# Project Risk Analysis Matrix

## Scope Risks (1-7)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 1 | Scope is incomplete | Scope Risk | Medium | High | Mitigate - Conduct thorough requirements analysis and stakeholder workshops |
| 2 | Scope is unclear | Scope Risk | Medium | High | Mitigate - Develop detailed scope statements and get formal approval |
| 3 | Tasks get added during project without approval (scope creep) | Scope Risk | High | Medium | Mitigate - Implement strict change
control procedures |
| 4 | Stakeholders demand additional scope | Scope Risk | Medium | Medium | Mitigate - Establish clear scope boundaries and change
management process |
| 5 | Project sponsor has different expectation of scope | Scope Risk | Medium | High | Mitigate - Regular communication and scope
validation sessions |
| 6 | Subconsultant/subcontractor scope definition is not clear | Scope Risk | Medium | Medium | Mitigate - Develop detailed SOWs and
hold alignment meetings |
| 7 | Project sponsor/executive demand additional scope without supplying additional funds | Scope Risk | Medium | High | Mitigate -
Establish scope-budget linkage policies and escalation procedures |

## Technical Risks (8-21)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 8 | Quality of product/service does not meet expectations | Technical Risk | Medium | High | Mitigate - Implement quality assurance
processes and testing protocols |
| 9 | Technical expertise of checking/reviewing not adequate | Technical Risk | Medium | High | Mitigate - Hire qualified reviewers or
provide additional training |
| 10 | Technical errors | Technical Risk | Medium | Medium | Mitigate - Implement peer review and quality control processes |
| 11 | Technical omissions | Technical Risk | Medium | Medium | Mitigate - Use comprehensive checklists and review procedures |
| 12 | Required technical training or learning curve is longer than anticipated | Technical Risk | Medium | Medium | Mitigate - Assess skills
early and plan for extended training periods |
| 13 | Design is not feasible | Technical Risk | Low | High | Mitigate - Conduct feasibility studies and prototyping |
| 14 | Design is not practical | Technical Risk | Low | High | Mitigate - Involve end-users in design review and validation |
| 15 | Design is difficult or impossible to build | Technical Risk | Low | High | Mitigate - Engage construction/implementation experts in
design phase |
| 16 | Design lacks features or flexibility | Technical Risk | Medium | Medium | Mitigate - Conduct thorough requirements analysis and user
feedback sessions |
| 17 | Design standards are not met | Technical Risk | Low | Medium | Mitigate - Establish clear design standards and review checkpoints |
| 18 | Standards change during project | Technical Risk | Low | Medium | Accept - Monitor regulatory changes and adapt as necessary |
| 19 | Contractor does poor quality work | Technical Risk | Medium | High | Mitigate - Implement quality control measures and contractor
vetting |
| 20 | Contractor uses poor quality suppliers | Technical Risk | Medium | Medium | Mitigate - Require contractor to provide supplier quality
certifications |
| 21 | Technological change impacts deliverables | Technical Risk | Medium | Medium | Accept - Monitor technology trends and adapt
project approach |

## Schedule Risks (22-27)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 22 | Project is behind schedule | Schedule Risk | High | High | Mitigate - Implement robust project scheduling and monitoring |
| 23 | Resources cannot be secured as anticipated | Resource Risk | Medium | High | Mitigate - Develop resource contingency plans and
early procurement |
| 24 | Stakeholders demand excessive consultation/communication | Schedule Risk | Medium | Medium | Mitigate - Establish
communication protocols and boundaries |
| 25 | Contractor starts late | Schedule Risk | Medium | Medium | Mitigate - Include start date penalties in contracts |
| 26 | Contractor finishes late, pays penalty, delays others | Schedule Risk | Medium | High | Mitigate - Build schedule buffers and have
backup contractors |
| 27 | Delay due to worker injury or fatality | Schedule Risk | Low | High | Mitigate - Implement comprehensive safety programs |

