SlideShare a Scribd company logo
Certified Associate Project Management
CAPM® Exam Prep – Week 6
Muzette Charles, PMP | mcharles2@pace.edu
Risk Management
Chapter 11
“… increase the likelihood & impact of positive events & decrease the likelihood & impact of negative events in
the project.”
• “Risk is an uncertain event that if it occurs, has a positive or negative effect on 1 or more of the project
objectives of scope, schedule, cost & quality.”
• Planned Risk Response: Known risks that are identified & analyzed
• Contingency Reserve : Assigned for known risks that cannot be managed proactively
• Management Reserve : Assigned for unknown risks that cannot be managed proactively
• Positive risks = Opportunities
• Negative risks = Threats  90% of Threats can be eliminated => if occur are known as Issues
• Levels of Risks: Appetite, Tolerance, Threshold, Averse
Process Process Group Key Deliverables
11.1 Plan Risk Management Planning Risk Management Plan
11.2 Identify Risks Planning Risk Register
11.3 Perform Qualitative Risk Analysis Planning Project Documents updates
11.4 Perform Quantitative Risk Analysis Planning Project Documents updates
11.5 Plan Risk Responses Planning Project Management Plan updates
11.6 Implement Risks Responses Executing Change requests
11.7 Monitor Risks Monitoring & Controlling Change requests
Risk Management
Chapter 11
Plan Risk Management
Process 1 Key Points
 “… process is vital to communicate with & obtain agreement & support from all stakeholders to ensure
risk mgmt process is supported & performed over the project life cycle.”
 Risk Mgmt Plan: Methodology, Roles & responsibilities, Budget, Timing, Risk Categories, Definitions of
probability & impact (low to high/numerical), Stakeholder tolerances, Reporting & Tracking
 Risk Categories aka Sources of Risks: external, internal (constraints), technical, unforeseeable (10%)
Risk Management
Chapter 11Identify Risk
Process 2 Key Points
 “… process of documenting existing risks & the knowledge & ability it provides the project team to
anticipate events.”
 “… is an iterative process, because new risks may evolve or become known as the project progresses.”
 Tools: Info Gathering (see Scope tools), Diagramming (see Quality tools), SWOT
 Risk Register: lists of risks, potential responses, root causes & updates
Risk Management
Chapter 11
Perform Qualitative Risk Analysis
Process 3 Key Points
 “… process of prioritizing risks by assessing their probability of occurrence & impact… to reduce the
level of uncertainty & to focus on high-priority risks.”
 Short-Listed Risks: those risks that have a high impact on project & warrant a response
 Risk Urgency: those high impact risks that may occur soon and/or take a long time to plan a response
 Risk Probability & Impact / Matrix: is Subjective, varies on the risk bias of the person doing the rating!!
 Watch List: non-critical risks that are documented on the Risk Register & reviewed in Control Risks
Risk Management
Chapter 11
Perform Quantitative Risk Analysis
Process 4
Key Points
 “… process of assigning a numerical priority rating to those risks prioritized in Qualitative Risk Analysis.”
 Risk Assessment is Objective: each risk based on actual probability of occurring & the impact (amount at stake)
 Risk Analysis Tools: Sensitivity/Tornado Diagram, Expected Money Value (EMV=PxI), Monte Carlo/Probability
Risk Management
Chapter 11
Qualitative Risk Analysis - Risk Probability & Impact Matrix
IMPACT
Quantitative Risk Analysis – Expected Money Value (EMV)
RISKS PROBABILITY IMPACT
High Winds 30% Cost $500 to replace equipment
Landslide 5% Lose $80,000 in damage costs
Wind generator is usable 20% Save $8,000 in battery costs
Truck rental unavailable 10% Cost $300 for last-minute rental
Wild animals eat rations 10% Costs $100 for replacements
Unseasonably warm weather 15% Saves $50,000 in excavation costs
RISKS PROBABILITY IMPACT
Landslide .1 .9
