Risk Breakdown Structure (RBS)
A risk breakdown structure (RBS) is a hierarchical representation of potential sources of risk, organized by category and subcategory, used to structure and guide the risk identification process.
Explanation
The RBS provides a systematic framework for identifying and categorizing risks. It functions similarly to the work breakdown structure (WBS) but instead of decomposing project work, it decomposes risk sources. A typical RBS might have top-level categories such as Technical, External, Organizational, and Project Management, each broken down into more specific subcategories.
For example, the Technical category might include subcategories like requirements, technology, complexity, and performance. The External category might include regulatory, market, supplier, and weather. The Organizational category might cover resources, funding, and prioritization.
The RBS is defined in the risk management plan and serves as a prompt list during risk identification workshops to ensure comprehensive coverage. It also provides the categorization structure used in qualitative analysis and can be used for reporting—showing which branches of the RBS contain the most risk exposure.
Key Points
- •Hierarchical decomposition of risk sources, similar to WBS for scope
- •Typical top-level categories: Technical, External, Organizational, Project Management
- •Defined in the risk management plan
- •Used as a checklist during Identify Risks and for categorization in analysis
Exam Tip
The RBS is analogous to the WBS. Just as the WBS ensures all scope is captured, the RBS ensures all risk sources are considered. Know the typical top-level categories.
Frequently Asked Questions
Related Topics
Risk Categorization
Risk categorization is the grouping of risks by their source, affected area, or other useful criteria to identify concentrations of risk exposure and common root causes.
Plan Risk Management
Plan Risk Management is the process of defining how to conduct risk management activities for a project. It produces the risk management plan, which guides all subsequent risk processes.
Identify Risks
Identify Risks is the process of determining which risks may affect the project and documenting their characteristics. It is performed iteratively throughout the project.
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