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Risks exists on all projects and the potential that a particular risk will occur depends on the nature of the risk. Risk changes as the project progresses and should be monitored thought the project. Risk is after all uncertainty the more you know about risks and their impact before hand the better equipped you will be to handle a risk when it occurs.
Risk associated with a project generally concern four project objectives –time, cost, scope and quality or any combination of the four. Risk tolerance is that balance where stake holders are comfortable taking a risk because the benefits to be gained outweigh what would be lost-or just the opposite. The key outcome of performing risk planning meetings are as follows
ü Risk cost elements are developed for inclusion in the project budget.
ü Schedule activities associated with the risk are developed for inclusion in the project schedule.
ü Risk responsibilities are assigned.
ü Templates for risk categories are defined or modified for the project.
ü Definitions of terms(Probability, Impact, risk types , risk levels are developed and documented)
We can also create a risk break down structure for a particular project by means of meetings, Delphi technique or expert judgement.
In a ERP implementation project you require to create a probability and impact matrix which helps you to determine which risks need detailed risk response plans in a typical ERP implementation project risks can be found in as given below
ü Budget/Funding
ü Schedule
ü Scope or requirement changes
ü Project Plan
ü Project Management Process
ü Technical Issues
ü Personal issues
ü Hardware
ü Contracts
ü Political Concerns
ü Business risk
ü Legal Risk
ü Environment risks
ü Management Risks
Tools and Techniques to identify Risks
ü Documentation reviews
ü Information Gathering Techniques
ü Checklist Analysis
ü Diagramming Techniques Like Fish bone Diagram
ü SWOT analysis
ü Expert Judgement
ü Risk Register where you enter all the risks that come to your mind during the Project.
The Author is a Subject Matter Expert on ERP and has worked in various capacities as project Manager, ERP Consultant, Test Manager and Implementation Manager , he can be contacted on sureshmenonr1009@gmail.com for queries and comments.
