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1_PMI-RMP_Project Risk Management Plan

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Project Risk Management Professional (PMI-RMP) Certification
This program will rely on The Practice Standard for Project Risk Management.

Published in: Leadership & Management
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1_PMI-RMP_Project Risk Management Plan

  1. 1. PPROJECTROJECT RRISKISK MMANAGEMENTANAGEMENT ‫المشروع‬ ‫مخاطر‬ ‫إدارة‬‫المشروع‬ ‫مخاطر‬ ‫إدارة‬ PMI-RMP Hisham Haridy, PMP, PMI-RMP, PMI-SP
  2. 2. • Please follow the Safety instructions and confidentiality Rules. • Be sure that every one read carefully the guide note of office that contains: A properly executed evacuation saves lives. In case of fire. Safety MinuteSafety Minute Evacuation of offices. Emergency exits within the floor. Evacuation of the parking. In case of an accident. Logical diagram for the security and evacuation process. • If you notice unsafe situations please help us to progress. SafetySafety comescomes firstfirst PROJECT RISK MANAGEMENT PMI-RMP
  3. 3. Who am I? Hisham Haridy Elsayh Project Management Professional Certified (PMP). Risk Management Professional Certified (PMI-RMP). Scheduling Professional Certified (PMI-SP) BS in Civil Engineering. 16 years Project Management Experience. Managing Safely in Construction Certified (IOSH). Primavera Project Management Certified. Freelance Project Management Consultant FP Program Manager: Manage the Fire protection program for Middle East and Africa Plants. Project Manager: Carried out previous long assignments in different countries from concept phase to operation. PROJECT RISK MANAGEMENT PMI-RMP
  4. 4. Who are you? PROJECT RISK MANAGEMENT PMI-RMP
  5. 5. What’s your Expectations? PROJECT RISK MANAGEMENT PMI-RMP
  6. 6. Course Outline Introduction ‫مقدمه‬ Risk Management Overview ‫المخاطر‬ ‫إدارة‬ ‫عن‬ ‫عامه‬ ‫نظره‬ Plan Risk Management ‫المخاطر‬ ‫إدارة‬ ‫تخطيط‬ Identify Risks ‫المخاطر‬ ‫تحديد‬ Perform Qualitative Risk Analysis ‫للمخاطر‬ ‫النوعي‬ ‫التحليل‬ ‫إجراء‬ Perform Quantitative Risk Analysis ‫للمخاطر‬ ‫الكمي‬ ‫التحليل‬ ‫إجراء‬ Plan Risk Responses ‫المخاطر‬ ‫مواجھة‬ ‫خطة‬ Monitor and Control Risks ‫عليھا‬ ‫والسيطرة‬ ‫المخاطر‬ ‫مراقبة‬ PROJECT RISK MANAGEMENT PMI-RMP
  7. 7. IINTRODUCTIONNTRODUCTION ‫مقدمه‬‫مقدمه‬ PMI-RMP
  8. 8. Attendees Who should attend? This course serves in preparing the participants to qualify for the Project Management Institute Risk Management Professional (PMI-RMP) exam. This course is also for any individual, who is engaged in risksThis course is also for any individual, who is engaged in risks management profession with a minimum of one year of experience as a risk management practitioner. Risk managers Project managers Line managers INTRODUCTION PMI-RMP
  9. 9. Objectives Course Objectives Understand what is Risk and the importance of good project risk management. Understand Project Risk Management defined processes. Be ready for Project Risk Management Professional (PMI-RMP) Certification Exam.Exam. Be familiar with the BEST practices for managing project Risks. Apply risk management techniques to determine the true cost and schedule. Demonstrate the impact of successful Risk Management to the organization. Describe Risk Management principles and techniques. Use common Risk Management terminology Be more focused and proactive about preventing problems. INTRODUCTION PMI-RMP
  10. 10. References This program will rely on The Practice Standard for Project Risk Management. A guide to the use of a tool, technique, or process of Project Risk Management. Provide a standard that is globally applicable and consistently applied This practice standard is consistent with the PMBOK® Guide and is aligned with other PMI practice standards INTRODUCTION PMI-RMP
  11. 11. Exam Requirements Experience Education Bachelors Degree 3000 hours of Project Risk Management Experience - within the last consecutive last 30 Contact Hours within the last consecutive last 5 years High School Graduate 4500 hours of Project Risk Management Experience - within the last consecutive last 5 years 40 Contact Hours INTRODUCTION PMI-RMP
