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Risk management

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created by Ms. Deepika - Engineer Business Support, PPM

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Risk management

  1. 1. RISK MANAGEMENT
  2. 2. What is Risk Management?• Risk is an uncertain event that may have a positive or negative impact on the project.• Risk Management is the process of identifying and migrating risk.
  3. 3. Why is it important?• Risk affects all aspects of your project – your budget, your schedule, your scope, the agreed level of quality, and so on• Increase probability of positive event.• Reduce the occurrence of negative event.
  4. 4. What does it include?• Risk Management Planning• Risk Identification• Qualitative Risk Analysis• Quantitative Risk Analysis• Risk Response Planning• Risk Monitoring and Control
  5. 5. How is it done in project?• Make Risk Management Part of Your Project• Identify Risks Early in Your Project• Communicate About Risks• Consider Both Threats and Opportunities• Clarify Ownership Issues
  6. 6. How is it done in project?• Prioritise Risks• Analyse Risks• Plan and Implement Risk Responses• Register Project Risks• Track Risks and Associated Tasks
  7. 7. Risk in Project Management Plan Risk Qualitative Identify Risk Management Risk Analysis Quantitative Plan Risk Monitor and Risk Analysis Response Control Risk
  8. 8. Plan Risk Management• Analysis and decision making to implement risk management.• Appropriate to size and complexity of the project.• Stakeholders will be involved in planning risk management.
  9. 9. Risk Management Plan• Schedule Risk• Cost Risk• Quality Risk• Scope Risk• Resource Risk• Customer Satisfaction Risk
  10. 10. Identify Risk• Which risk has more probability of affecting the project?• SWOT Analysis• Information gathering• Check-list Analysis• Assumption Analysis
  11. 11. Qualitative Risk Analysis• Assess impact and likelihood of the identified risk.• Probability and Impact Matrix.• Risk categorization.• Risk urgency assessment.
  12. 12. Quantitative Risk Analysis• Data gathering – Direct – Diagrammatic – Delphi• Probability distribution• Modeling Techniques – Decision tree Analysis – Sensitivity Analysis – Expert Judgment
  13. 13. Plan Risk Response• Eliminate threats before they happen.• Decrease impact of threat.• Contingency plan ( Do something if risk happens)• Fallback plan ( Do something if contingency plans are not effective)
  14. 14. Plan Risk Response• Negative risk or threat – Avoid – Transfer – Mitigate – Accept• Positive risk or opportunity – Exploit – Share – Enhance
  15. 15. Monitor and Control Risk• Risk Reassessment (Scheduled regularly to identify new risk)• Risk Audit (Examine the effectiveness of planned risk response)• Trend analysis (Monitor overall project performance)
  16. 16. What are the benefits?• Effective use of resources• Promoting continuous improvement• Fewer shocks and failures• Strategic business planning• Raised awareness of significant risks.
  17. 17. What are the benefits?• Quick grasp of new opportunities• Enhancing communication• Reassuring stakeholders• Focus on internal audit programme• Recognition of responsibility and accountability.
  18. 18. How does Primavera help?• Keep track of issues.• Maintain threshold• Health of project• Track overall project progress to identify any deviation
  19. 19. Itaipu Dam
  20. 20. Thank You

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