Risk Categories
1. Technical
Requirements, Technology, Quality
2. External
Suppliers, Regulators, Market
3. Organizational
Resourcing, Funding
4. Project Plan
Estimating, Planning, Controlling
Risk Break Down Structure (RBS)
RBS could be defined as a "hierarchically organized depiction of the identified project risks arranged by risk category."
The purpose of the risk breakdown structure (RBS) is to encourage people to think of risks that may originate outside of their “stovepipe.” Most people will think of the specific risks, often technical risks, that are impeding their getting their specific assignment done, and it is good to identify those risks. However, project team members have been involved with the project and have seen risks to success arising from other causes. In particular, external elements including regulators or the customer may be causing problems with the project. And there are barriers to success from the performing organization as well. These particular risks may be unpopular to discuss and to recognize, so the RBS helps people confront those sources of risks.
The risks should be discussed in a structured way, such as:
Because of (some cause that is true),
a risk (an uncertain event or condition that, if it occurs will affect an objective in a positive or negative way),
leading to (an impact, sometimes a range of possible impacts on a project objective).
Distinguishing a risk from its cause and impact is important so that a mitigation of the true risk can be developed. For instance, do not say; “We have 12 schedule risks.” We might say, we have 4 external risks that affect schedule if they were to occur, distinguishing the source of the risk from its impact. Also, do not say; “Our risk is that the mineral deposit is in an inaccessible location in a mountainous jungle.” That fact may be a cause of logistical risks, but it is not an uncertainty at all.
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