  12. 12. Exam Requirements No. of Scored Questions No. of Pretest (Unscored) Questions Total Examination Questions 150 20 170 Comprised of 170 multiple-choice questions. 20 are considered pretest questions. All questions are placed throughout the examination randomly. Allotted Examination Time 3.5 hours INTRODUCTION PMI-RMP
  13. 13. Exam Requirements Risk Strategy and Planning Risk Perform Specialized Risk Analyses Domain % of Que. 1 Risk Strategy and Planning 19-20% 2 Stakeholder Engagement 19-20% 3 Risk Process Facilitation 25-28% 4 Risk Monitoring and Reporting 19-20% 5 Perform Specialized Risk Analyses 14-16% Stakeholder Engagement Risk Process Facilitation Risk Monitoring and Reporting INTRODUCTION PMI-RMP
  14. 14. RRISKISK MMANAGEMENTANAGEMENT OOVERVIEWVERVIEW ‫المخاطر‬ ‫إدارة‬ ‫عن‬ ‫عامه‬ ‫نظره‬‫المخاطر‬ ‫إدارة‬ ‫عن‬ ‫عامه‬ ‫نظره‬ PMI-RMP
  15. 15. PProjectroject ManagementManagement KKnowledgenowledge AArearea Project Scope management ‫المشروع‬ ‫نطاق‬ ‫إدارة‬ Project Time Management ‫المشروع‬ ‫وقت‬ ‫إدارة‬ Project Cost Management ‫المشروع‬ ‫تكلفة‬ ‫إدارة‬ Project Quality Management ‫المشروع‬ ‫جودة‬ ‫إدارة‬ Project Human Reasource Management ‫بالمشروع‬ ‫البشرية‬ ‫الموارد‬ ‫إدارة‬Project Human Reasource Management ‫بالمشروع‬ ‫البشرية‬ ‫الموارد‬ ‫إدارة‬ Project Communication Management ‫المشروع‬ ‫اتصاالت‬ ‫إدارة‬ Project Risk Management ‫المشروع‬ ‫مخاطر‬ ‫إدارة‬ Project Procurement Management ‫بالمشروع‬ ‫المشتريات‬ ‫إدارة‬ Project Integration Management ‫المشروع‬ ‫تكامل‬ ‫إدارة‬ Project Stakeholder Management ‫إدارة‬‫ب‬ ‫المصالح‬ ‫أصحاب‬‫المشروع‬ RISK MANAGEMENT OVERVIEW PMI-RMP
  16. 16. PProjectroject ManagementManagement PProcessrocess GGroupsroups Controlling Project Management Process Groups Initiating ClosingPlanning Executing RISK MANAGEMENT OVERVIEW PMI-RMP
  17. 17. Project characteristic Projects are temporary. A project is a temporary endeavor undertaken to create a unique product or service. A project is a sequence of unique and connected activities having one goal that must be completed by a specific time, within a budget and according to specification. PProjectroject ‫المشروع‬‫المشروع‬ Has definite beginning and end, the end is reached when the project’s objective have been achieved. Projects are unique. Every project creates a unique product, service, or results. Progressively elaborated. Progressively: proceeding in steps. Elaborated: worked with care and detail. RISK MANAGEMENT OVERVIEW PMI-RMP
  18. 18. PProjectroject OObjectivesbjectives ‫المشروع‬ ‫أھداف‬‫المشروع‬ ‫أھداف‬ Something toward which work is to be directed, a strategic position to be attained, or a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed. Each project must have at LEAST one objective. The objectives of the project MUST be made known to all project personnel and all managers, at every level of the organization. If this information is NOT communicated accurately, then it is entirely possible thatIf this information is NOT communicated accurately, then it is entirely possible that upper-level manager, project managers, and functional managers may all have a different interpretation of the ultimate objective , a situation that invites Conflicts. Project objective MUST follow the SMART rule; S = specific M = measurable A = attainable R = realistic or relevant T = time bound RISK MANAGEMENT OVERVIEW PMI-RMP
  19. 19. • Identify all work required to complete project successfully. ScopeScope • Ensure the project is completed on time. TimeTime • Ensure the project is completed within the approved budget. CostCost PProjectroject CConstrainsonstrains ‫المشروع‬ ‫قيود‬‫المشروع‬ ‫قيود‬ • Effectively identify, analyze and respond to the project risks. RiskRisk • Ensure the project will satisfy the customer requirement. QualityQuality • Effective usage of needed resources (manpower, equipment, and materials) ResourcesResources • Adapting and approach to the different concerns and expectations of the various stakeholders. CustomerCustomer SatisfactionSatisfaction CustomerCustomer SatisfactionSatisfaction CustomerCustomer SatisfactionSatisfaction SafetySafety RISK MANAGEMENT OVERVIEW PMI-RMP
  20. 20. Why do we manage RISK?Why do we manage RISK? RISK MANAGEMENT OVERVIEW PMI-RMP
