Managing threats and opportunities in risk treatment - Revision history

TheisRS: /* Limitations */

2023-04-02T14:48:59Z

Limitations

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	Some of the recognized tools would be a SWOT Analysis, Root Cause Analysis, Risk Register or a Probability Impact Matrix. Depending on the project, some tools may be more advantageous to use and it is the project manager's responsibility to ensure that he use the tools that make the most sense for him.		Some of the recognized tools would be a SWOT Analysis, Root Cause Analysis, Risk Register or a Probability Impact Matrix. Depending on the project, some tools may be more advantageous to use and it is the project manager's responsibility to ensure that he use the tools that make the most sense for him.


	~~DO NOT LOOK AT THIS:~~
	~~Ref:~~

	~~<ref name=Doing> Geraldi, Joana; Thuesen, Christian; Oehmen, Josef; Stingl, Verena. ''"Doing Projects"'', 2022. </ref>.~~

	== Annotated Bibliography ==		== Annotated Bibliography ==

TheisRS at 19:49, 29 March 2023

2023-03-29T19:49:15Z

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	Accepting or ignoring the opportunities is done when the risk has a minor impact on the project. The existence of the opportunity is acknowledged but no proactive action is planned <ref name=PMI/>.		Accepting or ignoring the opportunities is done when the risk has a minor impact on the project. The existence of the opportunity is acknowledged but no proactive action is planned <ref name=PMI/>.

			[[File:Priority_of_The_Response_Strategy_for_Threats_and_Opportunities.png\|right\|thumb\|350px\|Figure 4: Priority of The Response Strategy for Threats and Opportunities <ref name=Hillson/> ]]

	'''Escalate'''		'''Escalate'''

	Escalation is used when a project team agrees that the threat is outside the scope of the project or when the action exceeds the project manager's authority <ref name=PMI/>. This could, for example, be change in laws that could have an effect on the project but the project team are not able to do any actions against it.		Escalation is used when a project team agrees that the threat is outside the scope of the project or when the action exceeds the project manager's authority <ref name=PMI/>. This could, for example, be change in laws that could have an effect on the project but the project team are not able to do any actions against it.


	Some project management theories exclude the Escalate strategy since in every project you cannot any take actions against them besides identify the risks and recognize that they are outside the scope of the project. This applies to both threats and opportunities.		Some project management theories exclude the Escalate strategy since in every project you cannot any take actions against them besides identify the risks and recognize that they are outside the scope of the project. This applies to both threats and opportunities.

	== Priority of Opportunities and Threats ==		== Priority of Opportunities and Threats ==
	~~[[File:Priority_of_The_Response_Strategy_for_Threats_and_Opportunities.png\|right\|thumb\|350px\|Figure 4: Priority of The Response Strategy for Threats and Opportunities <ref name=Hillson/> ]]~~

	When managing threats and opportunities it is important to prioritize the response strategy of the identified risks. In the previous section, the strategies are prioritized so that the strategies described first are the most important. It can also be seen in figure 4, which shows the priority order of the responses <ref name=Hillson/>. When this approach is used, one will initially look at '''"Avoid"''' and '''"Exploit"''', as they have the greatest potential and impact on the project. The second priority is '''"Transfer"''' and '''"Share"''', here the search is for another stakeholder who can either manage the risk to maximize a opportunity or minimize a threat in order to control the impact of the risk. The third priority is '''"Mitigate"''' and '''"Enhance"''', which are used when it is not possible to avoid/exploit or transfer/share the risk. The last response strategy '''Accept/Ignore''' is used when the other response strategies have been considered and the risk is identified as being of minor importance/impact.		When managing threats and opportunities it is important to prioritize the response strategy of the identified risks. In the previous section, the strategies are prioritized so that the strategies described first are the most important. It can also be seen in figure 4, which shows the priority order of the responses <ref name=Hillson/>. When this approach is used, one will initially look at '''"Avoid"''' and '''"Exploit"''', as they have the greatest potential and impact on the project. The second priority is '''"Transfer"''' and '''"Share"''', here the search is for another stakeholder who can either manage the risk to maximize a opportunity or minimize a threat in order to control the impact of the risk. The third priority is '''"Mitigate"''' and '''"Enhance"''', which are used when it is not possible to avoid/exploit or transfer/share the risk. The last response strategy '''Accept/Ignore''' is used when the other response strategies have been considered and the risk is identified as being of minor importance/impact.

