In the fast-paced and unpredictable world of business, staying ahead requires a keen understanding of the forces that shape our environment. As organizations strive to make informed decisions and minimize risks, three essential frameworks come to the forefront—PESTLE, TECOP, and VUCA Let’s delve into the intricacies of PESTLE’s political, economic, social, technological, legal, and environmental […]
Risk mitigation strategies are measures and actions taken to minimize the potential impact and likelihood of risks. These strategies are designed to reduce vulnerabilities, prevent risks from occurring, or mitigate their consequences if they do occur. Five risk mitigation strategies with examples Negative Risk/Threat Positive Risk/ Opportunities Escalate Escalate Avoid Exploit Transfer Share Mitigate Enhance […]
Quantitative risk analysis is a process of evaluating the potential impact of uncertain events on a project or business. It involves the use of mathematical models and statistical techniques to estimate the likelihood and potential consequences of different risks. The goal of quantitative risk analysis is to identify and prioritize the most significant risks so […]
A probability and impact matrix is a tool used in qualitative risk analysis to evaluate the likelihood and impact of identified risks. It uses a numerical scale to rate the likelihood and impact of each risk, which can then be used to prioritize risks and develop strategies to mitigate or manage them. This matrix specifies […]
Identifying risks is a never-ending task, although some are more likely to occur than others. In addition, certain hazards will inflict a substantial amount of damage to your enterprise, while others will barely make a dent. Therefore, we wish to concentrate our efforts on events that are not only probable but also have the most […]
Residual Risk and Secondary Risk The PMBOK® Guide ver 6 defines risk as “An uncertain event or condition that, if it occurs, has a positive or negative effect upon at least one project objective.” Residual Risks The risks that might remain after the planned response of risk and those that have been purposely accepted. PMBOK […]
Taken together, risk attitude, risk appetite, risk tolerance, and risk threshold influence the decisions made by individuals and organizations regarding how much risk to take on and how to manage it. Risk Tolerance According to PMBOK Guide 6th Edition, Risk tolerance is the identified range of acceptable outcomes Risk tolerance informs you regarding the sensitivity […]
Mitigation plan In risk mitigation, action is taken to reduce the probability of occurrence and/or impact of a threat. PMBOK 6 is used for the risk with high probability and impact and therefore place in action to minimize the impact. Risk mitigation revolves around reducing the impact of potential risk. Mitigating risk doesn’t reduce the […]
Reserves is a buffer in terms of Schedule or Cost while estimating is added to the estimated schedule and cost to account for risks or uncertainties both for known and unknown risks Padding is unwelcomed practice as it adds unplanned values or reserve over the output of estimations As explained in the picture, your reserves are […]