The document discusses risk management for projects. It defines risk as an uncertain event that could affect achieving project objectives. Risk management is described as a process to proactively understand and manage risks to optimize success by minimizing threats and maximizing opportunities. The document outlines the risk management cycle of identification, assessment, prioritization, mitigation, and monitoring. It also discusses assessing and categorizing risks qualitatively and quantitatively, and taking actions to avoid, reduce, share, or retain risks.

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2. UN Habitat - Kenya Railway Corporation
Definition of “Risk”
“An uncertain event or set of circumstances that, should it
occur, will have an effect on the achievement of the project
objectives”

3. UN Habitat - Kenya Railway Corporation
Risk Management
Risk management is a process that allows individual risk
events and overall risk to be understood and managed
proactively, optimising success by minimising threats and
maximising opportunities.

4. UN Habitat - Kenya Railway Corporation
We are all Risk Managers

5. UN Habitat - Kenya Railway Corporation
We are all Risk Managers
“An uncertain event or set of circumstances that, should it occur,
will have an effect on the achievement of the project objectives”

6. UN Habitat - Kenya Railway Corporation
What can happen?
“An uncertain event or set of circumstances that, should it occur,
will have an effect on the achievement of the project objectives”
??

7. UN Habitat - Kenya Railway Corporation
What is a Risk? What is an Issue?

8. UN Habitat - Kenya Railway Corporation
Risk Cycle
Identification
Monitor Assessment
Mitigation Prioritise

9. UN Habitat - Kenya Railway Corporation
Risk Process

10. UN Habitat - Kenya Railway Corporation
Hierarchy of Risk
Strategic
Programme
Project

11. UN Habitat - Kenya Railway Corporation
Risk Appetite
• Risk averse, where risk is avoided;
• Risk seeking, where risk is actively sought;
• Risk neutral, where risk is neither actively sought nor avoided.

12. UN Habitat - Kenya Railway Corporation
Assessment
• Qualitative
• Quantitative
• Priority
• Risk Index = Probability of risk occurring x Impact

13. UN Habitat - Kenya Railway Corporation
Mitigation Action
• Avoidance (eliminate, withdraw from or not become involved)
• Reduction (optimize – mitigate)
• Sharing (transfer – outsource or insure)
• Retention (accept and budget)

14. UN Habitat - Kenya Railway Corporation
Categories
• Finance / Funding
• Time
• Political
• Resource
• Quality
• Delivery & Operational