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Guide to risk
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1
Introduction
2
Methodology in summary
3
Client's business objectives and risks
4
Client's project objectives and risks
5
Objectives of key suppliers
6
Risk register
7
Action plan for prioritised risks
8
Regular review of risk register
9
Dealing with consequences of risks
A1
Example
'Value Hierarchy'
A2
Example Project Charter/Protocol
A3
Example Risk Register

A1

Guide to risk management

Appendix 1:
An example of a 'Value Hierarchy'

 

Notes

  1. This is primarily a method for determining the relative importance of different project objectives (see section 4.2). Each of the secondary and tertiary objectives should be weighed relative to the other secondary and tertiary objectives. It is suggested that this may be most easily accomplished by scoring individual objectives out of a hundred where 1 is "not important" and 100 is "vitally important".

  2. You would not expect to include any objectives whose importance ranked below say, 10 as, on the scale of importance, this would probably not be worth worrying about. If you feel this is not the case, it probably signals the need to increase the importance of the relevant objective.

  3. Risks that are capable of preventing the achievement of the project objective(s) should be listed under the secondary (rather than tertiary) objectives.

  4. If a risk has potential impact on the achievement of more than one of the project objectives (secondary or tertiary) there is no need to consider that risk more than once. Its potential effect on more than one objective can be simply stated but it should be referred to only once in any risk register so that only one action plan is prepared to deal with its control or elimination.

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