Risk Categories

Risk categories are a way to systematically identify risks and provide a foundation for understanding. When determining and identifying risks, the use of risk categories helps improve the process by giving everyone involved a common language or basis for describing risk.

Risk categories should be identified during this process and documented in the risk management plan. These categories will assist you in making sure the next process, Identify Risks, is performed effectively and produces a quality output. The following list includes some examples of the categories you might consider during this process (or modify based on previous project information):

■ Technical, quality, or performance risks

■ Project management risks

■ Organizational risks

■ External risks

You can go about describing categories of risk in a couple of ways. One way is simply listing them. You could, and should, review prior projects for risk categories and then tailor them for this project.

You could also construct a risk breakdown structure (RBS), which lists the categories and subcategories. Figure 6.1 shows a sample of an RBS.

FIGURE 6.1 Risk breakdown structure

FIGURE 6.1 Risk breakdown structure

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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