Introducing Risks
A risk is an uncertain event or condition that, if it occurs, can have a positive or negative impact on the objectives of a project, programme, or portfolio.
Key Characteristics:
- Uncertainty: Risks involve uncertainty; they represent potential future events or conditions that may or may not happen.
- Impact: Risks can affect objectives, and this impact can be positive (opportunity) or negative (threat). The impact can be on scope, time, cost, quality, or other critical aspects of the work.
- Proactive Management: Effective risk management involves identifying risks in advance, assessing their likelihood and potential impact, and planning appropriate responses to either mitigate (for negative risks) or exploit (for positive risks) their effects.
In Power Framework PPM, risks registers can be maintained at each level of the entity hierarchy:
| Level | Scope | Nature | Management |
| Project | Project risks are specific to individual projects. | These risks are typically more detailed and concrete, relating to the specific tasks, resources, and timelines of the project. Examples of project risks include delays in delivery, budget overruns, resource shortages, technical challenges, or changes in project scope. | Project managers are responsible for identifying, analyzing, and mitigating project risks. The focus is on ensuring that the project meets its objectives on time, within budget, and to the required quality standards. |
| Programme | A programme as a collection of related projects defines its own risks, as those that affect the programme as a whole or multiple projects within it. | Programme risks are broader and may include risks related to dependencies between projects, alignment with strategic objectives, stakeholder engagement, or the realization of expected benefits. For instance, if one project in the programme falls behind schedule, it could delay the entire programme. | Programme managers oversee the risks across all projects within the programme, ensuring that the interdependencies are managed, and that the overall programme goals are achieved. |
| Portfolio | Portfolio risks pertain to the portfolio's entire set of investments in projects and programmes. | Portfolio risks are strategic in nature and can affect the organisation's ability to achieve its long-term objectives. These risks include issues related to resource allocation across projects and programmes, alignment with organisational strategy, market conditions, regulatory changes, and overall financial performance. | Portfolio managers or executives are responsible for balancing the portfolio, managing overall risk exposure, and optimizing return on investment. |
Risk data is shown in Status Highlight Reports and the Portfolio Risk dashboard.
Risk Form
| Field | Comment |
| Title | The name of the Risk. |
| Category | The category the Risk falls under. |
| Assigned To | The person or team the Risk is assigned to. |
| Vendor | The vendor associated with the Risk. |
| Due Date | The date the Risk is due to be reviewed (if this date is in the past, it will be reported as overdue in Portfolio risk dashboards and Project Status reports). |
| Closed Date | If the risk is closed, the date of the Risk’s closure (consider de-activating it to hide it from reports and the Active Risks view). |
| Escalation Level |
You can escalate this item to Programme or Portfolio level by choosing the corresponding level in the drop-down menu. As a result, it will be shown in reports associated with these higher entities. |
| Risk Treatment |
How the Project will treat the Risk, from a selection of options: Avoid, Reduce, Contingency, Transfer, Accept, Share, Exploit. |
| Likelihood |
A rating of the Risk’s likelihood on a scale from Rare (1) to Almost Certain (5). |
| Consequence |
The consequence of the Risk. |
| Rating |
The overall score is derived from the likelihood and consequence of the Risk. The Rating field cannot be altered or edited once saved. |
| Cost Exposure |
The amount of money that could be lost as a result of the Risk. |
| Time Exposure |
The amount of time that could be lost due to the Risk. |
| Quality Exposure |
The potential quality impact associated with the Risk. |
| Description |
The detailed information about the Risk. |
| Mitigation Plan |
Details of how the Risk will be mitigated. |
| Connected Issue |
Select if this Risk has resulted in an Issue (will be filled in if Risk is converted to Issue via flow as described below). |
Converting a Risk to an Issue
A workflow is available to generate an Issue record for a Risk.
Navigate to the Risk form and click Flow at the top, then select Convert Risk to Issue.
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Give the flow a few seconds to execute, and you will see the details of the Connected Issue being filled in (click Refresh at the top). |
You can now click on this Issue to navigate to it and maintain it further.