How shall I prioritize the risks of a project??

[Majid]

As we know risks are calculated as (downward) mean variance of an
uncertain event. On the other hand, we estimate the expected value -
say expected cost - of an event and got another criterion of an
(unwanted) event. We can sort them using Risk Matrix but I don't
exactly know how we shall prioritize them. Does it depend on the
project context and involved people's opinions? High risk, high
expected cost are more of concern in the first place. But how to choose
between one high and the other low cases?

I'll be happy to learn about anybody's experiences.

Regards,

Majid

 

[Rob Schneider]

Ooo. That's a loaded question.

I guess my first advice is that you take look at the book "Modelling
Complex Projects" by Terry Williams, ISBN 0-471-89945-3 ... specifically
chapter 5.

My view it's not about prioritisation. It's about doing a risk
assessment and understanding the risk ... which is a both impact and
probability. If the uncontrolled risk is "too high", then come up with
mitigation strategies to reduce either or both probability and impact.
Turn those strategies into tasks or projects in your plan, fund them
(assuming cost is commensurate with risk), and do them as project
deliverables (independent of the risk catalog). And if you don't do
them, then by definition you are accepting the risk (which is an ok too
.... can't eliminate all risk).

 

[davegb]

As we know risks are calculated as (downward) mean variance of an
uncertain event. On the other hand, we estimate the expected value -
say expected cost - of an event and got another criterion of an
(unwanted) event. We can sort them using Risk Matrix but I don't
exactly know how we shall prioritize them. Does it depend on the
project context and involved people's opinions? High risk, high
expected cost are more of concern in the first place. But how to choose
between one high and the other low cases?

I'll be happy to learn about anybody's experiences.

Regards,

Majid

Usually, they can be ranked by Risk Event Status. See the PMIBOK for
more on that. I always caveat this kind of advice by saying that no
"objective", purely numeric tool, is a good substitute for a fully
functioning brain.

Hope this helps in your world.