4. Risk & Change Management

Risk & Change

Risk Management Overview

Risk management is the systematic process of identifying, analyzing, and responding to project risks. A risk is any uncertain event that could positively (opportunity) or negatively (threat) affect project objectives.

Risk Management Process

1. Plan Risk Management — Define approach, roles, and budget
2. Identify Risks — Brainstorm, checklists, SWOT analysis, interviews
3. Qualitative Analysis — Prioritize by probability and impact
4. Quantitative Analysis — Numeric analysis (Monte Carlo, decision trees)
5. Plan Risk Responses — Avoid, mitigate, transfer, accept, exploit
6. Monitor and Control — Track identified risks and identify new ones

Risk Categories

• Technical — Technology changes, requirements ambiguity
• External — Market shifts, regulatory changes, natural events
• Organizational — Resource availability, budget cuts, priority shifts
• Project Management — Poor estimation, inadequate planning

Change Management

Change management ensures that changes to project scope, schedule, or resources are formally reviewed and approved. Key components:

• Change Control Board (CCB) — reviews and approves/rejects changes
• Change Request Form — documents the proposed change
• Impact Analysis — assesses effect on constraints
• Change Log — tracks all change requests and their status

Conflict Management

Five approaches to resolving conflict (Thomas-Kilmann model):

• Avoiding — Withdraw from conflict (low assertiveness, low cooperation)
• Accommodating — Yield to others (low assertiveness, high cooperation)
• Competing — Force your position (high assertiveness, low cooperation)
• Compromising — Find middle ground (moderate both)
• Collaborating — Find win-win solution (high both) — most effective

Crisis Management

When risks materialize into crises, follow these steps: assess the situation immediately, assemble a crisis team, communicate transparently with stakeholders, contain damage, develop a recovery plan, and conduct a post-mortem.