## Risk Management Risks (28-31)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 28 | Important risks are not identified | Risk Management | Medium | High | Mitigate - Conduct comprehensive risk identification
workshops |
| 29 | Response plans are inadequate | Risk Management | Medium | Medium | Mitigate - Develop detailed response plans and test them |
| 30 | Risks are not shared with stakeholders | Risk Management | Medium | Medium | Mitigate - Establish regular risk communication
protocols |
| 31 | Unauthorized risks are added to project by sponsors/executives | Risk Management | Medium | High | Mitigate - Implement risk
approval and governance processes |

## Financial/Market Risks (32-37)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 32 | The product will not realize enough Return on Investment (ROI) | Financial Risk | Medium | High | Mitigate - Conduct thorough
business case analysis and market research |
| 33 | Sales are insufficient | Market Risk | Medium | High | Mitigate - Develop comprehensive marketing strategy and sales forecasts |
| 34 | The project's costs are not recovered | Financial Risk | Medium | High | Mitigate - Implement cost control measures and regular
financial reviews |
| 35 | Market size shrinks | Market Risk | Medium | High | Accept - Monitor market conditions and adapt strategy |
| 36 | Competitors introduce competing products | Market Risk | Medium | Medium | Accept - Maintain competitive analysis and
differentiation strategy |
| 37 | Funding is cut | Financial Risk | Low | High | Mitigate - Secure funding commitments and develop contingency funding |

## Communication Risks (38-41)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 38 | Stakeholders do not receive sufficient communication | Communication Risk | Medium | Medium | Mitigate - Develop comprehensive
communication plan |
| 39 | Project sponsor/executives are not aware of project progress | Communication Risk | Medium | High | Mitigate - Implement regular
executive reporting and dashboards |
| 40 | Regulatory authorities not contacted early enough | Communication Risk | Medium | High | Mitigate - Develop regulatory
engagement timeline and checklist |
| 41 | Inspectors and contractors don't get along | Communication Risk | Medium | Medium | Mitigate - Facilitate relationship building and
clear communication protocols |

## Vendor/Contractor Risks (42-50)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 42 | Insufficient vendors to get a good price | Vendor Risk | Medium | Medium | Mitigate - Expand vendor network and consider
alternative sourcing |
| 43 | Low quality of vendors | Vendor Risk | Medium | High | Mitigate - Implement vendor qualification and evaluation processes |
| 44 | Vendor's contract introduces risk | Vendor Risk | Medium | Medium | Mitigate - Conduct thorough contract review and risk
assessment |
| 45 | Vendor requires additional funds after contract signed | Vendor Risk | Medium | Medium | Mitigate - Include fixed-price clauses and
change control procedures |
| 46 | Contractor goes bankrupt during project | Vendor Risk | Low | High | Transfer - Require contractor bonding and insurance |
| 47 | Contractor walks away | Vendor Risk | Low | High | Transfer - Include completion bonds and penalties in contracts |
| 48 | Contractor does poor quality job | Vendor Risk | Medium | High | Mitigate - Implement quality control and contractor vetting |
| 49 | Contractor performs unit price work without authorization | Vendor Risk | Medium | Medium | Mitigate - Implement work
authorization procedures |
| 50 | Contractor does less work on lump sum bid item | Vendor Risk | Medium | Medium | Mitigate - Define clear scope and quality
standards in contracts |