TheisRS: /* Probability Impact Matrix for Opportunities and Threats */

2023-03-29T19:47:28Z

Probability Impact Matrix for Opportunities and Threats

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	== Probability Impact Matrix for Opportunities and Threats ==		== Probability Impact Matrix for Opportunities and Threats ==
	[[File:Double_Probability_Impact_Matrix.png\|right\|thumb\|~~400px~~\|Figure 5: The "Double Probability Impact Matrix" for threats and opportunities <ref name=RiskResponse/> ]]		[[File:Double_Probability_Impact_Matrix.png\|right\|thumb\|350px\|Figure 5: The "Double Probability Impact Matrix" for threats and opportunities <ref name=RiskResponse/> ]]

	The goal for risk treatment is to minimize the identified risks that have a negative impact, and to maximize the risks that have a positive impact. By using qualitative risk analyses, it is possible to determine their likelihood and potential effects on the current project objectives. The primary technique used is the Probability Impact Matrix, which makes it possible to prioritize the risks for further attention <ref name=RiskResponse/>. Each risk is assessed against some criteria and placed on a two-dimensional grid. The location of the risk on the matrix describes the significance of the risk, allowing the risk to be ranked. The ''"Probability Impact Matrix"'' is illustrated in figure 5, showing the areas of attention for threats and opportunities.		The goal for risk treatment is to minimize the identified risks that have a negative impact, and to maximize the risks that have a positive impact. By using qualitative risk analyses, it is possible to determine their likelihood and potential effects on the current project objectives. The primary technique used is the Probability Impact Matrix, which makes it possible to prioritize the risks for further attention <ref name=RiskResponse/>. Each risk is assessed against some criteria and placed on a two-dimensional grid. The location of the risk on the matrix describes the significance of the risk, allowing the risk to be ranked. The ''"Probability Impact Matrix"'' is illustrated in figure 5, showing the areas of attention for threats and opportunities.

TheisRS: /* Introduction */

2023-03-29T19:46:42Z

Introduction

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	=== The Risk Management Process ===		=== The Risk Management Process ===
	[[File:The_risk_management_process_v2.png\|right\|thumb\|~~200px~~\|Figure 1: The Risk Management Process <ref name=ISO31000_2018> Danish Standards Association (2018), DS/ISO 31000:2018, Risk management - Guidelines, Retrieved from https://sd.ds.dk/Viewer/Standard?ProjectNr=M296412&Status=60.60&VariantID=41&Page=0 </ref>]]		[[File:The_risk_management_process_v2.png\|right\|thumb\|250px\|Figure 1: The Risk Management Process <ref name=ISO31000_2018> Danish Standards Association (2018), DS/ISO 31000:2018, Risk management - Guidelines, Retrieved from https://sd.ds.dk/Viewer/Standard?ProjectNr=M296412&Status=60.60&VariantID=41&Page=0 </ref>]]

	Risk management is a process that works to manage risks to ensure that it cause the least impact in the project. Risk management is based on assumptions and experience from previous projects. However, many assumptions are uncertain which can have an effect on the project's original scope. The Project Management Institute (PMI), describes risks as ''"An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives"'' <ref name=PMI> Project Management Institute, Inc. (PMI). (2021). A Guide to the Project Management Body of Knowledge (PMBOK ® Guide) – 7th Edition and The Standard for Project Management. (pp. 114-125). Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/pdf/id:kt012LZJB1/guide-project-management/opportunities </ref>. By successfully navigating the uncertainty, risk can be managed in a way that is most beneficial to the project scope.		Risk management is a process that works to manage risks to ensure that it cause the least impact in the project. Risk management is based on assumptions and experience from previous projects. However, many assumptions are uncertain which can have an effect on the project's original scope. The Project Management Institute (PMI), describes risks as ''"An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives"'' <ref name=PMI> Project Management Institute, Inc. (PMI). (2021). A Guide to the Project Management Body of Knowledge (PMBOK ® Guide) – 7th Edition and The Standard for Project Management. (pp. 114-125). Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/pdf/id:kt012LZJB1/guide-project-management/opportunities </ref>. By successfully navigating the uncertainty, risk can be managed in a way that is most beneficial to the project scope.
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	=== Knowledge and awareness ===		=== Knowledge and awareness ===
	[[File:Knowledge_and_Awareness.png\|right\|thumb\|~~200px~~\|Figure 2: Knowledge and Awareness <ref name=Hillson/>]]		[[File:Knowledge_and_Awareness.png\|right\|thumb\|250px\|Figure 2: Knowledge and Awareness <ref name=Hillson/>]]

