You%20are%20an%20AI%20assistant.%20Information%20will%20be%20provided%20to%20help%20answer%20the%20user's%20question.%20USE%20ONLY%20THE%20REFERENCE%20INFORMATION%20PROVIDED%20TO%20ANSWER%20THE%20QUESTION.%20Be%20very%20specific%20in%20your%20answer%20and%20focus%20only%20on%20the%20question.%20Do%20not%20reference%20the%20material%20provided%20in%20your%20response.%0AUser%20question:%20Compare%20risks,%20assumptions%20and%20issues%20%0AReference%20information:%20%0A%23%23%23%0AThere%20are%20two%20key%20characteristics%20of%20risks%20and%20assumptions.%20First,%20there%20must%20be%20some%20uncertainty%20to%20the%20event.%20If%20there%20is%20100%25%20chance%20of%20an%20event%20occurring,%20it%20is%20simply%20a%20fact.%20If%20there%20is%20a%200%25%20chance%20of%20the%20event%20occurring,%20it%20is%20fiction.%20Neither%20are%20risks%20or%20assumptions.%20%20%0ASecond,%20assumptions%20and%20risks%20are%20both%20outside%20the%20total%20control%20of%20the%20project%20team.%20If%20the%20event%20is%20within%20the%20control%20of%20the%20project%20team%20it%20is%20neither%20an%20assumption%20nor%20a%20risk.%20It%20should%20simply%20be%20managed%20as%20a%20part%20of%20your%20schedule.%20%20%0AOne%20way%20to%20identify%20important%20assumptions%20is%20to%20perform%20a%20risk%20assessment%20and%20look%20at%20low-risk%20items.%20Most%20of%20these%20low%20risks%20are%20not%20worth%20mentioning,%20but%20some%20will%20have%20significant%20implications%20if%20events%20do%20not%20turn%20out%20as%20you%20think.%20These%20are%20the%20ones%20that%20you%20can%20document%20as%20assumptions.%20%20%0AReview%20the%20following%20examples%20for%20more%20clarity%20on%20assumptions%20and%20risks.%20%20%0AStatement%20%20%0AAssumption,%20Risk%20or%20Other%3F%20%20%0AStrong%20support%20for%20this%20initiative%20from%20our%20executive%20sponsor.%20%20%0ADepending%20on%20the%20project,%20there%20could%20be%20a%20high%20degree%20of%20risk%20in%20this%20statement%20(risk)%20or%20very%20little%20(assumption).%20%20%0AThe%20production%20servers%20will%20be%20installed%20by%20the%20vendor%20before%20we%20are%20ready%20for%20testing.%20%20%0ASince%20there%20is%20a%20vendor%20involved,%20this%20is%20not%20totally%20within%20the%20control%20of%20the%20project.%20Depending%20on%20the%20project,%20there%20could%20be%20a%20high%20degree%20of%20uncertainty%20in%20this%20statement%20(risk)%20or%20very%20little%20(assumption).%20%20%0AThe%20concrete%20floor%20is%2012%20inches%20deep.%20%20%0AThis%20statement%20is%20a%20fact%20or%20a%20requirement,%20and%20not%20a%20risk%20or%20assumption.%20%20%0AWe%20will%20complete%20requirements%20before%20we%20begin%20design%20work.%20%20%0AThis%20is%20part%20of%20the%20project%20approach%20or%20schedule.%20It%20is%20not%20a%20risk%20or%20assumption%20because%20it%20is%20within%20the%20control%20of%20the%20project%20team.%20%20%0AOur%20vendors%20will%20be%20ready%20to%20support%20installation%20by%20October%201%20%20%0ASince%20there%20is%20a%20vendor%20involved,%20this%20is%20not%20totally%20within%20the%20control%20of%20the%20project.%20Depending%20on%20the%20project,%20there%20could%20be%20a%20high%20degree%20of%20uncertainty%20in%20this%20statement%20(risk)%20or%20very%20little%20(assumption).%20%20%0AWe%20must%20go%20to%20Pluto%20to%20get%20the%20supply%20of%20meteor%20fragments%20that%20this%20project%20requires.%20%20%0AThis%20is%20not%20a%20risk%20or%20assumption%20because%20there%20is%20no%20probability%20involved.%20It%20is%20a%20fiction%20(0%25%20true).%20%20%0AThe%20car%20must%20be%20able%20to%20withstand%20the%20force%20of%20a%20collision%20at%2040%20miles%20per%20hour.%20%20%0AThis%20statement%20is%20a%20requirement,%20and%20not%20a%20risk%20or%20assumption.%20It%20describes%20a%20deliverable.%20%20%0AIt%20is%2060%20miles%20from%20one%20project%20team%20location%20to%20the%C2%A0other.