Definition
A Risk Breakdown Structure (RBS) is a hierarchical chart that categorizes project risks by source, type, or impact. It helps teams analyze risks systematically.
Key Risk Categories
📌 Technical Risks – Software bugs, hardware failures.
📌 External Risks – Market changes, regulatory issues.
📌 Organizational Risks – Budget cuts, staffing problems.
Example in Action
A construction company identifies risks:
✔ Technical – Faulty materials.
✔ External – Bad weather.
✔ Organizational – Contractor delays.
By categorizing risks, they develop custom mitigation plans for each.
Benefits
✔ Structured approach to risk assessment.
✔ Improves risk prioritization for better decision-making.
✔ Enhances stakeholder communication by presenting risks visually.
Challenges
❌ Requires detailed analysis, which can be time-consuming.
❌ May overlook unpredictable risks, like economic downturns.