Winds .7 .9
No Truck .3 .7
Storms .5 .3
Supplies .1 .5
Illness .1 .1
Probability & Impact Matrix
.9 .09 .27 .45 .63 .69
.7 .07 .21 .35 .49 .63
.5 .05 .15 .25 .35 .45
.3 .03 .09 .15 .21 .27
.1 .01 .03 .05 .07 .09
.1 .3 .5 .7 .9
Risk Management
Chapter 11Plan Risk Responses
Process 5 Key Points
 “… process enhances opportunities & reduce threats by inserting resources & activities into the budget, schedule
& project management plan as needed.”
 Tools:
 Strategies for Negative Risks/Threats: Avoid or Mitigate (used for high priority/impact), Transfer, Accept (workarounds)
 Strategies for Positive Risks/Opportunities: Exploit (take advantage), Enhance (influence triggers), Share, Accept
 Outputs:
 PMP Updates and Risk Register Updates: Residual Risks, Contingency Plans, Fallback Plans, Risk Owners, Secondary
Risks, Risk triggers, Contracts, Reserves (contingency)
 * Management Reserves: generally are 5% of the project budget to cover Unknown Risks
Risk Management
Chapter 11
Implement Risk Responses
Process 6
Key Points
 “…implement agreed upon risk responses as planned to minimize project threats and maximize project
opportunities.”
Risk Management
Chapter 11
Monitor Risks
Process 7
Key Points
 “… process of implementing risk response plans, tracking identified risks, monitoring residual risks &
identifying new risks throughout the project life cycle to continuously optimize risk response.”
 Tools: Risk Audits (documented effectiveness of risk responses), Meetings (agenda item at status mtgs)
Risk Management
Chapter 11
Procurement Management
Chapter 12
• “… is the process necessary to purchase or acquire products, services or results needed from outside the project
team… includes controlling any contract issued outside of the organization.”
• “Involves legal documents, agreements and/or contracts that are mutually binding between the buyer & seller “
• “Contract obligates the Seller to provide something of value & obligates the Buyer to provide monetary or other
value compensation.”
• “The Buyer becomes the customer & thus a key stakeholder for the Seller.”
• “The Seller’s PM Team is concerned with all the processes of PM, not only those of this Knowledge Area.”
Process Process Group Key Deliverables
12.1 Plan Procurements Planning Procurement Management Plan
12.2 Conduct Procurements Execution Selected Sellers
12.3 Control Procurements Monitoring & Controlling Change Requests
Procurement Management
Chapter 12Plan Procurements
Process 1 Key Points
 “… process documents procurement decisions, whether to acquire outside support, what to acquire,
how to acquire, how much is needed, when to acquire and identifies potential Sellers.”
 Cost: refers to how much it costs the Seller to create, develop,
 Price: is the amount the Seller charges the Buyer
 Profit: is the amount of money the Seller has left over after costs are paid
 Contract Terms: Arbitration, Breach, Force Majeure, Indemnification (liability), etc… see page 350
Procurement Management
Chapter 12Plan Procurements
Process 1 Key Points
Types of Contracts
 Purchase Order: simplest type of FP, signed by 1 party, PO becomes the contract when “accepted” by the Buyer
 Fixed Price (FP): defined SOW, Buyer gets a fair/reasonable price, Seller high level of risk “Pt of Assumption”
 Cost-Reimbursable (CR): scope is uncertain, cost not accurately estimated, Buyer has high risk
 Time & Material (T&M): hybrid of both FP & CR, Unit Price is known, but not # of Hrs, Seller’s profit is built into rate,
Buyer has medium risk, but can use clause “Not to Exceed”
Tools
 Make or Buy Analysis: does it decrease the project’s constraints, retain control, proprietary info?
 Procurement / Bid Docs: Request for Proposal (RFP), Invitation to Bid (IFB), Request for Quote (RFQ)
 Source Selection Criteria: can the Seller actually do the work, cover the costs, are subcontractors involved?
Procurement Management
Chapter 12Conduct Procurements
