Risk identification techniques and mitigation techniques in the present dynamic scenario of the industry is described here. Also, the recent research area and probable topics that one could choose as a Ph.D. topic are described briefly.

1. By
DEBASHISH DAS
ME IN PRODUCTION MANAGEMENT
JADAVPUR UNIVERSITY
DATE: 09.05.2018

2. What is Risk?
 A risk is anything potentially that could impact your
project’s timeline, performance or budget.
 A dictionary definition of risk is “the possibility of loss
or injury”.
 Project risk involves understanding potential
problems that might occur on the project and how
they might impede project success.
 Risk management is like a form of insurance; it is an
investment.

3. Project Risk Classification
According to the nature of risk-
PURE RISK
BUSINESS RISK
 According to the impact of risks on a project are
classified as-
 Positive risk
 Negative risk

4. WHAT IS PROJECT RISK MANAGEMENT?
 Project risk management is the art and science of
identifying, assigning, and responding to risk
throughout the life of a project and in the best
interests of meeting project objectives.
 The goal of project risk management is to minimize
potential risks while maximizing potential
opportunities.

5.  The Importance of Project Risk Management
 Well-run projects appear to be almost effortless, but a
lot of work goes into running a project well.
 Project managers should strive to make their jobs look
easy to reflect the results of well-run projects.

6. Risk Tolerance - Risk tolerance defines the attitude or
approach that the organisation or project manager has towards
the risk.
There are three types of risk tolerance-
 Risk averse- With the Risk-Averse Approach, the
organisation or project manager has an avoidance
mentality.
 Risk seeker- With this approach, the Risk seeker is
actively looking for risk and is willing to take risk.
 Risk neutral- In this approach, the Risk neutral person is
willing to take the risk but only if it favours them.

7. Risk Register
A document that is created in the identifying risk process.
It is a living document that needs continuous updates.
 It contains the following information:
 Major risks that may occur on the project.
 Triggers that help identify when a risk event may occur
 Results from risk analysis
 Responses of these risk events should they occur
 Risk owners or people who have to take action when risk
events occur

8. RISK REVIEWS
The purpose of this review during the execution phase
of the project is two folds:
 Check for the risk outlined in the risk register. It is to
ensure that their probabilities, impact and responses
are still valid and accurate.
 Look out for new risks that were not identified
previously.

9. PROJECT RISK IDENTIFICATION
TECHNIQUES

10. BRIANSTORMING
 Brainstorming is a situation where a group
of people meet to generate new ideas and
solutions around a specific domain of interest
by removing inhibitions.
People are able to think more freely .
They may suggest many spontaneous new
ideas as possible.

11. Interviews and self-assessments
 Interviewing your staffs about the recent ongoing
projects and collecting their hindrance and problems of
work will help you to formulate new ideas.
Also evaluate yourself for the progress of schedule and
prepare the contingency plan for smooth transition and
completion of project.

12. Risk surveys
A basic risk survey is undertaken in order to evaluate
physical risks at a site and identification of areas where
the risk may be reduced.
 A comprehensive survey
report is, including photographic
evidence and recommendations,
where appropriate.

13. Event inventories or loss data
 Track and report on loss events, perform main cause
analysis and establish accountability across your
enterprise.
 Manage the loss event lifecycle to understand where
and how your risk management program needs to be
strengthened.
 Automate the review and analysis workflow of loss
events.

14. Facilitated workshops
 Facilitated Workshops are a process in
which a neutral facilitator, with no
stake in the outcome of the workshop,
enables a group to work together to
achieve an agreed goal, whether that
be solving a problem, building a plan,
gathering requirements or making a
decision.

15. Root cause and Checklist analysis
 It is designed to help you methodically identify the root
cause of a given problem or issue, by asking a series of
questions, and by considering the problem from different
angles.
 It allows you to challenge
first-reaction thinking and
to consider issues and
problems in light of current
business realities.

16. SWOT ANALYSIS
SWOT analysis is a process that identifies an
organization's strengths, weaknesses,
opportunities and threats.

17. Influence diagrams
This simple influence diagram
depicts a variable describing the
situation:
A decision - What do we do?
A chance variable - What's the outcome?
A final valuation - How do we like it?
 It depicts the key elements, including decisions,
uncertainties, and objectives as nodes of various shapes
and colours.

