Risk Cause Categories:

Operational risk mgt Project Risk mgt

Strategic/  Insolvency of promoter

commercial  Failure of suppliers to meet contractual commitments
 Insufficient capital revenues
 Market fluctuations
 Fraud/theft
 Lack of availability of capital investment.
Economic/  Exchange rate fluctuation
financial/  Interest rate instability
market
 Inflation
 Shortage of working capital
Legal and  New or changed legislation
regulatory  Failure to obtain appropriate approval
 Failure to achieve satisfactory contractual arrangements
 Unexpected regulatory controls or licensing requirements
Organisational/  Management incompetence
management/  Inadequate corporate policies or adoption of management
human factors
 Personnel practices
 Internal  Poor leadership
Processes  Key personnel have inadequate authority to fulfil their roles
 Systems  Poor staff selection procedures
 External events  Individual or group interests given unwarranted priority
Political  Change of government policy
 Change of government
 War and disorder
 Adverse public opinion/media intervention.
Environmental  Natural disasters
 Storms, flooding, tempests
 Pollution incidents
 Transport problems, including aircraft/vehicle collisions.
Technical/  Inadequate design
operational/  Infrastructure failure
infrastructure
 Safety being compromised
 Performance failure
 Breaches in security/information security
 Lack or inadequacy of business continuity.
 RE-CATEGORIZATION

 Key personnel have inadequate authority to fulfil their

Personnel Human roles
factors  Poor staff selection procedures
 Individual or group interests given unwarranted priority

Internal Processes Organisational/  Management incompetence

management/
 Inadequate corporate policies or adoption of
legal
management practices
 Poor leadership
 Fraud/theft


Political  Change of government policy

 Change of government
 War and disorder
 Adverse public opinion/media intervention.
Environmental  Natural disasters
 Storms, flooding, tempests
 Pollution incidents
 Transport problems, including aircraft/vehicle
collisions.

Strategic/  Insolvency of promoter
commercial  Failure of suppliers to meet contractual commitments
External events  Insufficient capital revenues
 Market fluctuations
 Lack of availability of capital investment.
Economic/  Exchange rate fluctuation
financial/  Interest rate instability
market
 Inflation
 Shortage of working capital
Legal and  New or changed legislation
regulatory  Failure to obtain appropriate approval
 Failure to achieve satisfactory contractual
arrangements
 Unexpected regulatory controls or licensing
requirements
 Technical/  Inadequate design
operational/  Infrastructure failure
infrastructure
 Safety being compromised
Systems
 Performance failure
 Breaches in security/information security
 Lack or inadequacy of business continuity.

IMPACT ASSESSMENT

Impact Categories:

Operational risk mgt Project risk mgt

Business
Financial Time, Cost, Benefits, Scope, Human, Quality
Reputational

Impact 1 2 3 4 5
Categories Minimal Az Orta Çox Maksimal
Time Extends the
Extends the Extends the Extends the Extends the
project life cycle
project life cycle project life cycle project life cycle project life cycle
by more than 80
by 50 - 80 % by 30 - 50 % by 10 - 30 % by 1 – 10 %
%
Cost Increases project Increases project Extends the Increased costs Increased costs
costs by more cost by 25 – 50 project life cycle by less than 5 - by less than 1 –
than 50% % by 10 - 25 % 10 % 5%
Scope

Benefits Reduction of Reduces benefit

Reduces benefit Reduced benefit Reduces benefit
benefit by more by less than 10
by 35 to 50 % by 10 - 25 % by less than 3 %
than 50 % %
Quality Quality will be Quality is within
Quality is Quality is Quality is not as
inacceptable to tolerance
inferior to inferior to planned but
user and product without major
expectations and expectations, but largely within
will not be impact on user
will reduce will only impact tolerance
approved satisfaction
 overall user satisfaction of a
satisfaction part of the users
Human People will be
Lives of people Heavy injuries Light injuries
inconvenienced n/a
are endangered will occur will occur
by the project

LIKELIHOOD ASSESSMENT

1 2 3 4 5
Probability/Likelihood
Az ehtimal Çox ehtimal Demək olar ki
Nadir Mümkün
edilən edilən mütləq

Historical data/lessons learned and judgment driven

Extracted from ORM methodology

Əlavə 4

RİSK XƏRİTƏSİ

Maksimal 5 5 10 15 20 25

Çox T 4 4 8 12 16 20
Ə
S
Orta İ 3 3 6 9 12 15
R

O
Az 2 2 4 6 8 10
X

U
 Minimal 1 1 2 3 4 5

1 2 3 4 5
EHTİMAL OXU

Nadir Az Mümkün Çox ehtimal Demək olar

ehtimal edilən ki mütləq
edilən

Qeyd: Prioritet Reytinqləri

= Aşağı risk = Yüksək risk

= Orta risk = Çox yüksək risk

RESPONSE STRATEGIES

ORM P3M

İmtina Avoid
Yumşaltma Reduce
? Share
Ötürmə Transfer
? Fallback
Qəbul etmə Accept
ROLE AND RESPONSIBILITIES

ORM P3M

Risk Koordinator ?
Məsul şəxs Risk Actionee
Risk Sahibi Risk Owner
? Author

Documents OPM P3M

Risk register Prepared by structural units (documented Documented by the Project

by the Risk Coordinator) and submitted to Manager/ Project Support and
RMD submitted to the Project Board?

Risk Response Plan Documented by Risk Coordinator and Documented by Project

submitted for approval to Risk Owner, for Manager/Project Support?
a review to RMD, and delegated for Submitted to Project Board?
actions to Risk Actionee Delegated for actions to a Risk
Actionee

Risk Progress Report To RMD and further to ORC (risk Project Manager to Project Board
reporting template) in Highlight Report

Risk Escalation ORC through RMD Project Board, or Program and/or

Corporate management level