Process 2
Key Points
 “… process of obtaining seller responses, selecting a seller & awarding a contract.”
 Qualified Seller List: prequalified list of sellers from OPA speeds up the process
 Seller Proposals: sent to Buyer in response to RFP, IFB, RFQ
 Tools: Bidder conference, Advertisements, Negotiations, etc
 Outputs: Selected Sellers vs. Sole Source
Procurement Management
Chapter 12
Control Procurements
Process 3 Key Points
 “… process manages procurement relationships, monitors contract performance & makes changes &
corrections to contracts as appropriate to ensure both the Seller & the Buyer’s performance meets the
procurement requirements according to the terms of the legal agreement.”
 Tools: Inspections & Audits, Payment Systems (accts rcvble/payable), Claims Admin aka Seller change
requests (settled thru negotiations)
Procurement Management
Chapter 12
Process 3 Key Points
 “… process involves administration activities to finalize open claims, update records to reflect final
results & archiving information for future use.”
 Ensures contractual agreements are completed or terminated
 Early Termination: can be mutually agreed upon, default of 1 party or convenience to the Buyer
 Termination Clause: Buyer may have to compensate Seller for any completed & accepted work
 Unresolved Claims: may be subject to litigation after closure
Procurement Management
Chapter 12
Stakeholder Management
Chapter 13
“… is the process required to identify the people, groups or organizations, that could impact or be
impacted by the project, to analyze stakeholder expectations, effectively engage in project decisions,
focus on continuous communication to understand their needs & expectations, addressing issues as
they occur & managing conflicting interests.”
“Stakeholder satisfaction should be managed as a key project objective.”
Process Process Group Key Deliverables
13.1 Identify Stakeholders Initiation Stakeholder Register
13.2 Plan Stakeholder Engagement Planning Stakeholder Management Plan
13.3 Manage Stakeholder Engagement Execution Issue Log
13.4 Monitor Stakeholder Engagement Monitoring & Controlling Change Requests
Stakeholder Management
Chapter 13Identify Stakeholders
Process 1 Key Points
 “… process is critical to PM’s success to identify the appropriate focus for each stakeholder early in project.”
 Expert Judgment: Senior Mgmt, other units used to identify stakeholders power/interest
Stakeholder Management
Chapter 13
Plan Stakeholder Management
Process 2 Key Points
 “… process develops the appropriate strategies to effectively engage stakeholders throughout the
project life cycle based on the analysis of their needs, interests & potential impact on project’s success.”
 Stakeholder Engagement Matrix:
 used to classify Current (C) engagement & who needs to be moved to Desired (D) engagement
Stakeholder Management
Chapter 13
Manage Stakeholder Engagement
Process 3 Key Points
 “… process of communicating & working with stakeholders to meet their needs/requirements.”
 “Allows the PM to increase support & minimize resistance from stakeholders to significantly increase
the chances of achieving project success.”
 Communicate… Communicate… Communicate!!:
 Use Interpersonal skills, build trust, resolve conflicts, active listening
 Issues Log: documents issues & tracks their resolutions
Stakeholder Management
Chapter 13
Monitor Stakeholder Engagement
Process 4
Key Points
 “… process monitoring overall project stakeholder relationships & adjusting strategies & plans for
engaging stakeholders.
Stakeholders Management
Chapter 13
Summary
Identify each of the 49 Project Processes by their Knowledge Areas
CAPM Exam Prep
Group Exercise & Quiz 6
• Review of all 5 Process Groups
• Review of all 10 Knowledge Areas
• Identify each of the 49 Processes by their Process Group & key ITTOs
• Identify Network Diagrams, Critical Paths, Organizations, Earned Value &
Forecasting Techniques