  21. 21. WHAT’S RISKWHAT’S RISK Risk in an uncertain event or condition that, if it occurs, has a positive or negative effect on at least one of the project objectives (scope, schedule, budget, quality) Opportunity ‫فرصة‬ Threat ‫تھديد‬ A project risk that has a positive effect is referred to as an opportunity. A project risk that has a negative effect is referred to as a threat. A project manager will proactivelyan opportunity. A project manager will proactively manage opportunities to the project and look for ways to exploit, enhance, or share the opportunity. A project manager will proactively manage threats to the project and look for ways to reduce the probability or impact of the threat (Mitigate) or eliminate the threat all together (avoid) or transfer to another party. RISK MANAGEMENT OVERVIEW PMI-RMP
  22. 22. UNCERTAINTYUNCERTAINTY ‫التيقن‬ ‫عدم‬‫التيقن‬ ‫عدم‬ Uncertainty is a lack of knowledge about an event that reduces confidence in conclusions drawn from the data. The investigation of uncertainties may help identify RISKs. Under certainty, the outcome can be predicted with a high degree of confidence.confidence. In reality, most decisions are taken without complete information, and therefore give rise to some degree of uncertainty in the outcome. RISK MANAGEMENT OVERVIEW PMI-RMP
  23. 23. UNCERTAINTYUNCERTAINTY ‫التيقن‬ ‫عدم‬‫التيقن‬ ‫عدم‬ RISK MANAGEMENT OVERVIEW PMI-RMP
  24. 24. RISK CLASSIFICATIONRISK CLASSIFICATION ‫المخاطر‬ ‫تصنيف‬‫المخاطر‬ ‫تصنيف‬ Known Risks (Known Unknown) Unknown Risks (Unknown Unknown) Issues That have been identified and analyzed, making it possible to plan responses for those risks. Unknown risks cannot be managed proactively and therefore may be assigned a A negative project risk that has occurred is considered anrisks. That cannot be managed proactively, should be assigned a contingency reserve. assigned a management reserve considered an issue. RISK MANAGEMENT OVERVIEW PMI-RMP
  25. 25. Risks Issues Threats or Opportunities Uncertainty linked to objectives (Loss/gain) Occurred or imminent Required prompt resolution Loss/impact Certain RISK CLASSIFICATIONRISK CLASSIFICATION ‫المخاطر‬ ‫تصنيف‬‫المخاطر‬ ‫تصنيف‬ Pure Risk Business Risk The risk of losses (fire, theft, Injury,..) that is insurable. The risk of gain or loss that is concerned to business threats or opportunities RISK MANAGEMENT OVERVIEW PMI-RMP
  26. 26. RISK FACTORSRISK FACTORS When looking at risk, one should determine: The probability that it will occur (what) The range of possible outcomes (Impact or amount at stake) Expected Timing (when) in the project life cycle The anticipated Frequency of risk events from that source (how often). Risk= f (Probability, Impact). RISK MANAGEMENT OVERVIEW PMI-RMP
  27. 27. “Ignoring risks does not make them go “Ignoring risks does not make them gothem go away.” them go away.” RISK MANAGEMENT OVERVIEW PMI-RMP
  28. 28. RISK ATTITUDRISK ATTITUDEE ‫المخاطر‬ ‫سلوك‬‫المخاطر‬ ‫سلوك‬ Organizations perceive risk as the effect of uncertainty on projects and organizational objectives. Organizations and stakeholders are willing to accept varying degrees of risk depending on their risk attitude. The risk attitudes of both the organization and the stakeholders may be influencedThe risk attitudes of both the organization and the stakeholders may be influenced by a number of factors, which are broadly classified into three themes: 1. Risk appetite 2. Risk tolerance 3. Risk threshold RISK MANAGEMENT OVERVIEW PMI-RMP
  29. 29. RISK APPETITERISK APPETITE ‫المخاطر‬ ‫شھية‬‫المخاطر‬ ‫شھية‬ Risk appetite is about the pursuit of risk. Organizations have to take some risks and they have to avoid others. Risk appetite is delegated downward (from strategic level) to through the organization using various means such as policies, procedures, training, and supervision. Risk appetite is about what the organization does want to do and how it goes about it. The organization’s risk exposure Risks an organization’s to engage RISK MANAGEMENT OVERVIEW PMI-RMP
  30. 30. RISK TOLERANCERISK TOLERANCE ‫للمخاطر‬ ‫به‬ ‫المسموح‬ ‫التفاوت‬‫للمخاطر‬ ‫به‬ ‫المسموح‬ ‫التفاوت‬ Tolerances are the areas of risk that are acceptable or unacceptable OR which is the degree, amount, or volume of risk that an organization or individual will WITHSTAND. Tolerance areas can include any project constraints (such as scope, time, cost, quality, etc.), as well as reputation and other intangibles that may affect the customer. For example, "a risk that affects our reputation will not be tolerated”. Three common classifications used for describing risk tolerance or risk profile are the riskThree common classifications used for describing risk tolerance or risk profile are the risk averse (or avoider), risk neutral (or tolerant), or risk seeker (or taker). The organization’s risk exposure Risk an organization could potentially tolerate RISK MANAGEMENT OVERVIEW PMI-RMP
