A Risk Breakdown Structure, or RBS, is a diagram that shows how possible risks in a project are organized by type and level of detail. It is a tool used in project management to help find, analyze, and deal with risks in a structured and organized way.
The RBS is usually made during the planning phase of risk management for a project, and it is used as a guide throughout the project. The RBS breaks risks down into smaller, easier-to-handle pieces and helps make sure that none are missed. The RBS also gives a clear and complete picture of how the project’s risks are spread out.
Usually, the RBS has more than one level of risk categories, and each level gets more specific and detailed. Most of the time, the most general categories, like external risks, financial risks, technical risks, etc., are at the highest level. Then, each category is broken down into smaller, more specific groups and risks.
The RBS can be used to find risks in a structured way, focusing on the risk’s cause instead of just the risk itself. This can help project teams find risks early on and come up with plans to deal with them or get rid of them.
Using the RBS, project teams can put risks in order of importance and make sure they have the right resources to deal with them. The RBS also has a framework for tracking and reporting on risk management activities. This makes sure that the risks are being actively managed throughout the project.
In summary, the Risk Breakdown Structure is an important risk management tool that helps project teams find, analyze, and deal with risks in a structured and organized way over the course of the project.
Usage
It is used in Risk Management