More Related Content

What's hot

Risk Management Framework
Risk Management FrameworkRisk Management Framework
Risk Management Framework
Anand Subramaniam
 
Decision and risk analysis
Decision and risk analysisDecision and risk analysis
Decision and risk analysis
Indra Biswakarma
 
Probabilistic Cost, Schedule, and Risk management
Probabilistic Cost, Schedule, and Risk managementProbabilistic Cost, Schedule, and Risk management
Probabilistic Cost, Schedule, and Risk management
Glen Alleman
 
The Art and Science Behind Successful Risk Workshops
The Art and Science Behind Successful Risk WorkshopsThe Art and Science Behind Successful Risk Workshops
The Art and Science Behind Successful Risk Workshops
Acumen
 
Project Risk Management
Project Risk ManagementProject Risk Management
Project Risk Management
Oleksa Stelmakh
 
Project mngmnt risks3.2
Project mngmnt risks3.2Project mngmnt risks3.2
Project mngmnt risks3.2
Ananya Indrajith
 
Risk analysis
Risk analysisRisk analysis
Risk analysis
saurabhshertukde
 
Risk ppt1672
Risk ppt1672Risk ppt1672
Risk ppt1672
Dr. Ravneet Kaur
 
Project Management Risks Review
Project Management Risks ReviewProject Management Risks Review
Project Management Risks Review
David Tennant
 
Quantification of Risks in Project Management
Quantification of Risks in Project ManagementQuantification of Risks in Project Management
Quantification of Risks in Project Management
Venkatesh Ganapathy
 
Project Management 05
Project Management 05Project Management 05
Project Management 05
Tathagat Varma
 
Project risk management notes bagamoyo 12.10.2017 final v1
Project risk management  notes bagamoyo 12.10.2017 final v1Project risk management  notes bagamoyo 12.10.2017 final v1
Project risk management notes bagamoyo 12.10.2017 final v1
EMAC Consulting Group
 
Risk Management
Risk ManagementRisk Management
Risk Management
Glen Alleman
 
Project Risk Management
Project Risk ManagementProject Risk Management
Project Risk Management
Russell Taylor BEng CEng FAPM FIET
 
Step by step guide on project risk management
Step by step guide on project risk managementStep by step guide on project risk management
Step by step guide on project risk management
PMC Mentor
 
Agile project management and normative
Agile project management and normativeAgile project management and normative
Agile project management and normative
Glen Alleman
 
Project risk management focus on risk identification techniques
Project risk management   focus on risk identification techniquesProject risk management   focus on risk identification techniques
Project risk management focus on risk identification techniques
Marco De Santis, PMP, CFPP
 
Project risk management
Project risk managementProject risk management
Project risk management
Yogender Singh Rana
 
Increasing the Probability of Project Success
Increasing the Probability of Project SuccessIncreasing the Probability of Project Success
Increasing the Probability of Project Success
Glen Alleman
 
Risk and Uncertainty
Risk and UncertaintyRisk and Uncertainty
Risk and Uncertainty
Brad Stollery
 

What's hot (20)

Risk Management Framework
Risk Management FrameworkRisk Management Framework
Risk Management Framework
 
Decision and risk analysis
Decision and risk analysisDecision and risk analysis
Decision and risk analysis
 
Probabilistic Cost, Schedule, and Risk management
Probabilistic Cost, Schedule, and Risk managementProbabilistic Cost, Schedule, and Risk management
Probabilistic Cost, Schedule, and Risk management
 
The Art and Science Behind Successful Risk Workshops
The Art and Science Behind Successful Risk WorkshopsThe Art and Science Behind Successful Risk Workshops
The Art and Science Behind Successful Risk Workshops
 
Project Risk Management
Project Risk ManagementProject Risk Management
Project Risk Management
 
Project mngmnt risks3.2
Project mngmnt risks3.2Project mngmnt risks3.2
Project mngmnt risks3.2
 
Risk analysis
Risk analysisRisk analysis
Risk analysis
 
Risk ppt1672
Risk ppt1672Risk ppt1672
Risk ppt1672
 
Project Management Risks Review
Project Management Risks ReviewProject Management Risks Review
Project Management Risks Review
 
