Original subtitles

Hello everyone and welcome to Part D of Session 3 in our course on Project Risk

Management.

In this part, we will focus on a major category of risks that can significantly

impact your project's schedule, quality, and even success.

Resource risks often stem from people, equipment, or infrastructure issues, and

if they are not identified early, they can cause costly delays or project

failure. Let's explore how to recognize these risks and incorporate proactive

strategies into your risk management plan.

Resource risks are the second most critical category of risks after scope

They are highly prevalent and impactful.

In fact, they make up over 30 % of the cases recorded in the PERIL database,

they contribute to more than a quarter of the total impacting projects.

On average, when a resource risk occurs, it can delay a project by more than six

weeks, about the same as a scheduled one.

Understanding the source of these risks helps us better anticipate and prepare

for them throughout the project lifecycle.

Resource risks generally fall into three major categories.

The first is people.

These are risks that come from within the project team, such as skill gaps,

turnovers, or performance issues.

The second is outsourcing. These risks come from relying on third parties

outside of the team. This could be external consultants, vendors, or

contractors. And the risk arises when they don't deliver as expected.

And the third category is money. This is the least common, but it tends to have

the highest average impact.

It includes issues like budget shortfalls or delayed funding that limit

availability.

This chart illustrates how different types of resources affect the overall

project schedule.

The most damaging risk is outsourcing with late or poor output, which caused

more than 500 weeks of cumulative delay across projects in the PERI database.

This is followed by risks like permanent staff loss and money limitations, both

of which also contribute heavily to project delays.

In contrast, risks like outsourcing delays at the start, low motivation, and

late staff arrival tend to have much smaller cumulative impacts.

People -related risks are the most common type of resource risk, making up

20 % of all records in the PERIL database and over half of all resource

risks. These risks are grouped into five subcategories.

Permanent staff loss.

like as resignation, reassignment, or long -term illness, temporary staff loss

due to short absence like travel or minor health issues, queuing, which

when the key expertise isn't available on time, late start, often caused by

delays in the earlier project, and motivation, which includes issues like

of engagement or team cohesion, especially in long projects.

In this example, a company starts a six -month CRM project with an internal dev

team, an external UI contractor, and a fixed budget. But resource risks show up

quickly. A senior developer suddenly leaves and there is no quick

which slows down the work.

Then the UI contractor delivers poor quality work late, causing delays and

rewards. On top of that, a budget cut leaves only two -thirds of the planned

funds, forcing the team to reduce the scope and extend the timeline.

The project ends up taking nine months with fewer features and lower quality,

showing how resource risks can seriously impact outcomes.

Some resource -related risks are rare but cause serious damage when they

These high -impact events are called resource black swans. The biggest

delay comes from money limitations with 276 weeks of impact.

But when we look at the percentage within each category, low team

stands out the most, causing 78 % of the delays in each group.

As you can see, these hard -to -predict risks are responsible for 44 % of all

resource -related delays, so early planning is essential.

To manage resource -related schedule reels, it is important to plan ahead.

Start by listing all the roles your project needs and check if any are still

field. Watch for overloaded team members and tasks that lack enough support,

like tools or time.

Be cautious with outsourced work as any delays can impact the entire project.

Finally, get budget approvals early and make sure all expected costs are covered

from the beginning.

and before we continue take a moment to pause and review the suggested readings

for this session let's take a moment to review what you need to

complete for this part of the course you will be posting your response in

discussion board too so be sure to share your thoughts and engage with your

peers

work on caseload 31 and also continue working on project milestone 2 and

do not miss scenario review 2 it will give you another chance to see how risk

identification plays out in a real world scenario and

that wraps up part d of our session on project risk management if you have any

questions be sure to write them down before moving on when you are ready go

ahead and review scenario 2. thank you so much for watching this video