®

PRINCE2 FOUNDATION Version 5.6.1

Risk

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 Risk

PRINCE2® manual page 77

Workbook page 129

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Risk
Information hierarchy

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Risk
Introduction
● What is risk?
● An uncertain event that will affect objectives: threat or opportunity
● What is risk management?
● Identifying, assessing and controlling
● Risk management policy (corporate/programme)
● Starting point for risk management in all projects
● Defines: risk appetite, responsibilities, risk tolerance

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Risk
Management products
● Risk Management Strategy Manual 259
● Describes techniques and standards
● Responsibilities for risk Workbook 133

● Risk Register
● Record of all identified risks
● Captures and maintains a formal record of all
opportunities and threats Manual 260

Workbook 135

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Risk
Risk management procedure

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Risk
Identify
● Identify context
● Gather information about the project context
● To create the Risk Management Strategy
● Identify risks
● Describe as: cause (source of risk), event (area of uncertainty),
effect (impact on project objectives)

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Risk
Identify
● Opportunities and threats
● Opportunities may impact project objectives in a positive way
● Threats may impact project objectives in a negative way

Risks vs. Issues

Uncertain Certain
Futuristic Current
May impact objectives Has/will impact objectives
Unknown impact value Known impact value

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Risk
Assess
● Estimate
● Probability: likelihood of occurrence
● Impact: effects on project objectives
● Proximity: when it may occur (if no action taken)
● Evaluate
● Total impact on a project
● Determine aggregate risk profile
● Does the project have continued business justification?

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Risk
Plan
● Maximise opportunities, minimise threats

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Risk
Plan
● Residual risk remains following a response
● Remains following a chosen response to the original inherent risk
● Avoid or accept risk responses means there is no residual risk
● Secondary risk
● Result of a response being allocated to a risk
● Risk responses can raise uncertainty

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Risk
Implement & communicate
● Implement risk responses
● Risk owner: responsible for manage, monitor and control
● Risk actionee: assigned to carry out a response
● Risk budget is money to fund responses.

● Communication is continual
● Information passed within the project team
● Information is passed to external stakeholders.

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Risk
Principles
● Continued business justification
● Learn from experience
● Defined roles and responsibilities
● Manage by stages
● Manage by exception
● Focus on products
● Tailor to suit project environment

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