1_PMI-RMP_Project Risk Management Plan

PPROJECTROJECT RRISKISK MMANAGEMENTANAGEMENT
‫المشروع‬ ‫مخاطر‬ ‫إدارة‬‫المشروع‬ ‫مخاطر‬ ‫إدارة‬
PMI-RMP Hisham Haridy, PMP, PMI-RMP, PMI-SP

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PROJECT RISK MANAGEMENT PMI-RMP

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.

Who are you?

What’s your Expectations?

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

IINTRODUCTIONNTRODUCTION
‫مقدمه‬‫مقدمه‬
PMI-RMP

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

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.

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

Exam Requirements
Experience Education
Bachelors
Degree
3000 hours of Project Risk
Management Experience -
within the last consecutive last
30 Contact Hours
5 years
High School
Graduate
4500 hours of Project Risk
Management Experience -
5 years
40 Contact Hours

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

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

RRISKISK MMANAGEMENTANAGEMENT OOVERVIEWVERVIEW
‫المخاطر‬ ‫إدارة‬ ‫عن‬ ‫عامه‬ ‫نظره‬‫المخاطر‬ ‫إدارة‬ ‫عن‬ ‫عامه‬ ‫نظره‬
PMI-RMP

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

PProjectroject ManagementManagement PProcessrocess GGroupsroups
Controlling
Project Management Process Groups
Initiating ClosingPlanning Executing

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.

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

• 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
CustomerCustomer
SafetySafety

Why do we manage RISK?Why do we manage RISK?

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.

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.

UNCERTAINTYUNCERTAINTY ‫التيقن‬ ‫عدم‬‫التيقن‬ ‫عدم‬

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.

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 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).

“Ignoring risks
does not make
them go
“Ignoring risks
does not make
them gothem go
away.”
them go
away.”

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 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 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 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”

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.

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+)

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

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

“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 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.

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.
PLANNING
Monitoring
and
Controlling

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

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
should be used on
both small andboth small and
large projects.”

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.

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.

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.

PPLANLAN RRISKISK MMANAGEMENTANAGEMENT
‫المخاطر‬ ‫إدارة‬ ‫تخطيط‬‫المخاطر‬ ‫إدارة‬ ‫تخطيط‬
PMI-RMP

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

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.

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.

Project CharterProject Charter ‫المشروع‬ ‫تأسيس‬ ‫وثيقة‬‫المشروع‬ ‫تأسيس‬ ‫وثيقة‬

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.

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

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

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.

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.

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

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

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.

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
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.

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 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.

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.
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.

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.

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
…………………………………… …………………… ……………. ……….. ………..

Example (Risk Responsibility)Example (Risk Responsibility)

Risk Breakdown Structure (RBS)5
Project Risks (L0)
Category (L1)
Sub- Category (L2)
Risk Detail (L3+)

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

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

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

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.

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

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
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

THANK YOUTHANK YOU

1_PMI-RMP_Project Risk Management Plan

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