  31. 31. RISK THRESHOLDRISK THRESHOLD ‫المخاطر‬ ‫عتبة‬‫المخاطر‬ ‫عتبة‬ Refers to measures along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. A threshold is the point at which a risk becomes unacceptable. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will NOT tolerate the risk For example, "If there is a delay, it can be no longer than two weeks.“ OR “A risk score of no moreOR “A risk score of no more than 50 on a scale of 1 to 80” RISK MANAGEMENT OVERVIEW PMI-RMP
  32. 32. Provides a structure that ensures a comprehensive process of systematically identifying risks to a consistent level of detail and contributes to the effectiveness and quality of the Identify Risks process. An organization can use a previously prepared categorization framework which might take the form of a simple list of categories or might be structured into a Risk RISK BREAKDOWN STRUCTURERISK BREAKDOWN STRUCTURE ‫المخاطر‬ ‫تجزئة‬ ‫ھيكل‬‫المخاطر‬ ‫تجزئة‬ ‫ھيكل‬ Breakdown Structure (RBS). The RBS is a hierarchically organized depiction of the identified project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks. RISK MANAGEMENT OVERVIEW PMI-RMP
  33. 33. Project Risks Category RISK BREAKDOWN STRUCTURERISK BREAKDOWN STRUCTURE ‫المخاطر‬ ‫تجزئة‬ ‫ھيكل‬‫المخاطر‬ ‫تجزئة‬ ‫ھيكل‬ Example of Risk Breakdown Structure (RBS) A risk breakdown structure (RBS) helps the project team to look at many sources from which project risk may arise in a risk identification exercise. Sub- Category Risk Detail (L3+) RISK MANAGEMENT OVERVIEW PMI-RMP
  34. 34. The Rewards of RisksThe Rewards of Risks ‫المخاطر‬ ‫من‬ ‫المكافآت‬‫المخاطر‬ ‫من‬ ‫المكافآت‬ Achieving a desired result using limited resources Advancing the state-of-the-art Meeting a required end date or improving a schedule Enhancing profitability Increasing a budget or schedule contingency Saving money Improving the organization market position Ensuring customer satisfaction RISK MANAGEMENT OVERVIEW PMI-RMP
  35. 35. ProjectProject Life Cycle and RiskLife Cycle and Risk ‫الخطر‬ ‫و‬ ‫المشروع‬ ‫حياة‬ ‫دورة‬‫الخطر‬ ‫و‬ ‫المشروع‬ ‫حياة‬ ‫دورة‬ Risk and the associated cost to address the risk, varies over the project life cycle. Initial phase; there is high chance of risk events, but low cost impact Final phase; there is low chance of risk events, but cost impact is high. IdentifyingIdentifying andand managingmanaging risksrisks willwill greatlygreatly affectaffect projectproject successsuccess IdentifyingIdentifying andand managingmanaging risksrisks willwill greatlygreatly affectaffect projectproject successsuccess RISK MANAGEMENT OVERVIEW PMI-RMP
  36. 36. “Project failure can often be attributed to a lack of “Project failure can often be attributed to a lack ofto a lack of adaptation of organizational policies.” to a lack of adaptation of organizational policies.” RISK MANAGEMENT OVERVIEW PMI-RMP
  37. 37. Risk ManagementRisk Management ‫المخاطر‬ ‫إدارة‬‫المخاطر‬ ‫إدارة‬ Risk Management is the process of identifying, analyzing and responding to risk factors throughout the life of a project and in the best interests of its objectives. Proper risk management implies control of possible future events and is proactive rather than reactive.proactive rather than reactive. The objective of the risk management is to: Reduce the impact of negative risks, and Increase the positive impact of risk. RISK MANAGEMENT OVERVIEW PMI-RMP
