Project management chapter 9

1. Project Management
Lecturer:
Haris Jaswal
Program: BA (Hons) in Business Studies (BABS)

2. Lecture: 09
Project Communication & Risk Management
 PMBOK Knowledge Areas
 Risk Management
 Risk Versus Amount at Stake: Challenge in Risk Management
 Four Stages of Risk Management
 Risk Identification
 Risk Factor Identification
 Risk Breakdown Structure (RBS)
 Risk Impact Matrix
 Project Risk Scoring
 Risk Mitigation Strategies
 Control & Documentation
 Project Risk Analysis & Management (PRAM)
 Nine Phases of Risk Assessment
 Project Communications Management
 Breakdown in Communication
 Communication Channels
 Total Communication Process
 Communication Plan

3. PMBOK 10 Knowledge Areas (2013)
 Deliverable objectives of
the project
Scope
Time
Cost
Quality
 Means of achieving the
deliverables objectives
 Integration
 Human Resources
 Communication
 Risk
 Procurement
 Stakeholders

4. QuestionstoConsiderinRiskManagement
 What is likely to happen (the probability and
impact)?
 What canbe done to minimize the probability or
impact of theseevents?
 What cueswill signal the need for suchaction
(i.e., what clues should I actively look for)?
 What are the likely outcomes of these problems
and my anticipatedreaction?

5. Some Definitions of Risk
Organisation Definition of Risk
ISO Guide 73
ISO 31000
Effect of uncertainty on objectives. Note than an
effect may be positive, negative, or a deviation from
the expected. Also, risk is often described by an
event, a change in circumstance or a consequence
Institute of Risk
Management
Risk is the combination of the probability of an event
and its consequence. Consequences can range from
positive to negative.
HM Treasury
Orange Book
Uncertainty of outcome, within a range of exposure,
arising from a combination of the impact and the
probability of potential events
PMBOK 5th Edition Project risk is an uncertain event or condition that, if
occurs, has a positive or negative effect on one or
more project objectives such as scope, schedule, cost
and quality

6. RiskManagement
Projectrisk–an uncertainevent or condition that, if it
occurs,hasapositive or negative effect on oneor more
project objectivessuchasscope,schedule, cost, or
quality.
Risk=(Probability of Event)* (Consequencesof Event)
Riskmanagement – the art and scienceof identifying,
analyzing, and respondingtorisk factors throughout the
life of a project and in the bestinterestof its objectives.

7. RiskVersusAmount atStake: Challengein
RiskManagement
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8. FourStagesofRiskManagement
1. Risk identification
2.Analysisof probabilityand consequences
3. Risk mitigation strategies
4. Control and documentation

9. RiskIdentification
Financial
Technical
Commercial
 Execution
 Contractual orlegal
risk
CommonTypesofRisks
• Absenteeism
• Resignation
• Staff pulledaway
• Time overruns
• Skills unavailable
• Ineffectivetraining
• Specsincomplete
• Change orders

10. RiskFactorIdentification
7-10
Brainstorming meetings
Expert opinion
Past history
Multiple (or teambased) assessments

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RiskBreakdownStructure(RBS)

12. RiskImpactMatrix
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13. ProjectRiskScoring
3. Useproject team’s consensusto determine the scorefor each
Consequence of Failure category: Cost (Cc), Schedule (Cs),
Reliability (Cr), and Performance(Cp).
3
f
1. Useproject team’s consensusto determine the scorefor each
Probability of Failure category: Maturity (Pm), Complexity
(Pc), and Dependency(Pd).
2. Calculate overall probability.
P 
Pm  Pc  Pd
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14. ProjectRiskScoring
4. CalculateCf by adding the four categories and dividing by 4:
5. CalculateOverall Riskfactor for the project by using the
formula:
RuleofThumb:
Low Risk
Medium Risk
High Risk
RF<0.30
RF=0.30 to 0.70
RF>0.70
RF  Pf  Cf  (Pf )(Cf )
C 
Cc  Cs  Cr  Cp
f
4
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15. RiskMitigationStrategies
Accept
Minimize
Share
Transfer
ContingencyReserves
Taskcontingency
Managerial contingency
Insurance
Other Mitigation
Strategies
Mentoring
Crosstraining
Control and
Documentation
Changemanagement
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16. Control& Documentation
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Helps managers classify and codify risks, responses,and
outcomes
Change management report systemanswers:
What?
Who?
When?
Why?
How?

17. ProjectRiskAnalysis&
Management(PRAM)
Key Features of PRAM
 Risk management follows alifecycle.
 Risk management strategy changesoverthe
project lifecycle.
 Synthesized, coherentapproach
PRAMpresents a genericmethodology that can beappliedto
multiple project environments, and encompassesthe key
components of project riskmanagement.
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18. Nine Phasesof Risk
Assessment
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1. Define
2. Focus
3. Identify
4. Structure
5. Clarify ownership ofrisks
6. Estimate
7. Evaluate
8. Plan
9. Manage

19. Project Communications Management
 Reference material: PMBOK, 2013

20. Breakdown in Communication

21. Communications Defined
Effective project communication is needed to
ensure that we get the right information to the
right person at the right time using the right
media and the right format and in a cost-
effective manner.

22.  Project Communications Management is the Knowledge Area that
employs processes required to ensure timely and appropriate
generation, collection, distribution, storage, retrieval and ultimate
disposition of project information.
 These processes provide critical links among people and
information that are necessary for successful communications.
Project Communications
Management

23. UPWARD
COMMUNICATION
TO
MANAGEMENT
TO FRIENDS, SOCIAL GROUP
LATERAL COMMUNICATION
AND BOTH FORMAL AND
INFORMAL ORGANISATIONS
LATERAL COMMUNICATION
TO PEERS,
FUNCTIONAL GROUPS
AND CUSTOMERS
DOWNWARD COMMUNICATION
TO SUBORDINATES & PROJECT
PERSONNEL
Communication Channels
PROJECT
MANAGER

24. SOURCE RECEIVER
ENCODER DECODER
MESSAGE
PERSONALITY
SCREEN SCREEN
PERCEPTION
FEEDBACK
PERSONALITY SCREEN
PERCEPTION SCREEN
REGION OF EXPERIENCE FOR SOURCE
REGION OF EXPERIENCE FOR RECEIVER
Total Communication Process

25. Communication Process

26. Barriers/Noise/Filter
Receiver hearing what he wants to hear. This
results from people doing the same job so
long that they no longer listen.
Sender and receiver having different
perceptions. This is vitally important in
interpreting contractual requirements,
statements of work, and proposal
information requests.
Receiver evaluating the source before
accepting the communications.

27. Barriers/Noise/Filter
Receiver ignoring conflicting information and
doing as he pleases.
Words meaning different things to different
people.
Communicators ignoring nonverbal cues.
Receiver being emotionally upset.
Perhaps as much as 90% or more of the time the
project manager spends in providing project
direction (motivating, counseling, coordinating)
involves some form of communications.

28. Communication Plan
 It is the project manager’s responsibility to develop the project’s
communication plan and lines of communication. The communication plan
may outline the following:
Who (sender and receiver, responsibility and
authority)
What (scope of communication and format)
How (e-mail, document, telephone, meeting,
presentation)
When (schedule)
Feedback (confirm message received and understood
– document control)
Filing (retrieval, storing, disaster recovery)
Source: Burke (2003)

29. Thank You