individual risk on the project objectives. As such it does not directly address the overall risk to project objectives that results from the combined effect of all risks and their potential interactions with each other. This can however be achieved through use of quantitative risk analysis techniques. The methods of qualitative risk analysis are applied to the list of risks created or updated by the Identify Risks process to provide project management with the characteristics of the risks that have the most influence on achieving the project’s objectives. Risks that are assessed as very high priority as per Figure 4.3 - Heat Map are those that threaten the achievement of project objectives and will be an important focus in the Plan Risk Responses process. They may be further analyzed, such as in the analysis of the overall project risk that is discussed in Perform Quantitative Risk Analysis process.

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