  38. 38. Project Risk Management ProcessesProject Risk Management Processes Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Monitor and Control Risks The processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project. Determining which risks might affect the project and documenting their characteristics (Risk Register). At least 300 risks should be identified. Numerically analyzing the effect on overall project objectives of identified risks (Risk Register Update), Watchlist. 1.Implementing risk response plans, 2.tracking identified risks, 3.monitoring residual risks, 4.identifying new risks, and 5.evaluating risk process effectiveness throughout the project. Deciding how to approach, plan, and execute the risk management activities for a project (Risk management Plan). Who? When? What? How? How much? P, I, PI matrix, RBS. Risk tolerance. Developing options and actions to enhance opportunities, a nd to reduce threats to project objectives. Prioritizing risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact (Risk Register Update), Ranking, Watchlist. RISK MANAGEMENT OVERVIEW PMI-RMP PLANNING Monitoring and Controlling
  39. 39. Project Risk Management InteractionProject Risk Management Interaction Risk management PlanPlan Risk Management Identify Risk Perform Qualitative Risk Analysis Risk Register Risk Register (Updates) Risk Perform Qualitativ e Risk Analysis Risk Monitor and Control Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Direct and Manage Project Execution Risk Register (Updates) Risk Register (Updates) Risk Register (Updates) List Of Risks for Further Analysis RISK MANAGEMENT OVERVIEW PMI-RMP
  40. 40. Project Risk ManagementProject Risk Management (Critical Success Factors)(Critical Success Factors) Integrate with Project management Open and Honest Communication Organizational Commitment Risk Effort Scaled to Project Risk Management Success Value Risk Management management Project Responsibility RISK MANAGEMENT OVERVIEW PMI-RMP
  41. 41. “Risk management should be used on both small andboth small and large projects.” RISK MANAGEMENT OVERVIEW PMI-RMP
  42. 42. PM Role for Project Risk ManagementPM Role for Project Risk Management 1. Determine acceptable levels of risk for the project in consultation with key stakeholders. 2. Approve the risk management plan. 3. Promoting risk management process for the project. 4. Participate in -the risk management process and identifying and owning risks. 5. Approve risk responses and associated actions prior to implementation. 6. Apply project contingency funds to deal with identified risks that occur during the project. RISK MANAGEMENT OVERVIEW PMI-RMP
  43. 43. PM Role for Project Risk ManagementPM Role for Project Risk Management 7. Oversee risk management by subcontractors and suppliers. 8. Regularly report risk status to key stakeholders, with recommendations for appropriate strategic decisions and actions to maintain acceptable risk exposure. 9. Highlight to senior management any identified risks which are outside the9. Highlight to senior management any identified risks which are outside the scope or control of the project, or which require input or action from outside the project, or where release of “management reserve” funds might be appropriate. 10.Monitor the efficiency and effectiveness of the Project Risk Management process. RISK MANAGEMENT OVERVIEW PMI-RMP
  44. 44. The project manager should maintain effective communication with the stakeholders as the project evolves, in order to become aware ofbecome aware of any changes in the stakeholders’ attitudes towards risk and to adapt the risk management approach accordingly. RISK MANAGEMENT OVERVIEW PMI-RMP
  45. 45. PPLANLAN RRISKISK MMANAGEMENTANAGEMENT ‫المخاطر‬ ‫إدارة‬ ‫تخطيط‬‫المخاطر‬ ‫إدارة‬ ‫تخطيط‬ PMI-RMP
  46. 46. OBJECTIVESOBJECTIVES ‫األھداف‬‫األھداف‬ Create a plan for handling risk management for the project Adapt any policies and procedures for risk to the needs of the project Tailor risk management activities to the needs of the project to make sure the level, type, and visibility of the activities are commensurate ‫متناسب‬ with: The type and size of the project The experience of the project team The perceived level of project risk The importance of the project to the organization PLAN RISK MANAGEMENT PMI-RMP
  47. 47. Plan Risk Management “The process of defining how to conduct risk management activities for a project” ‫المشروع‬ ‫في‬ ‫المخاطر‬ ‫إدارة‬ ‫أنشطة‬ ‫تطبيق‬ ‫خاللھا‬ ‫من‬ ‫يتم‬ ‫التي‬ ‫الطريقة‬ ‫تحديد‬ ‫عملية‬. Inputs Tools and Techniques Outputs 1. Project management plan. 1. Analytical techniques 1. Risk management plan1. Project management plan. 2. Project Charter 3. Stakeholder register 4. Enterprise environmental factors 5. Organizational process assets 1. Analytical techniques 2. Expert judgment 3. Meetings 1. Risk management plan The risk management plan is vital to communicate with and obtain agreement and support from all stakeholders to ensure the risk management process is supported and performed effectively over the project life cycle. PLAN RISK MANAGEMENT PMI-RMP
