• Table of Contents

Risk Management Model

Last time, we talked about the basics of risk management, including its key components, types of risks, and common models. Today, we're going to delve deeper into one of these models.

Figure 10.18 Taylor risk management model.

The Taylor risk management model is a systematic approach to managing risks throughout a project's life cycle. It consists of the following steps:

1. Risk Management Planning
2. Risk Identification
3. Qualitative Risk Analysis
4. Quantitative Risk Analysis
5. Risk Response Planning
6. Risk Monitoring and Control

In this lecture, we will go through each category one by one to understand their purpose.

Risk Management Planning

The first step of the process is risk management planning — an essential process that focuses on how to approach, plan, and execute all of the project's risk management activities.

Input and Output

When initiating a project, the scope may not always be clearly defined. To facilitate risk management planning, it's essential to consider critical factors (inputs), such as:

• Environmental factors shape risk tolerance of organization and stakeholders
• Organization process assets can also shape risk planning if there are existing policies and guidelines.
• Project scope statement has important information for risk planning.