PMI: Risk Management Professional (Part 1) Tutorials
Understanding Risk Management / Risk Categories
Subtitles of the Movie (PMI: Risk Management Professional (Part 1) / Understanding Risk Management / Risk Categories)
Our focus for this movie will be on Risk Categories. There are far too many categories to list here and one thing you'll quickly come across in your career within Risk Management is that every company has different sets of Risk Categories, and even most books you pick up will offer different suggestions and groupings. The PMBOK Guide defines Risk Categories as: A group of potential causes of risk. But the primary thing to know about Risk Categories is the purpose of why you are categorizing risks in the first place. Risk Categories are a way of systematically identifying risks in a consistent manner, and organizing them so that they can be better managed, and so that you can determine the root causes of risk. One way of displaying Risk Categories is through a Risk Breakdown Structure, or RBS, which was defined earlier in this Section. An RBS typically lists risks by their categories and then breaks them down further by sub-categories. Let's take a look at an example. In the example shown on your screen, we see an RBS for a new Call Center build-out project. The first row shows the Project Name, the second row shows the main Risk Categories, which in this case are Internal, External, and Project Management. The layers below are the Risk Sub-Categories. Let's look at it a little bit more closely. For the Internal Category our sub-categories are: Customer, Consumer, and Supplier. For External, the Risk Sub-Categories are: Weather, Political, and Market. And, under Project Management Category, our Sub-Categories are: Planning, Monitoring, and Communication. Now that you have an idea of what Risk Categories may look like, and an RBS, you may be wondering how to go about developing a list of Risk Categories for your project, especially when there isn't a master list to go by. When you first begin a project, it's common to create Risk Categories based on categories used in previous similar projects. This is a great resource and one you'll use often. Risk Categories vary by company and many times also by industry, so another place to reference in general, is general categories and templates that are commercially available and offered by industry. If you are new to a company you may also check with other Project Managers, since a company may have standard templates to work with already. As you begin moving along within the project you'll be able to determine whether any other categories need to be added, and then you build the category list from there. In your Work Files you'll find a document that contains a general collection of Risk Categories for reference. And for review, the categories included are those that you can see on your screen. Clearly you can see that there's a spectrum of categories that are included. These are just a few examples to get you started. This, by no means, is meant to be a comprehensive list, but instead to get you moving in the right direction. As a review, remember that there is no concrete list of Risk Categories. The Risk Categories allow you to systematically identify the project's risks in a consistent manner. It's a way of organizing risks so that they can be better managed and to determine the root causes of risk. And that wraps up this movie on the Risk Categories.
Tutorial Information
| Course: | PMI: Risk Management Professional (Part 1) |
| Author: | Vanina Mangano |
| SKU: | 33982 |
| ISBN: | 1-935320-38-6 |
| Release Date: | 2009-04-08 |
| Duration: | 7 hrs / 109 lessons |
| Work Files: |
Yes |
| Captions: | No |
| Compatibility: |
Vista/XP/2000, OS X, Linux QuickTime 7, Flash 8 |
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