  48. 48. Project Management PlanProject Management Plan ‫المشروع‬ ‫إدارة‬ ‫خطة‬‫المشروع‬ ‫إدارة‬ ‫خطة‬ This plan includes the baselines for the project (Scope, Schedule, Cost) and also it called performance measurement baselines. The project management plan includes: Baselines for the project (Scope, Schedule, Cost) and also it called performance measurement baselines Subsidiary plans for quality, human resources, communications, risk, procurement, and stakeholders. A requirements management plan. A configuration management plan. Latest version! A change management plan. A process improvement plan. PLAN RISK MANAGEMENT PMI-RMP
  49. 49. Project CharterProject Charter ‫المشروع‬ ‫تأسيس‬ ‫وثيقة‬‫المشروع‬ ‫تأسيس‬ ‫وثيقة‬ PLAN RISK MANAGEMENT PMI-RMP
  50. 50. Stakeholder RegisterStakeholder Register ‫المصلحة‬ ‫أصحاب‬ ‫سجل‬‫المصلحة‬ ‫أصحاب‬ ‫سجل‬ All the information about stakeholders is compiled in the stakeholder register. For example, the stakeholder register may contain; Identification information: Name, organizational position, location, role in the project, contact information; Assessment information: Major requirements, main expectations, potential influence in the project, phase in the life cycle with the most interest; and Stakeholder classification: Internal/external, supporter/neutral/resistor, etc. PLAN RISK MANAGEMENT PMI-RMP
  51. 51. Organizational Process AssetsOrganizational Process Assets ‫التنظيمية‬ ‫العملية‬ ‫أصول‬‫التنظيمية‬ ‫العملية‬ ‫أصول‬ Organizational process assets may be grouped into two categories; 1. Processes and Procedures 2. Corporate Knowledge Base Information, tools, documents, or knowledge your organization possess that can help you plan for your project: Policies and ProceduresPolicies and Procedures Risk categories and Lists Risk terms Risk Templates (Risk Register) Roles and Responsibilities PLAN RISK MANAGEMENT PMI-RMP
  52. 52. It can be anything external to your project that affects your project. The things that impact your project that are not part of the project itself, such as: PMIS (Project Management Information Systems) The characteristics of project's stakeholders (their expectations and willingness to Enterprise Environmental FactorsEnterprise Environmental Factors ‫المشروع‬ ‫في‬ ‫المؤثرة‬ ‫البيئية‬ ‫العوامل‬‫المشروع‬ ‫في‬ ‫المؤثرة‬ ‫البيئية‬ ‫العوامل‬ accept risk) Risk Tolerances Risk Attitudes PLAN RISK MANAGEMENT PMI-RMP
  53. 53. Analytical TechniquesAnalytical Techniques ‫تحليلية‬ ‫تقنيات‬‫تحليلية‬ ‫تقنيات‬ Analytical techniques are used to understand and define the overall risk management context of the project. Risk management context is a combination of stakeholder risk attitudes and the strategic risk exposure of a given project based on the overall project context. A stakeholder risk profile analysis may beA stakeholder risk profile analysis may be performed to grade and qualify the project stakeholder risk appetite and tolerance. the use of strategic risk scoring sheets, are used to provide a high-level assessment of the risk exposure of the project based on the overall project context. PLAN RISK MANAGEMENT PMI-RMP
  54. 54. Expert JudgmentExpert Judgment ‫الخبراء‬ ‫رأي‬‫الخبراء‬ ‫رأي‬ To ensure a comprehensive establishment of the risk management plan, judgment, and expertise should be considered from groups or individuals with specialized training or knowledge on the subject area, such as: Senior management, Project stakeholders, Project managers who have worked on projects in the same area (directly orProject managers who have worked on projects in the same area (directly or through lessons learned), Subject matter experts (SMEs) in business or project area, Industry groups and consultants, and Professional and technical associations. PLAN RISK MANAGEMENT PMI-RMP
