24.5 Using Software to assist in Project Risk ...
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Project management software are typically used for managing schedules and budgets, however it can be very helpful in identifying and managing risk in the project plan. |
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Most organizations use software to create and update information in their risk register. |
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The risk register can be a simple document, spreadsheet, or a database system. |
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However the most effective format is a table. |
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Hence, tools used to create risk registers are often simple such as Microsoft Word or Excel files. |
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More sophisticated risk management software can be used to assist in project risk management such as Monte Carlo simulation software. |
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The Monte Carlo simulation software analyzes risk to show many possible outcomes in a spread sheet model, and then can be presented in the form of a frequency distribution graph. |
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It mathematically computes various future scenarios and then illustrates the risks associated with each scenario, facilitating the judgment of which risks to take and which to avoid. |
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Add-on software can also be purchased to perform Monte Carlo simulation using Excel. |
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Other software packages has also been developed for project risk management; however project teams should not rely completely on such tools, as if a risk is not identified it can't be managed. |