18. EXPERT JUDGEMENT
It’s a technique in which judgment is
made based upon a specific set
of criteria and/or expertise that has been
acquired in a specific knowledge area or
product area.
Typically expert judgment requires an
expertise that is not present within
the project team.
It is common for an external group or
person with a specific relevant
knowledge base to be brought in for a
consultation.

19. Assumption Analysis
Used by project team members to minimize risks
involved in making assumptions during the process of
planning a particular project.
The process in which this analysis takes place is fairly
straightforward, yet is essential to minimizing risk.
Assumptions analysis is a process that likely should be
repeated throughout a project’s life.

20. RISK MANAGEMENT STRATEGIES
 SHARE
Transfer all or part of the opportunity to a third party using outsourcing experts
in this field.

Exploit
Make sure to achieve this risk or opportunity and invest it to increase
institution revenues and developing performance, and make sure it happens by
editing some of the project’s activates.
 Enhance
Increase the possibility of making the opportunity happens or increasing its
effect.
 Acceptance
Which is a strategy that can be followed in both positive and negative risk
situations, the error is accepted and there is no action until it happens. This
strategy is applied as a final option.
POSITIVE RISK MANAGEMENT STRATEGY

21. Negative Risk Response Strategies
 Escalate:
when you identify a risk and
find that you cannot manage it
on your own .
Contact to your PMO or Top
management to take necessary
action.you lack the authority, resources or
knowledge required for a response.

22. AVOID
 It is done by changing the project management plan, by
changing the project scope, or by changing the
schedule.
 This is a desired risk response strategy mainly used for
critical risks. This is the best technique for all risks;
however, it cannot be used most of the time.

23. Mitigate
 This strategy decreases the severity of the risk.
 lessen the gravity of risk.
 Example
You find that a team member may
leave for a certain duration during
the peak of your project. This is a
negative risk.
To minimize the impact of his
absence, you find another employee
with similar qualifications from your
organization

24. TRANSFER
 You use this strategy when you are lacking skills or resources to
manage the risk or you are too busy to manage it.
 In the transfer risk response strategy, you transfer the risk to a
third party to manage it.
 Transferring a risk can cause a secondary risk. For example,
although you have given a third party the responsibility of
managing the risk, you are responsible for the guarantee with the
client.

25. Accept
 Here you take no action to manage the risk except
acknowledging it.
 You use this strategy when the risk is not critical, if it is not
possible or practical to respond to the risk through the
other strategies, or if a response is not warranted by the
importance of the risk. Passive acceptance you do nothing
except note down the risk in the risk register.

26. PROJECT RISK MANAGEMENT AREAS FOR
FUTURE IMPROVEMENT
 Integration of Risk Management
Risk management should become fully integrated at
both operational and strategic levels.
Risk management must be seen as an integral part of
doing business rather than being conducted as an
optional additional activity.

27. Increased Depth and Breadth
 The depth of analysis could be improved by-
Development of better tools and techniques with
improved functionality.
Advanced information technology capabilities to
enable effective knowledge management and learning
from experience.
Development of existing techniques.

28. The breadth analysis is enhanced by:
 Inclusion of opportunity within the definition of “risk”,
and ensuring that the risk process covers both threats
and opportunities.
 Measurement of impact against all types of objectives,
including performance, quality, compliance,
environmental or regulatory and “soft” objectives.
 Expansion of the scope of risk processes to include
program risk management and business risk
assessment.

29. Behavioural Aspects
 Human behaviour implementation in risk management for both in
generating input data for the risk process, and in interpreting
outputs.
 Also consider risk attitudes and their effect on the validity of the
risk process.
 A reliable means of measuring risk attitudes needs to be
developed, to identify and counter potential bias among
participants in the risk process.
 Building of risk-mature and emotionally-literate teams of people
who can understand and modify their risk attitude.

30. Risk Monitoring and Control
 Monitoring risks involves knowing their status.
 Controlling risks involves carrying out the risk
management plans as risks occur.
 Workarounds are unplanned responses to risk events that
must be done when there are no contingency plans.
 The main outputs of risk monitoring and control are
corrective action, project change requests, and updates to
other plans.