Outputs of Risk Identification: From Documentation to Reporting

Identifying Risks is a critical process in Project Risk Management, which involves recognizing and documenting potential events that could negatively or positively impact the project's objectives.

This section explores the outputs of the risk identification process, including updates to project documents, the risk register, and the risk report. These outputs provide a comprehensive record of identified risks, potential responses, and the overall risk profile of the project. They serve as valuable resources for managing and mitigating risks throughout the project lifecycle.

The process of identifying risks interacts with other project management processes in several ways. For instance, the risks identified during this process can influence decision-making in areas such as project scope management, schedule management, and cost management. Similarly, the risk register and risk report generated during this process can inform the planning, execution, and control phases of the project. Ultimately, effective risk identification contributes to the successful completion of the project, ensuring that potential issues are anticipated and addressed proactively.

Learning Objectives

  • Understand the importance of updating project documents, including the assumption log, issue log, and lessons learned register during the Identify Risks process.
  • Recognize the role and key components of the risk register in documenting identified risks, potential risk owners, and potential risk responses.
  • Understand the process of identifying risks and the additional data that can be recorded for each identified risk.
  • Understand the purpose and progressive development of the risk report throughout the Project Risk Management process.
  • Identify the types of information included in the risk report and how it may vary based on the reporting requirements outlined in the risk management plan.

Project Documents Updates

I recall a time when I was managing a project to develop a new mobile application. We were in the early stages of the project, and everything seemed to be going smoothly. However, as we delved deeper into the project, we started to encounter various risks. It was then that I realized the importance of updating project documents during the Identify Risks process in project risk management.

This process was not just about ticking off a box in our project management checklist. It was about ensuring that all relevant information was captured and available for reference. This practice facilitated effective risk identification and management, allowing us to anticipate potential issues and plan accordingly.

The assumption log is a key document updated during the Identify Risks process. It records project assumptions and constraints, which can influence the project's risk profile. As new assumptions are identified or existing ones change, the assumption log is updated accordingly.

The issue log is another important document updated during the Identify Risks process. It records project issues, which can be potential sources of risk. Any new issues discovered or changes to existing issues should be promptly recorded in the issue log.

The lessons learned register is also updated during the Identify Risks process. It captures effective techniques used in identifying risks, providing valuable insights for future risk identification efforts. By updating the lessons learned register, project teams can improve their risk identification performance in later phases or other projects.

In conclusion, updating project documents during the Identify Risks process is not just a task to be completed; it's a critical practice in project risk management. It ensures that all relevant information is captured and available for reference, facilitating effective risk identification and management.

Reflecting on my experience with the mobile application project, I can attest to the importance of this practice. It was our diligent updating of project documents that allowed us to identify and manage risks effectively, ensuring the successful completion of the project. This experience underscored the importance of this practice in project risk management.

Which of the following project documents is typically updated during the Identify Risks process?
  1. Project charter
  2. Assumption log
  3. Project schedule
  4. Cost estimates
B) Assumption log

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Risk Register

The risk register is a crucial document in project risk management. It records details of identified individual project risks, including their descriptions, potential risk owners, and potential risk responses. The risk register is updated as Perform Qualitative Risk Analysis, Plan Risk Responses, Implement Risk Responses, and Monitor Risks processes are conducted throughout the project.

The amount of risk information in the risk register can vary depending on the size and complexity of the project. Regardless of its size, the risk register is created during the Identify Risks process, with each risk given a unique identifier and listed in the register.

A structured risk statement is often used to differentiate risks from their causes and effects. Potential risk owners and potential risk responses, if identified during the Identify Risks process, are also recorded in the risk register. These are confirmed during the Perform Qualitative Risk Analysis and Plan Risk Responses processes, respectively.

Additional data can be recorded for each identified risk based on the format specified in the risk management plan. This may include a short risk title, risk category, current risk status, causes and effects on objectives, risk triggers, Work Breakdown Structure (WBS) reference of affected activities, and timing information.

The risk register plays a vital role in documenting the outcomes of various risk management processes. It provides a comprehensive view of the project's risk landscape, enabling effective risk management and decision-making.

What is the primary purpose of a risk register in project risk management?
  1. To record the project schedule
  2. To record details of identified individual project risks
  3. To record all the stakeholders involved in a project
  4. To provide a detailed cost estimate of the project
B) To record details of identified individual project risks

Risk Report

The risk report is a crucial output of the Identify Risks process in Project Risk Management. It provides comprehensive information on the sources of overall project risk and summary information on identified individual project risks. The risk report is progressively elaborated throughout the Project Risk Management process, with each subsequent process adding more detail and refinement.

Upon completion of the Identify Risks process, the risk report includes sources of overall project risk, indicating the most significant drivers of overall project risk exposure. It also provides summary information on identified individual project risks, such as the number of identified threats and opportunities, distribution of risks across risk categories, and metrics and trends.

As the project progresses through the Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses, Implement Risk Responses, and Monitor Risks processes, the results of these processes are incorporated into the risk report. This ensures that the risk report provides a comprehensive and up-to-date view of the project's risk landscape.

The risk report may also contain additional information based on the reporting requirements outlined in the risk management plan. This could include details on risk response strategies, risk owners, and the impact of risks on project objectives.

In summary, the risk report serves as a vital tool for communicating risk information to project stakeholders, enabling informed decision-making and effective risk management.

What is the primary purpose of a risk report in project risk management?
  1. To provide a detailed schedule of all project activities
  2. To provide information on the sources of overall project risk and summary information on identified individual project risks
  3. To list all the stakeholders involved in a project
  4. To provide a detailed cost estimate of the project
B) To provide information on the sources of overall project risk and summary information on identified individual project risks