Part 2 of 2: Overall Project Risk Limits (Part 1 of 2 is on Individual Task Risk Tolerance)!
As mentioned in my original post (Part 1, regarding Individual Task Risks), I believe that almost any Project Plan can be “balanced” if you ignore the Risks. But most high-risk plans would not make sense if team performance was highly scrutinized, right? So, what is the answer?
Here is Part 2. Overall Project Risk limits (relative to Project Cost and/or Schedule) can be established and continually (i.e., periodically) analyzed, for creation of the original baseline plan and monitoring and controlling the Project throughout the PLC (Project Life Cycle). There are only 2 methods for doing this, and simply adding up risk severity scores IS NOT one of them. However, both viable methods use the risk matrix data.
The output shown in the graphic provides measurable data for Overall Project SRA. Here are some items to note:
If you like this post, please consider my book on “Achieving Epic Business Results with Strategic Project Management” – a link is in the rtconfidence.com website. Also, Post 1 of 2 can be found on the Blog page.