What factors do you consider when assessing project risks?

1 Internal Factors

Internal factors are those that originate from within your project team, organization, or stakeholders. They include the availability and capability of resources, the clarity and alignment of expectations and requirements, the communication and collaboration among team members and stakeholders, the change management and governance processes, and the organizational culture and values. You should evaluate how these factors can influence your project's performance, deliverables, and outcomes, and how you can mitigate or leverage them.

2 External Factors

External factors are those that originate from outside your project team, organization, or stakeholders. They include the market and industry trends, the customer and competitor behavior, the legal and regulatory environment, the social and environmental issues, and the technological and innovation changes. You should monitor how these factors can impact your project's viability, feasibility, and desirability, and how you can adapt or respond to them.

3 Qualitative Factors

Qualitative factors are those that describe the nature and characteristics of the risks, such as the probability and impact, the cause and effect, the source and category, and the status and trend. You should use qualitative methods, such as brainstorming, interviews, surveys, checklists, or risk registers, to identify and document the risks, and to assign ratings or scores to them based on their likelihood and severity.

4 Quantitative Factors

Quantitative factors are those that measure the numerical and statistical aspects of the risks, such as the cost and schedule variance, the expected value and contingency, the sensitivity and scenario analysis, and the risk exposure and return. You should use quantitative methods, such as estimation techniques, simulation models, decision trees, or risk matrices, to analyze and quantify the risks, and to determine the optimal level of risk tolerance and response.

5 Interrelated Factors

Interrelated factors are those that affect or are affected by other risks, creating positive or negative dependencies, synergies, or trade-offs. You should consider how the risks are connected or correlated, and how they can amplify or reduce each other's effects. You should also identify and manage the critical risks that have the most significant influence on your project's success or failure.

6 Dynamic Factors

Dynamic factors are those that change or evolve over time, requiring constant review and update of your risk assessment. You should consider how the risks can vary or fluctuate depending on the project phase, the stakeholder feedback, the environmental conditions, or the emerging opportunities or threats. You should also establish and follow a risk management plan that defines the roles and responsibilities, the tools and techniques, the frequency and format, and the metrics and reporting of your risk assessment activities.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?