Risk Identification Techniques

Risk Identification Techniques: A Complete Guide for PMI-RMP

Why Risk Identification Techniques Are Important

Risk identification is a cornerstone of effective project management. Without properly identifying risks, projects become vulnerable to unexpected issues that can derail timelines, inflate budgets, and compromise deliverables. Risk identification techniques provide structured methods to uncover potential threats and opportunities, enabling proactive rather than reactive management approaches.

The importance of mastering these techniques for the PMI-RMP certification cannot be overstated—approximately 15-20% of exam questions cover risk identification processes and techniques.

What Are Risk Identification Techniques?

Risk identification techniques are systematic methods used to identify and document risks that might affect a project. These techniques help project teams look beyond obvious risks to discover those that might otherwise remain hidden until they impact the project.

The PMI-RMP exam focuses on several key risk identification techniques:

1. Documentation Reviews - Examining project documents, historical information, lessons learned from previous projects, and contracts to identify potential risks.

2. Information Gathering Techniques:
• Brainstorming - Group creativity technique to generate a large number of risks in a short timeframe
• Delphi Technique - Structured communication technique using anonymous expert opinions to reach consensus
• Interviewing - Directly questioning stakeholders and subject matter experts
• Root Cause Analysis - Identifying underlying causes of risks
• SWOT Analysis - Examining Strengths, Weaknesses, Opportunities, and Threats

3. Checklist Analysis - Using pre-developed risk checklists based on historical information and knowledge from previous projects.

4. Assumption Analysis - Exploring the validity of assumptions and identifying risks from inaccurate assumptions.

5. Diagramming Techniques:
• Cause and Effect Diagrams (Ishikawa or Fishbone Diagrams)
• System or Process Flow Charts
• Influence Diagrams

6. SWOT Analysis - Examining project Strengths, Weaknesses, Opportunities, and Threats.

How Risk Identification Techniques Work

Risk identification typically follows this process:

Step 1: Gather the project team and key stakeholders.

Step 2: Review project documents, including the project scope, schedule, budget, and resource plans.

Step 3: Select and apply appropriate identification techniques based on project complexity and team familiarity.

Step 4: Document all identified risks in the risk register, including potential causes and effects.

Step 5: Categorize risks (technical, external, organizational, project management).

Step 6: Ensure risks are clearly described using an "if-then" format that articulates both the risk event and its potential impact.

Example: A brainstorming session for a software development project might identify risks like "If key developers leave the project, then critical functionality may be delayed" or "If requirements are not clearly defined, then scope creep may occur."
Exam Tips: Answering Questions on Risk Identification Techniques

1. Understand the Context: Read the scenario carefully to determine which risk identification technique would be most appropriate given the specific situation.

2. Know the Differences: Be clear about what distinguishes each technique:
• Brainstorming is useful for initial identification with groups
• Delphi Technique helps avoid groupthink and is best when anonymous input is valuable
• Interviewing works well for detailed risk exploration with individuals

3. Remember Application Scenarios:
• Use Documentation Reviews when historical information is available
• Apply Diagramming Techniques for complex relationships between risks
• Choose SWOT Analysis when considering both internal and external factors

4. Recognize Limitations: Know that no single technique is comprehensive—a combination of techniques is usually best practice.

5. Focus on Inputs and Outputs: Understand what information is needed for each technique and what deliverables result.

6. Watch for Process Questions: Many exam questions focus on the correct sequence of activities within the risk identification process.

7. Practice with Scenarios: Develop familiarity with applying techniques to different project situations.

Common Exam Question Types:

• Scenario-based questions asking which technique is most appropriate
• Questions about the benefits or limitations of specific techniques
• Questions about who should be involved in particular techniques
• Questions testing understanding of how techniques are properly implemented

Remember: The exam will test both your knowledge of techniques and your ability to apply them appropriately in given scenarios. Focus on understanding when and why to use each technique rather than simply memorizing definitions.