Quantification of Risks in Project Management
Quantification of Risks in Project ManagementQuantification of Risks in Project Management
Quantification of Risks in Project Management
 
Project Management 05
Project Management 05Project Management 05
Project Management 05
 
Project risk management notes bagamoyo 12.10.2017 final v1
Project risk management  notes bagamoyo 12.10.2017 final v1Project risk management  notes bagamoyo 12.10.2017 final v1
Project risk management notes bagamoyo 12.10.2017 final v1
 
Risk Management
Risk ManagementRisk Management
Risk Management
 
Project Risk Management
Project Risk ManagementProject Risk Management
Project Risk Management
 
Step by step guide on project risk management
Step by step guide on project risk managementStep by step guide on project risk management
Step by step guide on project risk management
 
Agile project management and normative
Agile project management and normativeAgile project management and normative
Agile project management and normative
 
Project risk management focus on risk identification techniques
Project risk management   focus on risk identification techniquesProject risk management   focus on risk identification techniques
Project risk management focus on risk identification techniques
 
Project risk management
Project risk managementProject risk management
Project risk management
 
Increasing the Probability of Project Success
Increasing the Probability of Project SuccessIncreasing the Probability of Project Success
Increasing the Probability of Project Success
 
Risk and Uncertainty
Risk and UncertaintyRisk and Uncertainty
Risk and Uncertainty
 

Similar to CAPM Muzette Charles Chapter11-13

CAPM Week 4 Chapter 11
CAPM Week 4 Chapter 11CAPM Week 4 Chapter 11
CAPM Week 4 Chapter 11
Muzette Charles, PMP
 
PMP Muzette Charles_Sp2019_Week5_Chapter11_Risk
PMP Muzette Charles_Sp2019_Week5_Chapter11_RiskPMP Muzette Charles_Sp2019_Week5_Chapter11_Risk
PMP Muzette Charles_Sp2019_Week5_Chapter11_Risk
Muzette Charles, PMP
 
PMP Training - 11 project risk management
PMP Training - 11 project risk managementPMP Training - 11 project risk management
PMP Training - 11 project risk management
ejlp12
 
Slide 3_Arpita
Slide 3_ArpitaSlide 3_Arpita
Slide 3_Arpita
Arpita Ghosh
 
Basic risk management presentation 17th june 2015
Basic risk management presentation 17th june 2015Basic risk management presentation 17th june 2015
Basic risk management presentation 17th june 2015
Association for Project Management
 
NCV 4 Project Management Hands-On Support Slide Show - Module5
NCV 4 Project Management Hands-On Support Slide Show - Module5NCV 4 Project Management Hands-On Support Slide Show - Module5
NCV 4 Project Management Hands-On Support Slide Show - Module5
Future Managers
 
Risk Analysis
Risk AnalysisRisk Analysis
Risk Analysis
CIToolkit
 
Risk Management
Risk Management Risk Management
Risk Management
Andriy Mudryy
 
Андрій Мудрий “Risk managemnt: Welcome to Risk World” Lviv Project Managemen...
 Андрій Мудрий “Risk managemnt: Welcome to Risk World” Lviv Project Managemen... Андрій Мудрий “Risk managemnt: Welcome to Risk World” Lviv Project Managemen...
Андрій Мудрий “Risk managemnt: Welcome to Risk World” Lviv Project Managemen...
Lviv Startup Club
 
Андрій Мудрий «Risk managemnt: Welcome to Risk World»
Андрій Мудрий «Risk managemnt: Welcome to Risk World»Андрій Мудрий «Risk managemnt: Welcome to Risk World»
Андрій Мудрий «Risk managemnt: Welcome to Risk World»
Lviv Startup Club
 
Project Risk Management
Project Risk ManagementProject Risk Management
Project Risk Management
Nimat Khattak
 
