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The Lifecycle of a Project Risk

 

Risk Doctor Briefing

SERIES ARTICLE

Dr David Hillson, PMI Fellow, HonFAPM, FIRM

The Risk Doctor Partnership

United Kingdom

 



As we manage individual project risks, they pass through a lifecycle which can be described using a set of status values. These can help us to understand where each risk is in its lifecycle, so that we can determine what we should do next. The following set of standard status values might be useful:

  • Unknown: A risk that has not yet been identified.
  • Draft: A proposed risk that has not yet been validated.
  • Rejected: A Draft risk that is not valid.
  • Escalated: A Draft risk that is outside the scope of the project and that should be managed at program level or elsewhere in the organisation.
  • Active: A valid risk with a probability of occurrence greater than zero and that will impact one or more project objective if it occurs. An Active threat can affect the project negatively, while an Active opportunity has a potential positive effect.
  • Deleted: A risk that is no longer valid, perhaps resulting from a change in the project’s strategy, environment, objectives, or scope.
  • Expired: The time window in which the risk could have occurred has passed, so the risk no longer needs to be considered.
  • Closed: A risk (threat) for which the response has been fully effective and the risk can no longer affect the project.
  • Occurred: The risk has happened and the impact is being experienced.

Using these status values, we can describe the lifecycle of a typical individual project risk:

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How to cite this paper: Hillson, D. (2018).  The Lifecycle of a Project Risk, Risk Doctor Briefing; PM World Journal, Volume VII, Issue IX – September.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/09/pmwj74-Sep2018-Hillson-lifecycle-of-project-risk-briefing-article.pdf



About the Author


Dr David Hillson, HonFAPM, PMI-Fellow, CFIRM, CMgr, FCMI

The Risk Doctor
United Kingdom

 

 

 
Known globally as The Risk Doctor, David Hillson leads The Risk Doctor Partnership (www.risk-doctor.com), a global consultancy offering specialist risk services across the world.

David has a reputation as an excellent speaker and presenter on risk. His talks blend thought-leadership with practical application, presented in an accessible style that combines clarity with humour, guided by the Risk Doctor motto: “Understand profoundly so you can explain simply”.

He also writes widely on risk, with eleven major books, and over 100 professional papers. He publishes a regular Risk Doctor Briefing blog in seven languages to 10,000 followers, and has over 4000 subscribers to the RiskDoctorVideo YouTube channel (www.youtube.com/RiskDoctorVideo).

David has advised leaders and organisations in over fifty countries around the world on how to create value from risk based on a mature approach to risk management, and his wisdom and insights are in high demand. He has also received many awards for his ground-breaking work in risk management over several decades.

To see other works previously published in the PM World Journal by Dr David Hillson, visit his author showcase at http://pmworldlibrary.net/authors/dr-david-hillson/