Add risks for a project

Add a risk to a project to identify, analyze, prioritize, plan, and track a risk during any phase of the project life cycle. Assess potential problems and the severity of their impact to take informed decisions about the project.

Before you begin

Role required: it_project_manager

About this task

A risk is any uncertain event that can potentially impact the success or outcome of a project. For example, an incorrect estimate of factors like financial outlay or resource assignments can cause schedule slippage. Another example of a risk is a change in project requirements. Recording risks ensures that decision makers have all relevant information when assessing a project's progress. A project manager can add risks to a project and assess them. While adding risks, the project manager can add risks from an existing library of project risks that are applicable for their unique projects.

Procedure

1. Navigate to Project > Projects > All.
2. Select the project to which you want to add risks.
3. In the Risks related list, click New.
4. Alternatively, click Create from Library if you have the Advanced Risk plugin activated.
   1. Select the risk statements as required.
   2. Click Create Risks.
   Only the risks statements that belong to the Project category are displayed for the user.
5. On the Risk form, fill in the fields.

   Table 1. Risk form

   Field	Description
   Number	System-generated ID number with a configurable prefix.
   State	Current state of the risk. All new risks are created in the Pending state. The available states are: Pending, Open, Work in Progress, Closed Complete, Closed Incomplete, and Closed Skipped.
   Risk status	Status of the risk. It provides information on current status of the risk, whether it is achieved or mitigated or accepted. The available options are: Pending, Achieved, Not Achieved, Avoid, Mitigate, Transfer, and Accept.
   Probability	The likelihood that the event described in the risk will occur. The available options are: Absolute, High, Moderate, and Low
   Impact	Impact of the risk event on the outcome of the project.
   Estimated cost	Estimated cost the risk event generates.
   Risk rank	A value and color assigned to the risk. This value is calculated using risk probability and impact. You can configure the color and value using Risk Value Lookup. For more information, see Configure custom Risk rank and Risk value for a project.
   Risk owner	Primary resource who is responsible for monitoring and managing the risk.
   Assigned to	Primary resource assigned to work on the risk.
   Risk value	A value calculated from Risk Value Lookup. For more information, see Configure custom Risk rank and Risk value for a project.
   Due date	Requested date for the assigned resource to resolve the risk or the date on which the risk must be closed or addressed if not assigned to any resource.
   Show on project status report	Option to specify whether the risk information should be included in the project status report.
   Task	Project to which this risk belongs.
   Short description	Brief description of the event and its potential impact on the success of the project. If the risk is created from the risk library, then this field displays the Risk Statement name.
   Description	Details of the event and its potential impact. If the risk is created from the risk library, then this field displays the Risk Statement short description.
   Actual cost	Cost generated by the risk event. This information gets added when and if the event occurs.
   Mitigation plan	Brief description of efforts taken to mitigate the risk.

   Note:

   The Risk Assessment Summary section only appears when the Enable Advanced Risk PPM Integration property is enabled.

   Table 2. Risk Assessment Summary section in the Risk form

   Field	Description
   Inherent risk	This field gets auto-populated with the risk scores when the risk assessor assesses the inherent risk.
   Elevated to enterprise risk	This option gets selected automatically when the risk is elevated to enterprise risk by the project manager.
   Residual risk	This field gets auto-populated with the risk scores when the risk assessor assess the residual risk.
   Enterprise inherent risk	This field gets auto-populated with the risk scores when the risk assessor assesses the enterprise inherent risk.
   Enterprise residual risk	This field gets auto-populated with the risk scores when the risk assessor assesses the enterprise residual risk.

6. Click Submit.

What to do next

• Assess the risks that have been added. For more information, see Assign project risks to stakeholders for assessment
• Convert an existing risk to an issue, decision, action, or request change and close the risk. For more information, see Convert one RIDAC (Risk, Issue, Decision, Action, and Request Changes) record to another for a project.
• Associate the risk with existing issues so you can track dependencies and recognize trends for the future. For more information, see Associate existing RIDAC (Risks, Issues, Actions, Decisions, and Request Changes) records for a project.

• Configure custom Risk rank and Risk value for a project
  Configure custom risk rank and value scores (such as High-Medium, Medium-Low, or Absolute-Low) to rate the impact and probability factors for a risk.