Risk Burndown graphs are very useful Communication Tool for seeing if the total project risk is increasing or decreasing over time. It allows stakeholders to see instantly if we are reducing project risk.
There are two key pieces of information which the Risk Burndown Graph shows immediately:
- Whether the overall level of risk in the project or program is decreasing over time (are we reducing project risk?)
- Whether individual risks are increasing in severity over time and whether new risks are being introduced.
|ExampleIn the example below, we can see that
· Funds Shortage increases as the project progresses. Hence Severity of this risk becomes more
· The risk severity of Visas of Offshore Resources not getting processed on time decreases as the time progresses
· The Risk Severity of Availability of Database Architect goes down over time
· The risk “Delivery of Servers on Time” increases over time since the hardware vendor delays the delivery of Servers. As Project project progresses, if the vendor delays further then the severity becomes very high.
· Risk of Changing Requirements goes down over time since customer gets clarity on requirement. Hence the risk severity also goes down
· As the projects progresses, the risk of Availability of Expert Developers goes down and hence severity also goes down.