Project Risk: Understanding the Relationship Between WBS and RBS

This presentation provides a detailed overview of risk identification in project management, focusing on the Work Breakdown Structure (WBS) and Risk Breakdown Structure (RBS). It discusses the elements and objectives of risk management, highlighting the importance of risk identification and prioritization. The presentation explores the relationship between WBS and RBS, noting their overlaps, similarities, and differences, with examples to illustrate these concepts. It covers various aspects of risk identification, including positive and negative risks, business and project risks, and techniques such as brainstorming, the Delphi Technique, SWOT analysis, and interviews. The presentation also provides a real-life example of identified risks, their prioritization, and analysis, along with recommendations for effective risk identification and management. In conclusion, the presentation emphasizes the importance of proper risk identification and management for project success.

RISK MANAGEMENT
(RISK IDENTIFICATION)

RISK MANAGEMENT:
Risk management elements and objectives
Risk management objectives
Risk Identification
Risk
Identifi
cation
Setting
Priority
of risk
Identif
y risk
Respon
ding to
risk

Risk Breakdown
Structure
Higher Level
Lower Level
RISK AND WORK BREAKDOWN
STRUCTURE:
•Higher Level
Risks
•Lower Level
risks
•High priority
work
•Low priority
work

Example of Risk Breakdown Structure:
Source: (project

Work Breakdown Structure:
Source:(Joslin & Müller,
2015)

RELATIONSHIP BETWEEN WBS AND RBS:
WBS
(Identificat
ion of risk)
RBS(Priori
ty of risks)
•Identification of
risk
•Priority of risk

ASPECTS OF RISK IDENTIFICATION
Risk Identification
From impact perspective
Positive
Negative
From business perspective
Business risk
Project Risks
•Positive risk
•Negative
Risk
•Business
risk
•Project Risk

RISK IDENTIFICATION
•Inputs
•Past Experience
•Focus Areas
•Ignore Risk
Outside the
Control
MANAGING
RISK
Avoid
Actions to
reduce the risk
probability
Actions to
reduce impacts
of the risk
Pass the risk
to another
party, which
is called
commercial
agreement

Techniques of RISK IDENTIFICATION:
D
E
L
P
H
I
T
e
c
h
n
i
q
u
e
S
W
O
T
A
n
a
l
y
s
i
s
B
r
a
i
n
s
t
r
o
m
i
n
g
I
n
t
e
r
v
i
e
w
Risk
identificati
on methods
•Brainstormi
ng
•The Delphi
Technique
•SWOT
Analysis and
•Interview.

Real Life Example:
Identified risks:
Software compatibility
Requirement specification

Identification of the practical example with the
theoretical concept:
Prioritization of risks
Assigning the degree of risks
Analysis based on the other
factors.

Recommendations:
•Risk Identification
•WBS structure
•Right assessments

Conclusion
•Importance of risk
•Proper identification of risk
•Management of risk
•Relationship between WBS and
RBS
•Effects of risk identifications.

References
Snyder, C. S. (2014). A guide to the project management body of
knowledge: PMBOK (®) guide. Project Management Institute:
Newtown Square, PA, USA.
project management. (2018). PM.com. Retrieved 15 April 2018, from
https://project-management.com/understanding-the-risk-breakdown-
structure-rbs/
Paul, V. K., & Basu, C. (2016). Scenario Planning and Risk Failure Mode
Effect and Analysis (RFMEA) based Management. Journal of
Construction Engineering and Project Management, 6(2), 24-29.
Wu, W. S., Yang, C. F., Chang, J. C., Château, P. A., & Chang, Y. C.
(2015). Risk assessment by integrating interpretive structural
modeling and Bayesian network, case of offshore pipeline
project. Reliability Engineering & System Safety, 142, 515-524.
Joslin, R., & Müller, R. (2015). Relationships between a project
management methodology and project success in different project
governance contexts. International Journal of Project
Management, 33(6), 1377-1392.

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