%0ACheck%20all%20medium-level%20risks%20to%20determine%20if%20the%20impact%20is%20severe%20enough%20that%20they%20should%20have%20a%20risk%20response%20plan.%20%20%0A5%20%20%0AProject%20Manager%20%20%0AEvaluate%20any%20low-risk%20risks%20%20%0ANow%20check%20the%20low-level%20risk%20items%20and%20see%20if%20they%20should%20be%20listed%20as%20assumptions.%20In%20this%20way%20you%20recognize%20that%20there%20is%20a%20potential%20for%20problems,%20but%20because%20the%20risk%20is%20low,%20you%20are%20'assuming'%20that%20the%20condition%20will%20not%20occur.%20See%207.1.2.2%20Assumptions%20and%20Risks%20for%20more%20information.%20%20%0A6%20%20%0AProject%20Manager%20%20%0AMove%20the%20risk%20plan%20activities%20to%20the%20project%20schedule%20%20%0AMove%20the%20activities%20associated%20with%20the%20Risk%20Plans%20to%20the%20project%20schedule.%20You%20will%20also%20add%20the%20people%20assigned,%20effort%20hours,%20start%20dates,%20etc.%20Moving%20the%20activities%20to%20the%20schedule%20should%20help%20ensure%20that%20the%20work%20is%20actually%20completed%20and%20keeps%20the%20schedule%20the%20primary%20focus%20of%20all%20work%20planning%20and%20monitoring.%20%20%0AOngoing%20Processes%20%20%0ARisk%20Monitoring%20and%20Control%20(7.1.1.P2)%20%20%0A7%20%20%0AProject%20Manager%20%20%0AMonitor%20the%20current%20risk%20plans%20%20%0AThe%20project%20manager%20needs%20to%20monitor%20the%20Risk%20Plan%20to%20ensure%20the%20risks%20are%20managed%20successfully.%20New%20activities%20should%20be%20added%20if%20it%20looks%20like%20a%20risk%20is%20not%20being%20managed%20%20%0A8%20%20%0AProject%20Manager%20%20%0ALook%20for%20new%20risks%20%20%0AThe%20project%20manager%20also%20needs%20to%20periodically%20evaluate%20risks%20throughout%20the%20project.%20New%20risks%20may%20arise%20as%20the%20project%20is%20unfolding%20and%20some%20risks%20that%20were%20not%20identified%20up-front%20may%20become%20visible%20at%20a%20later%20date.%20It%20is%20also%20possible%20that%20previously%20identified,%20lower%20level%20risks%20(assumptions)%20may%20become%20medium%20or%20high%20risks%20at%20a%20later%20time.%20This%20ongoing%20risk%20evaluation%20should%20be%20performed%20on%20a%20regular%20basis.%0A-%20Is%20it%20a%20risk%20that%20the%20solution%20will%20not%20be%20available%20in%20certain%20countries%3F%20No,%20that%20is%20the%20potential%20effect%20of%20what%20might%20occur%20in%20this%20scenario.%0A-%20Is%20it%20a%20risk%20that%20the%20necessary%20telecommunications%20upgrades%20are%20not%20performed%20on%20time%3F%20Yes,%20this%20is%20where%20the%20uncertainty%20lies.%20%20%0ATry%20to%20Include%20Budget%20and%20Schedule%20for%20Unknown%20Risks%20(7.2.P5)%20%20%0AA%20project%20manager%20can%20request%20a%20risk%20contingency%20budget%20based%20on%20a%20qualitative%20risk%20analysis%20at%20the%20beginning%20of%20a%20project.%20However,%20risk%20identification%20is%20not%20something%20that%20only%20happens%20at%20the%20beginning%20of%20a%20project.%20The%20project%20manager%20needs%20to%20assess%20risks%20throughout%20the%20project.%20Therefore,%20it%20can%20make%20sense%20for%20medium%20to%20large%20projects%20to%20include%20time%20and%20budget%20for%20unknown%20risks%20as%20a%20part%20of%20your%20estimating%20process.%20This%20would%20especially%20make%20sense%20for%20projects%20that%20have%20a%20number%20of%20high-risk%20events.%20If%20you%20do%20an%20effective%20job%20of%20periodically%20reassessing%20risks,%20you%20may%20find%20new%20risks%20to%20manage%20that%20were%20not%20included%20in%20the%20original%20risk%20contingency%20budget.%20%20%0AInclude%20Team%20Members%20in%20Risk%20Identification%20(7.2.P6)%20%20%0AIf%20team%20members%20are%20familiar%20with%20the%20circumstances%20of%20the%20project,%20they%20can%20take%20an%20active%20role%20in%20identifying%20and%20evaluating%20project%20risks.