  55. 55. Objective: Build an understanding between the stakeholders’ individual attitudes towards the project’s risks and agreement on the techniques to be used for managing uncertainty. Elaboration of risk management plan leverages consultative team approach used in subsequent stages of the risk management process. Meeting (Planning Session)Meeting (Planning Session) ‫التخطيط‬ ‫اجتماعات‬‫التخطيط‬ ‫اجتماعات‬ Attendees: Project manager Selected project team members Members of the broader organization having responsibility for risk Subject matter experts Facilitators Other stakeholders PLAN RISK MANAGEMENT PMI-RMP
  56. 56. Meeting (Planning Session)Meeting (Planning Session) ‫التخطيط‬ ‫اجتماعات‬‫التخطيط‬ ‫اجتماعات‬ Results: Assign and accept (as INPUTS to other risk management processes): Initial risk responsibilities Risk Methodology Risk Templates (Risk Register and Risk Status Report) Risk terminology Risk definitionsRisk definitions Time Cost budgets Tools and techniques These are documented in the formally approved risk management plan PLAN RISK MANAGEMENT PMI-RMP
  57. 57. Risk Management PlanRisk Management Plan ‫المخاطر‬ ‫إدارة‬ ‫خطة‬‫المخاطر‬ ‫إدارة‬ ‫خطة‬ Describes the relationships among Project Risk Management, general project management, and the management processes in the rest of the organization. Must be carried out early in the overall planning of the project. Corresponding risk management activities integrated into the overall project management plan. The risk management plan may subsequently need to be adapted as the needs of the project and its stakeholders become clearer or change. PLAN RISK MANAGEMENT PMI-RMP
  58. 58. 1. Methodology (‫:)المنھجية‬ The way and approach of doing the risk management (approaches, tools, data sources) 2. Roles and responsibilities ( ‫األدوار‬‫والمسئوليات‬ ): Who will do what and when (lead, support and risk management team for each type of activity) 3. Budgeting ( ‫وضع‬‫الميزانية‬ ): (assign resources and estimates costs associated to risks Risk Management PlanRisk Management Plan ‫المخاطر‬ ‫إدارة‬ ‫خطة‬‫المخاطر‬ ‫إدارة‬ ‫خطة‬ for inclusion in project cost baseline) The cost needed to perform the risk activities. The risk management plan should describe how this part of the project budget is evaluated, allocated, and managed. Define monitoring methods to ensure that the corresponding expenditures are tracked appropriately. PLAN RISK MANAGEMENT PMI-RMP
  59. 59. 4. Timing (‫الوقت‬ ‫:)ضبط‬ The Duration of performing the risk activities (defines when and how often the risk management process will be performed and establish risk management activities to be included in project schedule) 5. Risk categories (‫الخطر‬ ‫:)فئات‬ Categorized the source of Risk into Groups (structure that ensure a comprehensive process of systematically identifying risk – e.g. (RBS) Risk Management PlanRisk Management Plan ‫المخاطر‬ ‫إدارة‬ ‫خطة‬‫المخاطر‬ ‫إدارة‬ ‫خطة‬ risk breakdown structure). 6. Definitions of probability and impact ( ‫تعريفات‬‫احتمالية‬‫وتأثير‬‫الخطر‬ ): General definitions of probability levels and impact levels are tailored to the individual project during the Plan Risk Management process for use in subsequent processes. PLAN RISK MANAGEMENT PMI-RMP
  60. 60. 7. Probability and impact matrix ( ‫مصفوفة‬‫االحتمالية‬‫والتأثير‬ ): A probability and impact matrix is a grid for mapping the probability of each risk occurrence and its impact on project objectives if that risk occurs. Risks are prioritized according to their potential implications for having an effect on the project’s objectives. Risk Management PlanRisk Management Plan ‫المخاطر‬ ‫إدارة‬ ‫خطة‬‫المخاطر‬ ‫إدارة‬ ‫خطة‬ A typical approach to prioritizing risks is to use a look-up table or a probability and impact matrix. 8. Revised stakeholder tolerances ( ‫درجات‬‫تحمل‬‫أصحاب‬‫المصلحة‬‫المنقحة‬ ): Determine up to what level a certain stakeholder can accept a risk. PLAN RISK MANAGEMENT PMI-RMP
  61. 61. 9. Reporting formats (‫التقارير‬ ‫صياغة‬ ‫:)أشكال‬ How the project risk information will be reported to the top management and to the stakeholders. 10.Tracking (‫:)التعقب‬ Documents how risk activities will be recorded for the benefit of the current project, as well as for future needs and lessons learned, as well as whether and how risk management processes will be audited. Risk Management PlanRisk Management Plan ‫المخاطر‬ ‫إدارة‬ ‫خطة‬‫المخاطر‬ ‫إدارة‬ ‫خطة‬ PLAN RISK MANAGEMENT PMI-RMP