Presentation on Project Risk Management
Presentation on Project Risk ManagementPresentation on Project Risk Management
Presentation on Project Risk Management
Md. Masudur Rahman, PMP
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
RajeevRanjan338430
 
project risk management project risk management
project risk management project risk managementproject risk management project risk management
project risk management project risk management
Henrykuswantoro2
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
HinaAsghar16
 
project managment.ppt
project managment.pptproject managment.ppt
project managment.ppt
HinaAsghar16
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
HemaLatha208756
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
HinaAsghar16
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
AyidAlmgati
 

Similar to CAPM Muzette Charles Chapter11-13 (20)

CAPM Week 4 Chapter 11
CAPM Week 4 Chapter 11CAPM Week 4 Chapter 11
CAPM Week 4 Chapter 11
 
PMP Muzette Charles_Sp2019_Week5_Chapter11_Risk
PMP Muzette Charles_Sp2019_Week5_Chapter11_RiskPMP Muzette Charles_Sp2019_Week5_Chapter11_Risk
PMP Muzette Charles_Sp2019_Week5_Chapter11_Risk
 
PMP Training - 11 project risk management
PMP Training - 11 project risk managementPMP Training - 11 project risk management
PMP Training - 11 project risk management
 
Slide 3_Arpita
Slide 3_ArpitaSlide 3_Arpita
Slide 3_Arpita
 
Basic risk management presentation 17th june 2015
Basic risk management presentation 17th june 2015Basic risk management presentation 17th june 2015
Basic risk management presentation 17th june 2015
 
NCV 4 Project Management Hands-On Support Slide Show - Module5
NCV 4 Project Management Hands-On Support Slide Show - Module5NCV 4 Project Management Hands-On Support Slide Show - Module5
NCV 4 Project Management Hands-On Support Slide Show - Module5
 
Risk Analysis
Risk AnalysisRisk Analysis
Risk Analysis
 
Risk Management
Risk Management Risk Management
Risk Management
 
Андрій Мудрий “Risk managemnt: Welcome to Risk World” Lviv Project Managemen...
 Андрій Мудрий “Risk managemnt: Welcome to Risk World” Lviv Project Managemen... Андрій Мудрий “Risk managemnt: Welcome to Risk World” Lviv Project Managemen...
Андрій Мудрий “Risk managemnt: Welcome to Risk World” Lviv Project Managemen...
 
Андрій Мудрий «Risk managemnt: Welcome to Risk World»
Андрій Мудрий «Risk managemnt: Welcome to Risk World»Андрій Мудрий «Risk managemnt: Welcome to Risk World»
Андрій Мудрий «Risk managemnt: Welcome to Risk World»
 
Project Risk Management
Project Risk ManagementProject Risk Management
Project Risk Management
 
Presentation on Project Risk Management
Presentation on Project Risk ManagementPresentation on Project Risk Management
Presentation on Project Risk Management
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
 
project risk management project risk management
project risk management project risk managementproject risk management project risk management
project risk management project risk management
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
 
project managment.ppt
project managment.pptproject managment.ppt
project managment.ppt
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
 
9. Risk.ppt
9. Risk.ppt9. Risk.ppt
9. Risk.ppt
 

More from Muzette Charles, PMP

PMP Muzette Charles_Sp19_Week6_Ethics Review
PMP Muzette Charles_Sp19_Week6_Ethics ReviewPMP Muzette Charles_Sp19_Week6_Ethics Review
PMP Muzette Charles_Sp19_Week6_Ethics Review
Muzette Charles, PMP
 
PMP Muzette Charles_Sp2019_Chapter12_13 Procurement_Stakeholder
PMP Muzette Charles_Sp2019_Chapter12_13 Procurement_StakeholderPMP Muzette Charles_Sp2019_Chapter12_13 Procurement_Stakeholder
PMP Muzette Charles_Sp2019_Chapter12_13 Procurement_Stakeholder
Muzette Charles, PMP
 