%20Joint%20participation%20from%20the%20team%20can%20help%20identify%20project%20risks,%20lay%20out%20effective%20actions%20to%20manage%20the%20risk%20and%20provide%20consensus%20and%20buy-in%20for%20execution.%20%20%0AWeigh%20the%20Cost%20of%20the%20Risk%20Plan%20Against%20the%20Impact%20of%20the%20Risk%20(7.2.P7)%20%20%0AAll%20projects%20have%20some%20risk,%20and%20the%20activities%20associated%20with%20managing%20risks%20obviously%20have%20a%20cost.%20The%20project%20manager%20and%20customers%20should%20make%20sure%20that%20the%20effort%20and%20cost%20associated%20with%20managing%20the%20risks%20do%20not%20exceed%20the%20threat%20to%20the%20project%20if%20the%20risk%20occurs.%20For%20high%20risks,%20this%20is%20normally%20not%20the%20case.%20However,%20if%20you%20are%20managing%20medium%20risks,%20make%20sure%20that%20the%20costs%20and%20benefits%20associated%20with%20responding%20to%20the%20risk%20make%20sense%20for%20the%20project.%20It%20is%20possible%20that%20if%20the%20cost%20of%20managing%20the%20risk%20is%20greater%20than%20the%20risk%20impact,%20you%20may%20choose%20to%20just%20leave%20the%20risk%20alone%20and%20allow.%20%20%0AUnderstand%20the%20Risk%20Tolerance%20Level%20in%20Your%20Organization%20(7.2.P8)%0ARole%20%20%0AManaging%20Risk%20(Medium%20Projects)%20%20%0A1%20%20%0AProject%20Manager%20%20%0AIdentify%20all%20potential%20risks%20%20%0AWhen%20you%20are%20defining%20the%20project,%20perform%20a%20complete%20assessment%20of%20project%20risk.%20The%20risk%20assessment%20is%20done%20in%20two%20parts.%20First%20look%20at%20inherent%20risks.%20Inherent%20risks%20are%20based%20on%20the%20characteristics%20of%20the%20project%E2%80%93regardless%20of%20the%20specific%20deliverables%20being%20produced.%20These%20inherent%20risks%20can%20be%20identified%20on%20a%20checklist.%20See%207.2.1%20Inherent%20Risk%20Factors%20for%20further%20help%20and%20examples%20for%20defining%20inherent%20risks.%20%20%0ASecond,%20look%20for%20risks%20that%20are%20specific%20to%20your%20project.%20These%20risks%20cannot%20be%20identified%20on%20a%20checklist%20since%20they%20are%20specific%20to%20your%20project%20and%20may%20not%20apply%20to%20other%20projects.%20For%20instance,%20you%20may%20identify%20a%20risk%20of%20a%20key%20supplier%20going%20out%20of%20business%20or%20perhaps%20weather%20problems%20causing%20shipping%20delays%20or%20perhaps%20you%20will%20have%20difficulty%20finding%20resources%20with%20a%20specific%20set%20of%20skills.%20%20%0AThere%20are%20a%20couple%20ways%20to%20perform%20the%20risk%20assessment.%20The%20project%20manager%20can%20create%20an%20initial%20draft%20of%20project%20risks%20based%20on%20what%20he%20knows%20and%20circulate%20the%20draft%20for%20additions,%20changes%20and%20comments.%20Another%20technique%20is%20to%20gather%20all%20the%20key%20stakeholders%20and%20discuss%20these%20potential%20risks%20of%20the%20project%20all%20at%20once.%20This%20is%20a%20better%20alternative%20since%20it%20gets%20the%20key%20stakeholders%20all%20thinking%20about%20the%20project%20at%20the%20same%20time.%20You%20are%20more%20likely%20to%20end%20up%20with%20a%20more%20exhaustive%20list%20of%20real%20project%20risks.%20%20%0A2%20%20%0AProject%20Manager%20%20%0AAnalyze%20the%20risks%20using%20qualitative%20techniques%20%20%0AIn%20the%20first%20step%20of%20this%20process%20you%20identified%20all%20potential%20risks.%20Therefore,%20before%20you%20put%20risk%20plans%20in%20place,%20you%20need%20to%20determine%20which%20risks%20are%20the%20ones%20that%20you%20really%20want%20to%20focus%20on.%20The%20first%20step%20of%20risk%20analysis%20is%20qualitative%20risk%20analysis.%20See%207.1.1.1%20for%20more%20information%20on%20qualitative%20risk%20analysis.%20%20%0A3%20%20%0AProject%20Manager%20%20%0ACreate%20a%20response%20plan%20for%20each%20high-level%20risk%20%20%0AYou%20should%20first%20focus%20on%20creating%20a%20risk%20response%20plan%20for%20all%20high-level%20risks%20that%20you%20identified%20to%20ensure%20the%20risk%20is%20managed%20successfully.