Risk Analysis – Short Introduction

 

Primavera P6 is known as an enterprise scheduling platform and resource management (cash flow, resource loading, and portfolio management). What is less well-known is its risk management feature in the program.

 

Risks are possible events or conditions that have the potential to negatively (or positively) impact on project objectives. Primavera P6 has included this integrated Risk Management. The component is used to enable users to identify, categorize and prioritize the discovered risks. Typically, a person is assigned to manage the risks. The risks are then assigned to one or more activities that may be impacted by them. After which, there will be a qualitative and quantitative analysis of each of the risks involved.

 

Assessment

 

Risks are basically the possible events or conditions that have the potential to negatively (or positively) impact on the objectives of a project. They are potential threats (or opportunities) for a project. They are actually anticipated and documented as part of the planning process.

 

Primavera P6 Issues, on the other hand, are unanticipated events, and a realized threat in a project that either requires action or visibility.

 

Risk analysis

 

Basically, risk analysis in primavera p6 is one proven way of identifying and assessing the factors that could negatively affect the success of a business or project. For a company mover, you are allowed to examine the risks that you or your organization faces. It helps you to decide whether or not to move forward.

 

The Primavera risk analysis in primavera p6 uses the advanced Monte Carlo-based cost and schedule analytics. This provides the full-cycle risk management through the following types of risk models: estimate uncertainty, task existence, fixed-cost uncertainty, variable-cost uncertainty, and resource uncertainly among others.

 

Risk management

 

As a process, risk management is focused on identifying, assessing, and controlling threats to an organization’s capital and earnings. These risks come from many sources. These come from financial uncertainties, legal liabilities, technology issues, management errors, accidents and natural disasters.

 

Active risk is the type that a fund or managed portfolio creates when it tries to beat the returns of the benchmark where it is compared to. Risk characteristics of a fund versus its benchmark provide insight on a fund's active risk. Active risk manager works by managing project and programs risks through strategic planning. This helps organizations to identify, analyze, control, monitor, mitigate and report on risk across the enterprise.

 

Scheduled risk analysis in primavera p6 / cost risk analysis

 

This one is a planning procedure that aspires to improve the predictability and performance of a project. It helps project managers assess the likely impact of uncertainty and of individual risks on time to completion. Cost risk analysis considers the different costs that are associated with a project (labor, materials, equipment, administration, etc.). It focuses on the uncertainties and risks that can affect these costs.

 

A project simulation uses a model that translates the uncertainties into their potential impact on project objectives. The cost estimate risk analysis identifies the risks associated with the capital projects by way of brainstorming and highlighting both threats and opportunities of a project. It assesses the cost impact on the risks based on variability, impact, and probability.