  62. 62. Example (Risk Management Plan)Example (Risk Management Plan) What How Who How much ($) When Tools Methodology description Identify Risk Brain Storming, Delphi, meeting, Interviews, Expert interview…etc Stakeholder will broken into four group and ….etc Hisham, PM, project team,..etc 4000 1 W Project Duration: 36 M Project Budget: 175 M$1 2 3 4 interview…etc group and ….etc team,..etc Qualitative analysis probability and Impact assessment, Data quality assessment,…et Probability will be defined on 1 to 10 scale as…… Ahmed with the team of …. 6000 2 W Quantitative analysis …………………………………… …………………… ……………. ……….. ………. Plan Risk Response …………………………………… …………………… ……………. ……….. …..….. Monitor and Control Risks …………………………………… …………………… ……………. ……….. ……….. PLAN RISK MANAGEMENT PMI-RMP
  63. 63. Example (Risk Responsibility)Example (Risk Responsibility) PLAN RISK MANAGEMENT PMI-RMP
  64. 64. Example (Risk Management Plan)Example (Risk Management Plan) Risk Breakdown Structure (RBS)5 Project Risks (L0) Category (L1) Sub- Category (L2) Risk Detail (L3+) PLAN RISK MANAGEMENT PMI-RMP
  65. 65. Risk CategoriesRisk Categories ‫الخطر‬ ‫فئات‬‫الخطر‬ ‫فئات‬ Technical, Quality and Performance Project Management Organizational External Higher performance goals Technology shifts Poor time allocation Poor budget planning Poor resource Weak infrastructure Unclear organizational Legal challenges Shifting customer goals Platform changes New industry standards Complex technology Unproven technology Poor resource allocation Poor time planning objectives Intra-organizational resource conflicts Shifting funding availability Natural disasters Legal shifts PLAN RISK MANAGEMENT PMI-RMP
  66. 66. Example (Risk Management Plan)Example (Risk Management Plan) Scale Probability Scale Rang VL < 20 L 20-40 M 40-60 H 60-80 VH >80 Scale Impact (for an objective) Scale Rang VL < 10 L 10-20 M 20-30 H 30-60 VH >60 6 VH >80 VH >60 OBJECTIVE Probability VL L M H VH Impact VH H M L VL Risk Matrix7 PLAN RISK MANAGEMENT PMI-RMP
  67. 67. Risk Management Planning requires time and effort. Key stakeholders (management) do NOT recognize and accept the benefits of managing risk, rather than passive or reactive component of general project management. Lack of clearly defined project objectives. Barriers to Successful Project Risk ManagementBarriers to Successful Project Risk Management NO high-level view of the project environment or solution approach Week planning information PLAN RISK MANAGEMENT PMI-RMP
  68. 68. Abraham Lincoln once said, “If I had six hours to chop down a tree, I would spend four hours sharpening the ax.” Abraham Lincoln once said, “If I had six hours to chop down a tree, I would spend four hours sharpening the ax.”sharpening the ax.”sharpening the ax.” He knew that advance planning and preparation are essential to successfully completing a project. PLAN RISK MANAGEMENT PMI-RMP
  69. 69. Refreshments Q1: During risk planning, you decided to make a contingency plan for delay in a critical task that can cause a chain reaction of task delays. To execute the plan, you decided to use “missing“ some milestones as triggers. Where can you find a list of the project milestones? : A. Scope Baseline B. WBS C. Task Register D. Schedule Plan Q2: During risk planning you decided to use assumption analysis to identify risks. Where should you search for assumptions? A. Cost Baseline B. Scope Statement C. Schedule Baseline D. Project Schedule PLAN RISK MANAGEMENT PMI-RMP
  70. 70. Refreshments Q3: A risk manager was just assigned to a new project. He is very busy collecting information about the scope of the project and how complex it is. He is trying to find out how the project serves the overall company objectives. In addition, he is interviewing senior management and stakeholders to know how they perceive the importance of the project. The risk manager is trying to establish: A. Risk Plan B. Risk Tolerance C. Risk Acceptance Level D. Risk Flexibility Rate PLAN RISK MANAGEMENT PMI-RMP Q4: You are conducting risk planning and would like to know about risk tolerance. Where do you find this information? A. Risk Management Plan B. Risk Register – After Risk Identification C. Enterprise Environmental Factors D. Organizational Process Assets
  71. 71. PLAN RISK MANAGEMENT PMI-RMP
  72. 72. THANK YOUTHANK YOU PLAN RISK MANAGEMENT PMI-RMP

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