Skip to content

Risk & Issue management

Main concepts used in this document

  • A risk is a potential future event that could negatively impact a project.
  • The risk level is determined by the probability of the risk occurring and the impact it will have. Both parameters can be configured.
  • A mitigation plan reduces the probability of the risk occurring.
  • A contingency plan does not affect the probability of occurrence but prepares a response to control the impact if the risk materializes.
  • An issue is an event that affects the project. If a risk mitigation plan fails, the risk can be escalated to an issue.
  • Types of issues in ITM Platform:
  • Problem: An unexpected event affecting project or service delivery.
  • Change request: An adjustment to specifications, impacting project deliverables.
  • Bug: A defect affecting the functionality of the service or product.
  • Tasks affected by the risk: Existing tasks at risk, categorized by impact on scope, budget, or schedule.
  • Tasks to tackle the risk: Tasks created to manage, mitigate, or execute the contingency plan.
  • Tasks affected by the issue: Existing tasks impacted by an issue, categorized by scope, budget, or schedule.
  • Tasks to tackle the issue: Tasks created to resolve the issue.
  • Risk or issue manager: The person responsible for monitoring the risk or resolving the issue. Tasks related to risks or issues may have their own managers and team members.
  • Issue resolution: A record of how an issue was resolved, including changes to project cost, schedule, or scope.

This is a general overview of the concepts covered in the next sections.

General overview

Risks

You can access risks under Risk & Issues in a project’s menu, specifically in the Risks subsection.

The default view is the Graph View, displaying a visual risk map.

Risk graph

You can: - Add, edit, or delete risks. - Modify impact and probability values, dynamically updating the risk level. - View the risk matrix, which visually maps probability (vertical axis) against impact (horizontal axis).

Risk matrix

Switching to List View allows you to filter, select columns, and export risks to Excel.

The risk file

Editing a risk includes the following sections:

General

  • Assign a name and classification.
  • A unique risk number is generated.

Potential impact on project

  • The Risk occurrence subsection records:
  • Cost variation (financial impact).
  • Schedule variation (time impact in days).
  • Change in scope (description of potential project alterations).
  • The Tasks Affected by this Risk subsection links existing tasks impacted by the risk, specifying how they are affected (cost, budget, or scope).

Risk management

  • Assign a risk manager.
  • Define a mitigation plan and contingency plan.
  • Attach related documents.
  • Create or link Tasks to Tackle Risk, which are tasks created to manage the risk (distinct from affected tasks).
  • Track Total Cost of Risk Management and Total Hours of Risk Management (can be manually entered or derived from task costs and hours).

Associated issues

If a risk escalates into an issue, you can link or create issues directly from this section.

Issues

Issues may arise from previously identified risks or occur independently.

The structure of an issue is similar to a risk: - General section - Tasks affected by the issue - Tasks to tackle the issue - Associated risks

Issue resolution

This section is completed when an issue is closed. - Add a resolution description and attach documents. - Change in Project Cost: Records financial impact. You can manually enter a value or use the associated risk’s occurrence cost. - Schedule variations: Track time delays caused by the issue.

Settings

ITM Platform includes predefined settings for managing risks and issues. To modify these settings, go to CONFIGURATION > PARAMETERS.

Risk parameters

The most relevant section under Risk Parameters is the Risk Level tab.

  • You can modify or create risk impact values (e.g., high, medium-high, medium-low, low).
  • You can customize risk probability values, similar to impact.
  • The Risk Level is calculated by multiplying impact and probability, and the company can define thresholds for high, medium, and low levels.

For example, if the threshold for medium risk is 25 and for high risk is 35, then a risk with an impact of 4 and a probability of 7 will have a level of 28, making it a medium-level risk.

Additional configurable options: - Risk status: Customize different stages of risk management. - Risk type: Define categories for risks based on your company’s needs.

Issue parameters

  • Issue type: Categorize issues to reflect cost and schedule impacts. ITM Platform provides three predefined types: Change Request, Bug, and Problem. These can be edited or expanded.
  • Issue status: Track whether an issue is ongoing or resolved. ITM Platform includes "Open" and "Closed" statuses by default, but additional statuses can be created.

Dashboard

The project dashboard includes the following metrics:

  • Total cost of risk management
  • Total cost of issue management
  • Total schedule variation due to risk occurrence
  • Total cost of changes from closed issues
  • Total schedule variation for closed issues
  • Total cost of issues by type