A risk breakdown structure organizes the risks that have been identified into categories using a table with increasing levels of detail to the right. David Hillson 1 uses the same framework as the work breakdown structure (WBS) for developing a risk breakdown structure (RBS). Examples of people risks include the risk of not finding the skills needed to execute the project or the sudden unavailability of key people on the project. The people category can be subdivided into risks associated with the people. Some examples of categories for potential risks include the following: Identifying the sources of risk by category is another method for exploring potential risk on a project. The past experience of the project team, project experience within the company, and experts in the industry can be valuable resources for identifying potential risk on a project. These checklists can be helpful to the project manager and project team in identifying both specific risks on the checklist and expanding the thinking of the team. Some companies and industries develop risk checklists based on experience from past projects. Risk IdentificationĪ more disciplined process involves using checklists of potential risks and evaluating the likelihood that those events might happen on the project. All ideas are welcome at this stage with the evaluation of the ideas coming later. The creative process includes brainstorming sessions where the team is asked to create a list of everything that could go wrong. Identifying risk is both a creative and a disciplined process. A risk mitigation plan is designed to eliminate or minimize the impact of the risk events-occurrences that have a negative impact on the project. Risk assessment includes both the identification of potential risk and the evaluation of the potential impact of the risk. Managing risks on projects is a process that includes risk assessment and a mitigation strategy for those risks. Describe the processes for mitigating risk.Describe the processes for evaluating risk.Describe the processes for identifying project risk.Identify the major elements in managing project risk.