Was formal risk analysis performed When was it done in initi

Was formal risk analysis performed? When was it done (in initiation, feasibility??

Solution

As per dictionary the definition of Risk is the possibility or chance of loss or damage or injury. It can also be defined as the probability of occurrence of uncertain event in the project.

Through risk management we analyze the potential problems which may occur during the project life cycle. Different functions of project management are planning, organizing, and managing resources and its allocation, successful completion of the project.

Objective of project risk management is to minimize the effect of uncertainties or potential risks. That is why risk management planning is necessary.

Risk management is the identification, assessment, evaluation, risk prioritization and continuous monitoring. Different risk analysis tools and techniques can be used for analysis. These are market research, survey, Brainstorming, SWOT analysis (Strength, weakness, opportunity, threat), PESTLE analysis (Political, Economic, Social, Technical, Legal, Environmental, Fault tree analysis, DFMEA (Design failure mode and effect analysis), PFMEA (Process failure mode and effect analysis) etc.

Feasibility study is done at the initial stage. Viability of the project is analyzed during this phase to understand whether the project is technically feasible, cost effective or not. Evaluation of the project is being done. Risk analysis is also a critical function of the feasibility study. This is the foundation for the successful completion of the project within time frame. All the financial aspects are analyzed during feasibility study. Then it can be stated that the project is economically viable or not.