	David Hillson describes the difference between risk and uncertainties. He states that "risk" has a set of possible outcomes that are known, but that the precise outcome is not known in advance. In contrast, uncertainties relates to a lack of knowledge about the possible outcomes and are thus an unknown event from an unknown number of possible outcomes <ref name=Hillson> Hillson, David. ''"Effective Opportunity Management for Projects - Exploiting Positive Risk"'', 2003. Ch. 1. ''"The case for opportunity management".'' Marcel Dekker Inc. </ref>.		David Hillson describes the difference between risk and uncertainties. He states that "risk" has a set of possible outcomes that are known, but that the precise outcome is not known in advance. In contrast, uncertainties relates to a lack of knowledge about the possible outcomes and are thus an unknown event from an unknown number of possible outcomes <ref name=Hillson> Hillson, David. ''"Effective Opportunity Management for Projects - Exploiting Positive Risk"'', 2003. Ch. 1. ''"The case for opportunity management".'' Marcel Dekker Inc. </ref>.
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	=== Donald Rumfeld's Unknown-unknowns ===		=== Donald Rumfeld's Unknown-unknowns ===
	[[File:~~Work_in_progress~~.png\|right\|thumb\|~~200px~~\|Figure 3: The Connection Between Hillson's ''Knowledge and Awareness'' figure<ref name=Hillson/> & ''Rumsfeld Matrix''<ref name=Krogerus/> ]]		[[File:The_Connection_Between_Hillson's_Knowledge_and_Awareness_figure_&_Rumsfeld_Matrix.png\|right\|thumb\|250px\|Figure 3: The Connection Between Hillson's ''Knowledge and Awareness'' figure<ref name=Hillson/> & ''Rumsfeld Matrix''<ref name=Krogerus/> ]]

	The knowledge and awareness figure created by Hillson and the Johari Window is a comparison to the known description used by the former U.S. Secretary of Defense Donald Rumsfeld at a press conference in 2002. He described the types of uncertainties as:		The knowledge and awareness figure created by Hillson and the Johari Window is a comparison to the known description used by the former U.S. Secretary of Defense Donald Rumsfeld at a press conference in 2002. He described the types of uncertainties as:

TheisRS: /* Priority of Opportunities and Threats */

2023-03-29T19:44:50Z

Priority of Opportunities and Threats

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	== Priority of Opportunities and Threats ==		== Priority of Opportunities and Threats ==
	[[File:~~Work_in_progress~~.png\|right\|thumb\|~~200px~~\|Figure 4: Priority of The Response Strategy for Threats and Opportunities <ref name=Hillson/> ]]		[[File:Priority_of_The_Response_Strategy_for_Threats_and_Opportunities.png\|right\|thumb\|350px\|Figure 4: Priority of The Response Strategy for Threats and Opportunities <ref name=Hillson/> ]]

