Risk

Analysis 81

All risks of venture and project execution must be addressed jointly by both the Venture and the Project Managers with input from the key stakeholders.

8.4 Assessment and Analysis

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Experience shows that most successful projects took the time in the early stages toanalyze risks by:
- Identifying. -

Evaluating - cost/schedule/impact. Avoiding the obvious ones. the potential ones and estimating theircost if implemented.

- Classifying - obvious/potential.
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- Developing mitigating and control strategies for

Experience also shows that the success of this exercise is vitally dependent on the active participation of knowledgeable representatives from the key stakeholders, eachwith prior relevant experience. When such expertise is not available in the assigned project team it should be temporarily supplemented during the risk analysis exercise with a qualified third party. An experienced and independent third party risk analysis facilitator has proven to be an effective aidto projectleadersin such situations. This completely detached person can ask probing, sensitive questions which may be awkward or politically incorrect for any of the project team members to ask.
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Additionally, someone skilled in the art of conducting such sessions, who can also contribute directly to the risk analysis, would be a cost-effective, value-added influence.

The effort invested in the risk analysis must be commensurate with the size, type. and importance of the project.
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On small projects, like the ones addressedin this book, risk analysis can be handled in an informal manner between the Venture and Project Managers and the key members of the project team.
On large and important projects, where risks could have substantial financialimpactor, even worse, affect the corporate image. risk analysis mustbetakenvery seriously and approached inavery deliberateand