In common terms “Risk” can be defined as an uncertain event or condition that can have effects on the working of a project. As it is an unexpected event it can disrupt the normal workflow of a process and if you are a project manager planning the project cycle, you must always take in to account the “risk” factor. Furthermore, the world we live in is full of uncertainty where no one can predict what is going to happen in the future and it can surprise you at any moment & catch you unaware. When this context is applied to project management, it is known as project risk. Thus, it is a critical aspect for the successful completion of a project.

It is seen that project managers who identify project risks very well do the following things:

First, project managers clarify what they mean by project risk. Second, they use a variety of risk identification tools and techniques, not just one. Third, they write the risks in a consistent format. Fourth, project managers engage the right stakeholders. Fifth, they look beyond the obvious risks. Look around the corners. Lastly, project managers capture their project risks in a central repository.

You are probably wondering:

How do I actually do this?

How do I identify & capture project risks in a manner that creates value for my projects?

Here we will understand how to assess “Project Risk”?

It is possible to assess “Project Risk” by conducting a risk assessment. Below we will highlight all the possible scenarios where risk can take place and from there, we can look at the effects of each risk event. So, here are four steps to assess risk:

1. Identify the risk event

First, create a list of the possible events that may occur without your knowledge. And this can be unexpected & sudden and can make you change plans. Furthermore, discuss with the team members all possible outcomes to get different perspectives.

2. Identify the time of risk event

Secondly, highlight the time a risk event is expected to occur. This will further help you take pro-active decisions keeping the project work in mind. And the likelihood of a risk event happening will help you prepare an alternative.

3. Probability of a risk event

Third step, after creating a list of all possible risks for a project, start marking them in the order you expect it to occur; for some risks there is high chance of probability while for others it might be medium or low. The decisions for risk in a process depends on the probability factor if it is high or low.

4. Impact of risk event

Last but not the least, it is also necessary to list the impact of a specific risk event which it can have on a project; the risk can affect the project delivery dates, increase project scope. It can also create budget issues & disturb the workflow of the project resources. Eventually, rank these impacts in the order of severity so that it can help you make informed decisions.