Using Online Tools for Risk Management

The key to successful risk management is to identify all risks you know about and build time in for risks you do not know about. The mechanics of doing this is to simply list the risks, and figure out the loss (in hours) you expect would happen if the risk occurs, and then list the probability of the risk happening. Then you can factor that risk into your project schedule by multiplying the loss by the probability. For example, let's assume that you have decided to use a new outsourcing company to do some of the coding for your project. Since you have not worked with them before, you surmise that there is a 50% probability that you could incur 40 hours of additional development because of the new resource. You would build 20 additional hours (40 hours * 50% probability) into your project plan to mitigate the risk.

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