	When managing threats and opportunities it is important to prioritize the response strategy of the identified risks. In the previous section, the strategies are prioritized so that the strategies described first are the most important. It can also be seen in figure 4, which shows the priority order of the responses <ref name=Hillson/>. When this approach is used, one will initially look at '''"Avoid"''' and '''"Exploit"''', as they have the greatest potential and impact on the project. The second priority is '''"Transfer"''' and '''"Share"''', here the search is for another stakeholder who can either manage the risk to maximize a opportunity or minimize a threat in order to control the impact of the risk. The third priority is '''"Mitigate"''' and '''"Enhance"''', which are used when it is not possible to avoid/exploit or transfer/share the risk. The last response strategy '''Accept/Ignore''' is used when the other response strategies have been considered and the risk is identified as being of minor importance/impact.		When managing threats and opportunities it is important to prioritize the response strategy of the identified risks. In the previous section, the strategies are prioritized so that the strategies described first are the most important. It can also be seen in figure 4, which shows the priority order of the responses <ref name=Hillson/>. When this approach is used, one will initially look at '''"Avoid"''' and '''"Exploit"''', as they have the greatest potential and impact on the project. The second priority is '''"Transfer"''' and '''"Share"''', here the search is for another stakeholder who can either manage the risk to maximize a opportunity or minimize a threat in order to control the impact of the risk. The third priority is '''"Mitigate"''' and '''"Enhance"''', which are used when it is not possible to avoid/exploit or transfer/share the risk. The last response strategy '''Accept/Ignore''' is used when the other response strategies have been considered and the risk is identified as being of minor importance/impact.

TheisRS: /* Probability Impact Matrix for Opportunities and Threats */

2023-03-29T19:43:52Z

Probability Impact Matrix for Opportunities and Threats

← Older revision		Revision as of 19:43, 29 March 2023
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	== Probability Impact Matrix for Opportunities and Threats ==		== Probability Impact Matrix for Opportunities and Threats ==
	[[File:~~Work_in_progress~~.png\|right\|thumb\|~~200px~~\|Figure 5: The "Double Probability Impact Matrix" for threats and opportunities <ref name=RiskResponse/> ]]		[[File:Double_Probability_Impact_Matrix.png\|right\|thumb\|400px\|Figure 5: The "Double Probability Impact Matrix" for threats and opportunities <ref name=RiskResponse/> ]]

	The goal for risk treatment is to minimize the identified risks that have a negative impact, and to maximize the risks that have a positive impact. By using qualitative risk analyses, it is possible to determine their likelihood and potential effects on the current project objectives. The primary technique used is the Probability Impact Matrix, which makes it possible to prioritize the risks for further attention <ref name=RiskResponse/>. Each risk is assessed against some criteria and placed on a two-dimensional grid. The location of the risk on the matrix describes the significance of the risk, allowing the risk to be ranked. The ''"Probability Impact Matrix"'' is illustrated in figure 5, showing the areas of attention for threats and opportunities.		The goal for risk treatment is to minimize the identified risks that have a negative impact, and to maximize the risks that have a positive impact. By using qualitative risk analyses, it is possible to determine their likelihood and potential effects on the current project objectives. The primary technique used is the Probability Impact Matrix, which makes it possible to prioritize the risks for further attention <ref name=RiskResponse/>. Each risk is assessed against some criteria and placed on a two-dimensional grid. The location of the risk on the matrix describes the significance of the risk, allowing the risk to be ranked. The ''"Probability Impact Matrix"'' is illustrated in figure 5, showing the areas of attention for threats and opportunities.

TheisRS: /* Annotated Bibliography */

2023-03-04T15:04:25Z

Annotated Bibliography

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	'''Books'''		'''Books'''
	# Hillson, David. ''"Effective Opportunity Management for Projects - Exploiting Positive Risk"'', 2003. Ch. 1. ''"The case for opportunity management"''. <ref name=Hillson/>		# Hillson, David. ''"Effective Opportunity Management for Projects - Exploiting Positive Risk"'', 2003. Ch. 1. ''"The case for opportunity management"''. <ref name=Hillson/>
	#* Provides a detailed description of the Knowledge and awareness matrix and the .		#* Provides a detailed description of the Knowledge and awareness matrix and the relationship between risk and uncertainty.
	# Krogerus, Mikael. ''"The decision book: fifty models for strategic thinking"'', 2012. <ref name=Krogerus/>		# Krogerus, Mikael. ''"The decision book: fifty models for strategic thinking"'', 2012. <ref name=Krogerus/>
	#* Uses and describes the Rumsfeld Matrix.		#* Uses and describes the Rumsfeld Matrix.

