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Information Technology Project Management

Rank Risk Description Category Root Cause Triggers Potential Responses Risk score
1 Employees losing interest in the company Team members leaving Staffing Lack of incentives to stay Overlooked by management, lack of incentives to stay Give team member more attention when work is performed well, entice member to stay 10000
2 Unhappy, disgruntled users Users not helping, causing problems to the team Conflict No plan for conflict management Poor team dynamics Build a conflict management program, and execute the training with the team members 7000
3 Poor info Not getting complete status info Communications No guide-lines for passing on the company’s info Poor status reports Provide guidelines and personal training on passing on the company’s info 4900
4 Improve team health Several team members want to improve health Health/morale Lack of attention to personal health More energy, less sick days Provide incentives for the team to improve health, contest for participation/improvement 3000
5 Earn bonuses If the team does well, it could receive bonuses Incentives Desire to perform well Meeting/beating plans, good management feedback Build a plan for the team to earn bonuses 3000
6 Sitting allowance Project meeting attendance to be paid Motivation Desire to boost team work Few team members attending the project meetings Build a sitting allowance scheme to motivate them 7000

Since the probability impact matrix shows the comparative probability of a risk happening on one side and its impact on another axis, enter your risks and classify them as low, medium and high according to the chance of their occurrences and consequences. In this case, using the scale of 1-10, we divide this table into three sections: low, medium and high. We assign values: 30 to low, 70 to medium and 100 to high. Therefore, these values are numbers representing the total risk of events according to the chances of them emerging and the possible results if they do happen.

Considering the risk of employees losing interest in the company, which is a negative risk, we assign its probability of occurrence to 100, which is rather high. The high probability of its occurrence is evident among the team members leaving the company. This can be triggered by the fact that the project’s coordination is poor. Therefore, the chances of this problem arising are significant, and we assign the value 100. On multiplying the probability of occurrence and the impact of the risk, we obtain a risk score of 10000. Thus, the high probability of the risk occurring and its high impact on the project makes the risk score high.

Considering the risk of the team members earning bonuses, which is a positive risk, we assign the values 30 to its probability of occurrence and 100 to its impact. The probability of emerging is low, but its impact in the project objective is high. The value is low because of the management involving in reviewing the bonus scheme and incentives for the team members. The risk boosts the team members’ morale and, therefore, its impact on the project is high, though the probability of its occurrence is low. Team members get motivated and produce high positive impact on the project development. This explains the risk having the score equal to 3000. As a result, it provides low probability of occurrence and high impact in the project objective.