Perform detailed analyses of risk identification exercise results

Risk identification is the first and a crucial step in the risk management process, particularly for the PMI Risk Management Professional (PMI-RMP) examination. Perform a detailed analysis of risk identification exercise results which can enhance the comprehension of potential risks, improve decision-making, and ultimately contribute to achieving project objectives.

Understanding Risk Identification Exercise Results

Risk identification is primarily concerned with recognizing and describing risks that could affect project objectives. This process involves the use of a variety of techniques and methods to uncover and capture risks. The risks identified are usually documented in a risk register for further analysis and treatment.

Understanding results from a risk identification exercise involves interpreting the risks outlined in the risk register in relation to the broader project context. This includes determining the likelihood of each identified risk and its potential impact on project objectives, timelines, and quality.

Analysing Risk Identification Exercise Results

Every risk recorded should be thoroughly analysed within the context of project objectives; this is the heart of risk analysis. This process defines the probability and the extent of potential outcomes derived from the identified risks.

Analysis methodologies used can be qualitative, quantitative, or a combination of both. Qualitative analysis involves comparing the relative significance of risks in terms of their potential effect and likelihood of occurring, while quantitative risk analysis attempts to numerically estimate the potential impact on project objectives.

For instance, a risk could be identified that due to resource availability issues, project timelines could be adversely affected. In qualitative analysis, one might determine that the likelihood is high and the impact is moderate. This would place the risk in the ‘Moderate – High’ zone of a risk matrix. Quantitative analysis would seek to assign actual numbers to these factors. It could be determined that there is a 70% chance of this risk occurring, with a likely delay of 2 weeks in the project schedule.

Prioritizing Risks

Once risks have been identified and analysed, they need to be prioritized. The aim is to highlight the most significant risks, so they can be addressed appropriately. This usually involves ranking the risks based on their potential impact and likelihood of occurrence.

Here, the results of the risk identification exercises would be translated into a ranked list, with risks that have the highest combined scores of likelihood and impact placed at the top. This informs the management about the most significant risks that need immediate attention.

Validating Risk Identification Exercise Results

The final part of analyzing risk identification exercise results is validating your findings. This is a critical step that confirms that the risk identification process was thorough and complete. It involves reviewing the risk register and the analyses to ensure that all potential risks were captured and evaluated accurately.

This validation process might involve peer reviews, expert consultation, and reevaluating the original risk identification exercise. If new risks are discovered or if original risk assessments are found to be inaccurate, the risk identification process may need to be revisited.

In conclusion, performing a detailed analysis of risk identification exercise results is crucial for effective risk management. It ensures that potential risks are accurately identified, analysed, prioritized, and validated. This provides a firm foundation for the subsequent steps of formulating and implementing risk response strategies. The PMI-RMP exam would deepen your understanding and equip you with practical skills in performing this analysis.