Risk breakdown structure is a project management artifact that helps to more clearly identify and analyze risks in order to make risk management more effective and efficient.
But, how does it do it? The first condition for risk management is to know what the risks are. For this purpose, it is useful to examine the risk records created in the identify risks processes. However, this document is not sufficient to understand the risks correctly and to determine the points to be focused on in risk management.
Risk breakdown structure is categorized as a hierarchical project management artifact and it may be used in the following performance domains:
The risk breakdown structure, in addition to qualitative and quantitative risk analyses, treats the identified risks holistically and provides us with a general picture of the orientation, tendency to recurrence, and types of risks. The risk breakdown structure also has an organized structure, which is standardized just like work breakdown structure, and the resource breakdown structure, like other hierarchical artifacts, is standardized. Similarly, the risk breakdown structure has a function that facilitates the management of complex risk patterns by breaking them down into parts for better understanding.
Preparing a good Risk breakdown structure is quite easy when the right techniques are used and the right approach is determined. The first thing to do at this point is to identify the main risk categories that apply to the project.
If it is necessary to give an example, construction projects, on the other hand, categories such as environment, public permits, customer, and communication will be determined and the risks belonging to these categories will be detailed. The project team begins to create RBS by dividing certain risks in the main categories into manageable and understandable parts.
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