TheisRS: /* Annotated Bibliography */

2023-03-04T15:03:32Z

Annotated Bibliography

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	'''Books'''		'''Books'''
	# Hillson, David. ''"Effective Opportunity Management for Projects - Exploiting Positive Risk"'', 2003. Ch. 1. ''"The case for opportunity management"''. <ref name=Hillson/>		# Hillson, David. ''"Effective Opportunity Management for Projects - Exploiting Positive Risk"'', 2003. Ch. 1. ''"The case for opportunity management"''. <ref name=Hillson/>
	#* Provides a detailed description of ~~responses to threats~~ and ~~opportunities~~.		#* Provides a detailed description of the Knowledge and awareness matrix and the .
	# Krogerus, Mikael. ''"The decision book: fifty models for strategic thinking"'', 2012. <ref name=Krogerus/>		# Krogerus, Mikael. ''"The decision book: fifty models for strategic thinking"'', 2012. <ref name=Krogerus/>
	#* Uses and describes the Rumsfeld Matrix.		#* Uses and describes the Rumsfeld Matrix.

TheisRS: /* Limitations */

2023-03-04T14:57:09Z

Limitations

← Older revision		Revision as of 14:57, 4 March 2023
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			DO NOT LOOK AT THIS:
	Ref:		Ref:

TheisRS: /* Annotated Bibliography */

2023-03-04T14:56:40Z

Annotated Bibliography

← Older revision		Revision as of 14:56, 4 March 2023
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	# Project Management Institute, Inc. (PMI). (2021). ''A Guide to the Project Management Body of Knowledge (PMBOK ® Guide) – 7th Edition and The Standard for Project Management''. (pp. 114-125). Project Management Institute, Inc. (PMI). <ref name=PMI/>		# Project Management Institute, Inc. (PMI). (2021). ''A Guide to the Project Management Body of Knowledge (PMBOK ® Guide) – 7th Edition and The Standard for Project Management''. (pp. 114-125). Project Management Institute, Inc. (PMI). <ref name=PMI/>
	#* Elaborates on the theory and terms behind uncertainties, risks and the prioritization of threats and opportunities. Use this article to learn more about the process behind risk treatment.		#* Elaborates on the theory and terms behind uncertainties, risks and the prioritization of threats and opportunities. Use this article to learn more about the process behind risk treatment.

	# Danish Standards Association (2018), DS/ISO 31000:2018, ''Risk management - Guidelines''. <ref name=ISO31000_2018/>		# Danish Standards Association (2018), DS/ISO 31000:2018, ''Risk management - Guidelines''. <ref name=ISO31000_2018/>
	#* Provides a good description of the risk management process, as well as benefits and important points in the seven steps.		#* Provides a good description of the risk management process, as well as benefits and important points in the seven steps.

	# ''There are unknown unknowns''. Retrieved February 10, 2023. <ref name=unknown/>		# ''There are unknown unknowns''. Retrieved February 10, 2023. <ref name=unknown/>
	#* Gives a description of unknown unknowns.		#* Gives a description of unknown unknowns.

	# Hillson, D. (2002). ''Extending the risk process to manage opportunities. International Journal of Project Management'', (pp. 235–240). <ref name=RiskResponse/>		# Hillson, D. (2002). ''Extending the risk process to manage opportunities. International Journal of Project Management'', (pp. 235–240). <ref name=RiskResponse/>
	#* Provides a detailed description of responses to threats and opportunities.		#* Provides a detailed description of responses to threats and opportunities.
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	# Hillson, David. ''"Effective Opportunity Management for Projects - Exploiting Positive Risk"'', 2003. Ch. 1. ''"The case for opportunity management"''. <ref name=Hillson/>		# Hillson, David. ''"Effective Opportunity Management for Projects - Exploiting Positive Risk"'', 2003. Ch. 1. ''"The case for opportunity management"''. <ref name=Hillson/>
	#* Provides a detailed description of responses to threats and opportunities.		#* Provides a detailed description of responses to threats and opportunities.

	# Krogerus, Mikael. ''"The decision book: fifty models for strategic thinking"'', 2012. <ref name=Krogerus/>		# Krogerus, Mikael. ''"The decision book: fifty models for strategic thinking"'', 2012. <ref name=Krogerus/>
	#* Uses and describes the Rumsfeld Matrix.		#* Uses and describes the Rumsfeld Matrix.