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Guide to Risk Breakdown Structure (RBS) in Project Risk Analysis

The Risk Breakdown Structure (RBS) is a crucial tool in project risk analysis. Following the PMBOK Guide Seventh Edition, it becomes instrumental in dissecting and assessing different types of risks a project can encounter into various levels.

Why is RBS important?
RBS is important because it helps in early identification of risks, categorising them, and focusing on risk management efforts effectively. Further, using RBS also promotes a comprehensive understanding of risks and allows proactive control and mitigation strategies.

What is RBS?
RBS is a hierarchical representation of project risks, starting from an overall risk (at the top level) down to detailed risk categories and eventually to individual risks (at the bottom level).

How does RBS work?
RBS works by dividing and further subdividing overall project risks into respective categories, sub-categories and individual risks. The risk categories are based on various factors such as project phase, department, or type of risk.

Exam Tips: Answering Questions on Risk Breakdown Structure (RBS)

  • Understand the purpose of RBS and how it's used in project risk management.
  • Be familiar with the structure of an RBS, i.e., the top-level major risk categories and the subsequent division into sub-categories and individual risks.
  • Understand that risks in an RBS are not listed in any particular order of importance or impact.
  • Be mindful of scenarios where risks may fall into more than one category. In such cases, consider the overall context of the question to determine the most appropriate risk category.

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Risk Breakdown Structure (RBS) practice test

The Risk Breakdown Structure (RBS) is a hierarchical representation of identified risks, organized into categories and sub-categories based on their sources, nature, or areas of impact. The RBS provides a structured approach to risk management, as it helps project managers visualize the relationships between risks, identify potential root causes, and better understand the risk landscape. By creating an RBS, project managers can ensure that all relevant risks are taken into account, facilitating more comprehensive risk identification, analysis, planning, monitoring, and control. The RBS can also serve as a useful communication tool for stakeholders, as it aids in providing a clear and concise overview of the project's risk profile.

Time: 5 minutes   Questions: 5

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  • Earn 35 PDUs needed for your PMP certification
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  • Unlock Effortless PMP preparation: 5 full exams.
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  • Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!