Before I explain the Risks feature of Primavera P6, note that one can not really use or benefit from this feature unless you have knowledge and skills on how to calculate risks, identify their impact, probability and then calculate realistic contingency reserve for cost and schedule, for each activity.
Interested ones who want to learn about the Risks feature in Primavera, here is what this feature does:
First, note that there are always many risks in any progress, whether it is financial risk, schedule risk, contractor risk, or weather risk. A good plan is the one in which you have included contingency reserves after identifying risks and calculating their impact. A baseline plan is really complete and sent for approval when all risk calculation has been completed and incorporated in your schedule.
So what is the Risks feature in Primavera? Well, this feature serves like a risk register or risk log. Any data entered here does not affect your schedule or any other thing in Primavera automatically. In the Risks window, we define risk detail such as:
a) Probability of occurrence of risk
b) Impact of the risk to schedule, and cost
c) Risk Action plan, i.e what you will do if the risk occurs. There are many strategies that can be devised and approved, both for negative and positive risks.
For example, you may define a risk that a thunderstorm will happen next month, and will delay activity A, activity G and activity Z by 4, 8 and 2 days. You will also define how much extra cost you will incur if the activity delays. Besides, you can enter detailed description of the risk, cause and detail of its effect.
Action After Entering Risk Detail
As we have learnt above that the risk detail that you enter does not effect anything in Primavera, as it is not linked with activities, resources or any other thing. However, now you have detail of your risks documented right inside Primavera.
What needs to be done next is that the contingency reserve for schedule and cost that you have calculated, after analyzing probability and impact, you will enter that reserve to activity duration (or/and lag). This will make your project schedule risk-managed schedule that caters for all delays to be happened due to future risk impacts.
Other articles in Project Management
Free Guide/Tutorial on Primavera P6 24 January 2017
Learn About the Reflection Project in Primavera P6 22 January 2017
Oracle Primavera P6 Keyboard Shortcuts 13 December 2016
Primavera P6 PPM and EPPM: Best Application Environments 04 December 2016
Primavera PPM vs EPPM: Which One to Choose 04 December 2016