Extended risk-analysis model for activities of the project

Area of Science:

• Engineering Management
• Risk Analysis
• Product Development

Background:

• Project management is a standard operational mode for many companies, particularly for recurring product/service orders.
• Effective risk management is crucial for the success of these projects, even when they are cyclical.
• Existing risk analysis models often focus on probability and consequences, potentially overlooking other critical factors.

Purpose of the Study:

• To present an extended risk-analysis model specifically designed for new product/service projects.
• To introduce a novel approach that enhances traditional risk assessment methods.
• To detail a solution developed at the Faculty of Mechanical Engineering in Ljubljana, Slovenia.

Main Methods:

• The proposed model extends traditional risk analysis by adding a third parameter: the estimated incidence of risk events.
• Risk analysis is based on evaluating the probability of risk events, their consequences, and their incidence.
• Status indicators are used to guide the project team in preparing preventive and corrective measures.

Main Results:

• The extended model provides a more comprehensive assessment of activity risk levels.
• The inclusion of event incidence offers a more nuanced understanding of potential project disruptions.
• The model facilitates the timely identification of risks and the activation of mitigation strategies.

Conclusions:

• The enhanced risk-analysis model improves proactive risk management in product/service projects.
• Timely warnings of potential risk events empower project managers and teams to implement necessary measures.
• This approach leads to more robust and resilient project execution, minimizing negative impacts.