## Stakeholder Risks (51-59)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 51 | Stakeholders delay project due to unmet concerns | Stakeholder Risk | Medium | High | Mitigate - Proactive stakeholder engagement
and issue resolution |
| 52 | Stakeholders introduce additional cost or scope that was unknown at project planning stage | Stakeholder Risk | Medium | High |
Mitigate - Comprehensive stakeholder analysis and requirements gathering |
| 53 | Stakeholders fight with each other | Stakeholder Risk | Medium | Medium | Mitigate - Facilitate stakeholder alignment and conflict
resolution |
| 54 | Regulatory authorities slow to grant approval | Regulatory Risk | Medium | High | Mitigate - Early engagement and allow buffer time
for approvals |
| 55 | Regulatory authorities add cost – require additional studies, etc. | Regulatory Risk | Medium | Medium | Mitigate - Understand
regulatory requirements and budget contingencies |
| 56 | Regulatory authorities do not approve project | Regulatory Risk | Low | High | Mitigate - Early regulatory consultation and compliance
verification |
| 57 | Stakeholders ignore project communications | Stakeholder Risk | Medium | Medium | Mitigate - Develop engaging communication
methods and escalation procedures |
| 58 | Stakeholder turnover | Stakeholder Risk | Medium | Medium | Mitigate - Document decisions and maintain stakeholder relationship
continuity |
| 59 | Project sponsor/organization doesn't approve of design | Stakeholder Risk | Medium | High | Mitigate - Regular design reviews and
approval checkpoints |

## Cost Risks (60-69)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 60 | Cost estimates are too low | Cost Risk | High | High | Mitigate - Use detailed estimating methods and include contingencies |
| 61 | Costs of suppliers or equipment was not locked in | Cost Risk | Medium | Medium | Mitigate - Negotiate price locks or hedging
strategies |
| 62 | Cost of supplies/equipment changes | Cost Risk | Medium | Medium | Accept - Monitor market prices and adjust budget accordingly
|
| 63 | Manpower costs change | Cost Risk | Medium | Medium | Accept - Monitor labor market and adjust compensation |
| 64 | Contractor payment/progress estimates incorrect | Cost Risk | Medium | Medium | Mitigate - Implement accurate progress
measurement systems |
| 65 | Administrative and overhead costs underestimated | Cost Risk | Medium | Medium | Mitigate - Use historical data and detailed
overhead analysis |
| 66 | Project ROI not as anticipated | Financial Risk | Medium | High | Mitigate - Regular financial performance monitoring and adjustments
|
| 67 | Interest rates affect amortization of assets | Financial Risk | Medium | Medium | Accept - Monitor interest rate trends and consider
hedging |
| 68 | Technological change improves cost structure of project | Financial Risk | Low | Medium | Accept - Monitor technology developments
and adapt if beneficial |
| 69 | WCB premium increase due to worker injury or fatality | Cost Risk | Low | Medium | Mitigate - Implement comprehensive safety
programs |

## Resource/Organizational Risks (70-76)

| Risk # | Description | Type of Risk | Probability | Impact | Risk Response Strategy |

|--------|-------------|--------------|-------------|---------|----------------------|
| 70 | Unable to secure required project team | Resource Risk | Medium | High | Mitigate - Early resource planning and alternative sourcing
strategies |
| 71 | Insufficient funds to pay project team's demands | Resource Risk | Medium | High | Mitigate - Secure adequate funding and negotiate
reasonable compensation |
| 72 | Project team turnover | Resource Risk | Medium | Medium | Mitigate - Implement retention strategies and knowledge transfer
procedures |
| 73 | Organizational priorities remove project members | Resource Risk | Medium | High | Mitigate - Secure resource commitments from
senior management |
| 74 | Turnover of project sponsor or organization | Organizational Risk | Low | High | Mitigate - Document project rationale and maintain
 multiple sponsor relationships |
| 75 | Worker injury | Safety Risk | Medium | Medium | Mitigate - Implement comprehensive safety programs and training |
| 76 | Corporate support for project disappears | Organizational Risk | Low | High | Mitigate - Maintain strong business case and regular
executive communication |

## Risk Response Strategy Definitions

- **Mitigate**: Take action to reduce the probability or impact of the risk

- **Accept**: Acknowledge the risk but take no proactive action

- **Transfer**: Shift the risk to another party (insurance, contracts, etc.)

- **Avoid**: Eliminate the risk by changing the project approach

## Probability and Impact Scale

**Probability:**

- Low: 0-30% chance of occurrence

- Medium: 31-70% chance of occurrence

- High: 71-100% chance of occurrence

**Impact:**

- Low: Minor impact on project objectives

- Medium: Moderate impact requiring management attention

- High: Major impact that could jeopardize project success