How do you identify project risks using historical data?

1 Step 1: Collect historical data

The first step is to collect relevant historical data from your own organization or external sources. You can use various types of historical data, such as project documents, reports, lessons learned, audits, reviews, surveys, benchmarks, databases, or industry standards. You should look for historical data that is similar to your current project in terms of scope, size, complexity, duration, budget, stakeholders, resources, or environment. You should also verify the accuracy, reliability, and validity of the historical data before using it.

2 Step 2: Analyze historical data

The second step is to analyze the historical data to identify patterns, trends, gaps, or anomalies. You can use various techniques to analyze historical data, such as statistical analysis, root cause analysis, trend analysis, gap analysis, or SWOT analysis. You should look for historical data that shows how previous projects performed, what risks they faced, how they managed them, what outcomes they achieved, and what lessons they learned. You should also compare the historical data with your current project data to identify similarities and differences.

3 Step 3: Identify project risks

The third step is to identify project risks based on the historical data analysis. You can use various techniques to identify project risks, such as brainstorming, checklists, interviews, questionnaires, assumption analysis, or expert judgment. You should look for historical data that indicates potential threats or opportunities for your current project, such as common risks, recurring risks, emerging risks, or unique risks. You should also consider the probability and impact of each risk on your project objectives.

4 Step 4: Document project risks

The final step is to document the project risks that you identified using historical data. You can use various tools to document project risks, such as risk registers, risk breakdown structures, risk matrices, or risk maps. You should document the following information for each project risk: description, category, cause, effect, probability, impact, priority, response strategy, owner, and status. You should also update the project risk documentation regularly as the project progresses and new information becomes available.

Using historical data is one of the most effective ways to identify project risks. It can help you leverage past knowledge, improve current performance, and plan for future scenarios. However, you should also use other sources and techniques to complement historical data and ensure a comprehensive and accurate risk identification process.

5 Here’s what else to consider

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