Introduction to Risk Management

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Introduction to Risk Management

  1. 1. Project Risk Management<br />as.quazy@gmail.com<br />
  2. 2. Risk Management Includes:<br />Risk management includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring & control on a project.<br />as.quazy@gmail.com<br />
  3. 3. Project Risk Management Definition:<br />“Project Risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.” – PMBOK Guide – Fourth Edition.<br />Project objectives include scope, schedule, cost and quality.<br />as.quazy@gmail.com<br />
  4. 4. Role of Project Risk Management<br />Project Risk management is not an optional activity. It is essential to successful project management.<br />All process need to include treatment of project risks.<br />It builds upon and extends other project management processes.<br />as.quazy@gmail.com<br />
  5. 5. Role of Project Risk Management<br />Project Risk Management is not a substitute for the other project management processes.<br /> In the early stages of a project the level of risk exposure is at its maximum but information on the project risks is at minimum.<br /> Risk management continues to add value as project planning progresses. <br />as.quazy@gmail.com<br />
  6. 6. Role of Project Risk Management<br />Finally, throughout the project and during project closure, risk-related lessons are reviewed in order to contribute to organizational learning and support continuous improvement of Project Risk Management practice.<br />as.quazy@gmail.com<br />
  7. 7. Good Risk Management Practice<br />Project Risk Management is a valuable component of project management and it enhances the value of the other project management processes.<br />PRM should be conducted in a manner consistent with existing organizational practices and policies.<br /> PRM should be conducted in a way that is appropriate to the project.<br /> PRM should be conducted in compliance with internal and external requirements.<br />as.quazy@gmail.com<br />
  8. 8. Good Risk Management Practice<br />Project Risk Management is a valuable component of project management and it enhances the value of the other project management processes.<br />PRM should always be conducted on an ethical basis, in keeping with the Project Management code of ethics or conduct.<br /> PRM should be conducted on all projects<br />as.quazy@gmail.com<br />
  9. 9. Critical Success Factors for Project Risk Management<br />Risk Management Success<br />Recognize the Value of Risk Management<br />Individual Commitment / Responsibility<br />Open and Honest Communication<br />Organizational Commitment<br />Risk Effort Scaled to Project<br />Integration with Project Management<br />as.quazy@gmail.com<br />
  10. 10. Project Risk Management<br />Conclusion:<br />Principles of PRM should be appropriately applied based on the specifics of a project and the organizational environment. <br /> If implemented with good principles and with organizational commitment to taking the decisions and performing actions in an open and unbiased manner, PRM will benefits.<br />as.quazy@gmail.com<br />
  11. 11. Recap:<br />Risk management includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring & control on a project.<br />risk management planning<br />identification<br />monitoring & control<br />analysis<br />responses<br />as.quazy@gmail.com<br />

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