Example risk check list based on a risk breakdown structure
- 1. Example risk check list (based on a Risk Breakdown Structure) RBS LEVEL 0 RBS LEVEL 1 RBS LEVEL 2 EXAMPLE RISKS Could this risk affect our project? Yes No Don’t know Not applicable 1.1 Scope definition Scope changes may arise during project. Redundant scope may be discovered. 1.2 Requirements definition Client may introduce significant change during project (positive or negative). Internal inconsistencies may exist within requirements. Key requirements may be missing from formal requirement specification. 1.3 Estimates, assumptions and constraints Basis of estimating may be wrong. Planning assumptions may be invalidated during project. Imposed constraints may be relieved or removed. 1.4 Technical processes Standard processes may not meet requirements of specific solution. New processes may be required. Processes may be improved and made more effective. 1.5 Technology New technology may be developed during project lifetime. Technology changes may invalidate design. 1.6 Technical interfaces Unexpected interactions may occur at key interfaces. Data inconsistencies across interfaces may require rework. Key interfaces may be reduced. 1.7 Design It may prove impossible to meet some requirements within design limitations. Reuse of existing design elements may be possible. 1.8 Performance Final solution may not meet performance requirements. Some performance requirements may be mutually exclusive. 1.9 Reliability & maintainability Target reliability criteria may be unattainable with chosen solution. The use of innovative technology may improve reliability. Maintainability requirements may impose unacceptable design constraints. 1.10 Safety ALARP solution may impose additional cost. Changes in safety regulations may require significant redesign. 1.11 Security Security implications may be overlooked during design. Government regulations may change during project. 0. PROJECT RISK 1. TECHNICAL RISK 1.12 Test & acceptance Test protocols may reveal significant design error requiring rework. Client may withhold final acceptance for reasons outside contract. © David Hillson and Peter Simon - 2007.
- 2. RBS LEVEL 0 RBS LEVEL 1 RBS LEVEL 2 EXAMPLE RISKS Could this risk affect our project? Yes No Don’t know Not applicable 2.1 Project management Project management systems may not be adequate to support project requirements. Poor decision-making may result in inappropriate task allocation. Adoption of best practice risk process may improve project performance. 2.2 Programme/portfolio management Project may be given inappropriate priority within the programme. Other projects may divert key resources. Other projects may be cancelled and release resources. 2.3 Operations management Design may expose weaknesses in existing products or processes. Business-as-usual demands may reduce project funding or contingency. 2.4 Organisation Reorganisation may impact project organisation (negatively or positively). Changes in corporate structure may affect project (negatively or positively). 2.5 Resourcing Key resources may be unavailable when required. Specific skills may not be available when required. It may be possible to recruit existing subcontract staff permanently. 2.6 Communication The client’s requirement may be misunderstood. Project reporting needs may change during project. Key stakeholder interests may change (positively or negatively). 2.7 Information Client may fail to provide required information on time. Client-supplied information may be inadequate to support project. 2.8 HS&E Health & safety legislation may change during the project. An accident or incident may occur delaying the project. 2.9 Quality The number of defects found during integration may not match expectations (higher or lower). Quality circles may result in significant effort reduction. Effective quality management may reduce rework. 2. MANAGEMENT RISK 2.10 Reputation Corporate reputation incident may damage support for the project. Senior management may lose confidence in project team. Improved reputation may increase availability of funds and resources. 3. COMMERCIAL RISK 3.1 Contractual terms & conditions Client standard terms may prove unacceptably onerous. Contractual terms may contain internal inconsistencies. Harmonised client/subcontractor terms may reduce risk exposure. © David Hillson and Peter Simon - 2007.
- 3. RBS LEVEL 0 RBS LEVEL 1 RBS LEVEL 2 EXAMPLE RISKS Could this risk affect our project? Yes No Don’t know Not applicable 3.2 Internal procurement Other departments may not deliver as expected. Required skills may not be available from other departments. Internal support may increase as the project progresses. 3.3 Suppliers & vendors A key supplier may go out of business. Mergers between suppliers may erode competitiveness. Vendors may be able to deliver ahead of schedule. 3.4 Subcontracts Key subcontractors may refuse to work together. Subcontract staff may take industrial action (strike). Partnering with selected subcontractors may improve working relationships. 3.5 Client/customer stability Client may change business focus and withdraw support for project. Changes in client personnel may require additional project management effort. Client may be bought out or merge with a more supportive company. 3.6 Partnerships & joint ventures Our partner may have competing commercial interests. The joint venture may break up. 4.1 Legislation Changes in legislation may impose changes in the solution (positive or negative). Legal requirements may add unforeseen design requirements. 4.2 Exchange rates Exchange rates may change during the project (favourably or unfavourably). Key suppliers may invoice in foreign currency. 4.3 Site/facilities Site access may prove more difficult than expected. Required facilities may not be available on site. New transport arrangements may ease project logistics. 4.4 Environmental/ weather Weather may be unseasonable (better or worse than expected). Unexpected environmental conditions may affect progress (positively or negatively). 4.5 Competition A key competitor may launch a competing product and invalidate the project. Key staff may be poached by competitors. Key competitor may withdraw from the market. 4. EXTERNAL RISK 4.6 Regulatory Regulatory requirements may impose unexpected design constraints. Significant changes in regulation may occur during the project (positive or negative). © David Hillson and Peter Simon - 2007.
- 4. RBS LEVEL 0 RBS LEVEL 1 RBS LEVEL 2 EXAMPLE RISKS Could this risk affect our project? Yes No Don’t know Not applicable 4.7 Political Political factors may influence senior management support for the project. A change in government may result in changed priorities or legislation (positively or negatively). 4.8 Country Local resources may lack the required skills. Currency instability may undermine the business case for the project. Local government interest in the project may change (positively or negatively). 4.9 Social/demographic Changing social imperatives may impose additional requirements. Public perception of the project may change (positively or negatively). 4.10 Pressure groups Extremists may disrupt project progress. Lobby groups may promote the cause of the project. 4.11 Force majeure Force majeure event may occur, disrupting the project. Occurrence of force majeure may create an opportunity to address underlying issues. © David Hillson and Peter Simon - 2007.