PMP Exam Preparation Course: 10 Project Risk Management


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PMP Exam Preparation Course: 10 Project Risk Management

  1. 1. | contact@wizardea.comB. M. Shahrier Majumder, PMPPMP® Exam Preparation
  2. 2. Project Risk Management
  3. 3. | contact@wizardea.comLearning ObjectivesUpon completion of this topic you will learn about– The processes, activities and documentation items for ProjectCommunication Management– Elements (and deliverables) for Project Risk Management– Tools and techniques of the key activities of the Project RiskManagement3
  4. 4. | contact@wizardea.comRisk ManagementIncludes the processes of conducting risk management planning,identification, analysis, response planning, and monitoring and controlof a project.4
  5. 5. | contact@wizardea.comKey Activities of Risk Management Plan Risk Management: The process of defining how to conduct riskmanagement activities for a project. Identify Risks: The process of determining which risk may affect theproject and documenting their characteristics. Perform Qualitative Risk Analysis: The process of prioritizing risks forfurther analysis or action by assessing and combining their probabilityof occurrence and impact. Perform Quantitative Risk Analysis: The process of numericallyanalyzing the effect of identified risks on overall project objectives.5
  6. 6. | contact@wizardea.comKey Activities of Risk Management• Plan Risk Responses: The process of developing options andactions to enhance opportunities and to reduce threats to projectobjectives.• Monitor and Control Risk: The process of implementing risk responseplans, tracking identified risks, monitoring residual risks, identifiednew risks, and evaluating risk process effectiveness throughout theproject.6
  7. 7. | contact@wizardea.comPlanning Risk Management | Data Flow Diagram7
  8. 8. | contact@wizardea.comPlanning Risk ManagementInputs Tools & Techniques OutputsProject scope statementCost management planSchedule managementplanCommunicationmanagement planEnterprise environmentalfactorsOrganizational processassetsProject meetings andanalysisRisk management plan8
  9. 9. | contact@wizardea.comPlan Risk Management > Outputs• Risk Management Plan• Methodology• Roles and responsibilities• Budgeting• Timing• Risk Categories• Definition of Risk Probability and Impact• Probability and Impact Matrix• Reporting Formats• Tracking9
  10. 10. | contact@wizardea.comIdentify Risks | Data Flow Diagram
  11. 11. | contact@wizardea.comIdentify RisksInputs Tools & Techniques OutputsRisk management planActivity cost estimatesActivity duration estimateScope baselineStakeholder registerCost management planSchedule managementplanQuality management planEnterprise environmentalfactorsOrganizational processassetsDocumentation reviewsInformation gatheringtechniquesChecklist analysisAssumption analysisDiagramming techniquesSWOT AnalysisExpert judgmentRisk register
  12. 12. | contact@wizardea.comIdentify Risks > Tools and Techniques• Information gathering techniques• Brainstorming• Delphi technique• Interviewing• Root cause analysis• Diagramming techniques• Cause-effect diagrams• System or process flow charts• Influence diagrams12
  13. 13. | contact@wizardea.comIdentify Risks > Outputs• Risk register13S/NRiskDescriptionCategory ProbabilityP = 1 to 10ImpactI = 1 to 10ExposureE = P X IMitigationPlanContingencyPlan12
  14. 14. | contact@wizardea.comPerform Qualitative Risk Analysis | DFD
  15. 15. | contact@wizardea.comPerform Qualitative Risk AnalysisInputs Tools & Techniques OutputsRisk management planRisk registerProject scope statementOrganizational processassetsRisk probability and impactassessmentProbability and impactmatrixRisk data qualityassessmentRisk categorizationRisk urgency assessmentExpert judgmentRisk register updates
  16. 16. | contact@wizardea.comPerform Qualitative Risk Analysis > Tools andTechniques• Probability and Impact Matrix• Risk Categorization• Source of risk• Project effected• Project phase16
  17. 17. | contact@wizardea.comPerform Quantitative Risk Analysis | DFD
  18. 18. | contact@wizardea.comPerform Quantitative Risk AnalysisInputs Tools & Techniques OutputsRisk management planRisk registerCost management planSchedule managementplanOrganizational processassetsData gathering andrepresentation techniquesQuantitative risk analysisand modeling techniquesExpert judgmentRisk register updates
  19. 19. | contact@wizardea.comPerform Quantitative Risk Analysis > Tools andTechniques• Data gathering and representation technique• Interviewing• Probability distribution• Quantitative risk analysis and modeling techniques• Sensitivity analysis• Expected monetary value analysis• Modeling and simulation19
  20. 20. | contact@wizardea.comPlan Risk Response | Data Flow Diagram
  21. 21. | contact@wizardea.comPlan Risk ResponseInputs Tools & Techniques OutputsRisk management planRisk registerStrategies for negativerisks or threatsStrategies for positive riskor opportunitiesContingent responsestrategiesExpert judgmentRisk register updatesRisk related contractdecisionProject management planupdatesProject document updates
  22. 22. | contact@wizardea.comPlan Risk Response > Tools and Techniques• Strategies for Negative risk or threats• Avoid (e.g. extending schedule, reduce scope)• Transfer (e.g. fixed price contract)• Mitigate (e.g. more testing, choose more stable supplier)• Accept• Strategies for Positive risk or opportunities• Exploit (e.g. assign most talented resources in a project/task)• Share (e.g. joint venture)• Enhance (e.g. adding more resources)• Accept22
  23. 23. | contact@wizardea.comMonitoring & Control Risks | Data Flow Diagram
  24. 24. | contact@wizardea.comMonitoring & Control RisksInputs Tools & Techniques OutputsRisk registerProject management planWork performanceinformationPerformance reportsRisk reassessmentRisk auditVariance and trend analysisTechnical performancemeasurementReserve analysisStatus meetingsRisk register updatesOrganization processassets updatesChange requestsProject management planupdatesProject document updates
  25. 25. | contact@wizardea.comQuestions25• []•