All language subtitles for KU PMGT 823 Session 3 (Part D)-Identifying Resource Risks

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