%20For%20further%20information%20on%20these%20alternatives%20see%207.2%20Manage%20Risks%20/%20Techniques.%20%20%0A4%20%20%0AProject%20Manager%20%20%0AEvaluate%20the%20medium-level%20risks%20%20%0ACheck%20all%20medium-level%20risks%20to%20determine%20if%20the%20impact%20is%20severe%20enough%20that%20they%20should%20have%20a%20risk%20response%20plan.%20%20%0A5%20%20%0AProject%20Manager%20%20%0AEvaluate%20any%20low-risk%20risks%0ARole%20%20%0AManaging%20Risk%20%20%0A1%20%20%0AProject%20Manager%20%20%0ACreate%20Risk%20Management%20Plan%20%20%0AStart%20the%20risk%20management%20process%20by%20understanding%20your%20overall%20approach%20for%20managing%20risks.%20This%20includes%20defining%20your%20risk%20management%20process,%20who%20is%20involved%20with%20the%20risk%20management%20process,%20what%20tools%20will%20be%20used,%20what%20roles%20will%20be%20involved,%20if%20any%20(project%20manager,%20risk%20officer,%20risk%20manager,%20etc.),%20the%20timeline%20and%20the%20effort%20associated%20with%20managing%20risks,%20the%20risk%20techniques%20to%20be%20used,%20etc.%20You%20can%20see%20more%20information%20at%207.1.2.1%20Create%20Risk%20Management%20Plan.%20%20%0AIdentify%20Risks%20(7.1.2.P3)%20%20%0A2%20%20%0AProject%20Manager%20%20%0AIdentify%20all%20potential%20risks%20%20%0AWhen%20you%20are%20defining%20the%20project,%20perform%20a%20complete%20assessment%20of%20project%20risk.%20The%20risk%20assessment%20is%20done%20in%20two%20parts.%20First%20look%20at%20inherent%20risks.%20Inherent%20risks%20are%20based%20on%20the%20characteristics%20of%20the%20project%E2%80%93regardless%20of%20the%20specific%20deliverables%20being%20produced.%20Inherent%20risks%20can%20be%20identified%20on%20a%20checklist.%20See%207.2.1%20Inherent%20Risk%20Factors%20for%20further%20help%20and%20examples%20for%20defining%20inherent%20risks.%20%20%0ASecond,%20look%20for%20risks%20that%20are%20specific%20to%20your%20project.%20These%20risks%20cannot%20be%20identified%20on%20a%20checklist%20since%20they%20are%20specific%20to%20your%20project.%20For%20instance,%20you%20may%20identify%20a%20risk%20of%20a%20key%20supplier%20going%20out%20of%20business%20or%20perhaps%20weather%20problems%20causing%20shipping%20delays%20or%20perhaps%20you%20will%20have%20difficulty%20finding%20resources%20with%20a%20specific%20set%20of%20skills.%20%20%0AThere%20are%20a%20couple%20ways%20to%20perform%20the%20risk%20assessment.%20The%20project%20manager%20can%20create%20an%20initial%20draft%20of%20project%20risks%20based%20on%20what%20he%20knows%20and%20circulate%20the%20draft%20for%20additions,%20changes%20and%20comments.%20Another%20technique%20is%20to%20gather%20all%20the%20key%20stakeholders%20and%20discuss%20these%20potential%20risks%20of%20the%20project%20all%20at%20once.%20This%20is%20a%20better%20alternative%20since%20it%20gets%20the%20key%20stakeholders%20all%20thinking%20about%20the%20project%20at%20the%20same%20time.%20%20%0APerform%20Qualitative%20Risk%20Analysis%20(7.1.2.P4)%20%20%0A3%20%20%0AProject%20Manager%20%20%0AAnalyze%20the%20risks%20using%20qualitative%20techniques%20%20%0AIn%20the%20first%20step%20of%20this%20process%20you%20identified%20all%20potential%20risks.%20Before%20you%20put%20risk%20plans%20in%20place,%20you%20need%20to%20determine%20which%20risks%20are%20the%20ones%20that%20you%20really%20want%20to%20focus%20on.%20The%20first%20step%20of%20risk%20analysis%20is%20qualitative%20risk%20analysis.%20See%207.1.1.1%20for%20more%20information%20on%20qualitative%20risk%20analysis.%20%20%0APerform%20Quantitative%20Risk%20Analysis%20(7.1.2.P5)%20%20%0A4%20%20%0AProject%20Manager%20%20%0A(Optional)%20Utilize%20quantitative%20analysis%20for%20all%20high-level%20risks%0A%23%23%23