Pm586 - Risk Matrix Essay

PM586 – Week 5: RISK MATRIX

A risk matrix is a simple way of ranking, different potential projects in terms of their potential benefit and the likely risks or costs in implementing them. Some projects may be very attractive in terms of potential benefits that they offer but have serious implementation difficulties. Others may be low value in impact terms but be easy to implement tomorrow. Ideally organizations will want to choose a balanced portfolio of short and long-term, low-risk and high-risk projects. Every day an organization has to decide between what project would be the best to undertake. Risk is one of the important factors that must be considered.

Increased cost and time are a major concern in this project, the probability is low however, if it does occur the impact will be quite high, because it will definitely cause an overrun in the budget and or missed schedule. This risk can be mitigated by closely monitoring the budget against the actual cost and making sure that the project is always within the allocated cost and on schedule.

Permit poses risk because this is something that is completely out of the organization’s terrain, it has to be submitted to the local government office and they have to come out for inspections and this has to be on their own schedule and this could be out of schedule for this project, to mitigate this, the application for permits have to be submitted on time giving more than enough time to hear back from the local government.

Inclement weather, the risk is high but the impact is low, but there is little to nothing we can do about this, it is an act that cannot be controlled and all we can pretty much do is to schedule construction for summer and landscaping for spring.