PMP Muzette Charles_Spring2019_Week4_Chapter9_10
PMP Muzette Charles_Spring2019_Week4_Chapter9_10PMP Muzette Charles_Spring2019_Week4_Chapter9_10
PMP Muzette Charles_Spring2019_Week4_Chapter9_10
Muzette Charles, PMP
 
PMP Muzette Charles_Spring2019_Week4_Chapter8
PMP Muzette Charles_Spring2019_Week4_Chapter8PMP Muzette Charles_Spring2019_Week4_Chapter8
PMP Muzette Charles_Spring2019_Week4_Chapter8
Muzette Charles, PMP
 
PMP M Charles_Spring2019_Week3_Chapter7
PMP M Charles_Spring2019_Week3_Chapter7PMP M Charles_Spring2019_Week3_Chapter7
PMP M Charles_Spring2019_Week3_Chapter7
Muzette Charles, PMP
 
PMP Muzette Charles_Spring2019_Week3_Chapter6
PMP Muzette Charles_Spring2019_Week3_Chapter6PMP Muzette Charles_Spring2019_Week3_Chapter6
PMP Muzette Charles_Spring2019_Week3_Chapter6
Muzette Charles, PMP
 
PMP Muzette Charles_Sp2019_Week2_Chapter4_5
PMP Muzette Charles_Sp2019_Week2_Chapter4_5PMP Muzette Charles_Sp2019_Week2_Chapter4_5
PMP Muzette Charles_Sp2019_Week2_Chapter4_5
Muzette Charles, PMP
 
PMP Muzette Charles_Sp2019_Week1_chapter1_2_3
PMP Muzette Charles_Sp2019_Week1_chapter1_2_3PMP Muzette Charles_Sp2019_Week1_chapter1_2_3
PMP Muzette Charles_Sp2019_Week1_chapter1_2_3
Muzette Charles, PMP
 
CAPM Muzette Charles Ethics_Review
CAPM Muzette Charles Ethics_ReviewCAPM Muzette Charles Ethics_Review
CAPM Muzette Charles Ethics_Review
Muzette Charles, PMP
 
CAPM Muzette Charles Week5 Chapter9-10
CAPM Muzette Charles Week5 Chapter9-10CAPM Muzette Charles Week5 Chapter9-10
CAPM Muzette Charles Week5 Chapter9-10
Muzette Charles, PMP
 
CAPM Muzette Charles_Week4_Chapter7-8
CAPM Muzette Charles_Week4_Chapter7-8CAPM Muzette Charles_Week4_Chapter7-8
CAPM Muzette Charles_Week4_Chapter7-8
Muzette Charles, PMP
 
CAPM Muzette Charles Chapter3-4
CAPM Muzette Charles Chapter3-4CAPM Muzette Charles Chapter3-4
CAPM Muzette Charles Chapter3-4
Muzette Charles, PMP
 
CAPM M Charles Week3 Chapter5-6
CAPM M Charles Week3 Chapter5-6CAPM M Charles Week3 Chapter5-6
CAPM M Charles Week3 Chapter5-6
Muzette Charles, PMP
 
CAPM Muzette Charles_Week1_Chapter1-2
CAPM Muzette Charles_Week1_Chapter1-2CAPM Muzette Charles_Week1_Chapter1-2
CAPM Muzette Charles_Week1_Chapter1-2
Muzette Charles, PMP
 
CAPM Week 6 Final Review
CAPM Week 6 Final ReviewCAPM Week 6 Final Review
CAPM Week 6 Final Review
Muzette Charles, PMP
 
CAPM Week 5 Chapter 13
CAPM Week 5 Chapter 13CAPM Week 5 Chapter 13
CAPM Week 5 Chapter 13
Muzette Charles, PMP
 
CAPM Week 5 Chapter 12
CAPM Week 5 Chapter 12CAPM Week 5 Chapter 12
CAPM Week 5 Chapter 12
Muzette Charles, PMP
 
CAPM Week 4 Chapter 10
CAPM Week 4 Chapter 10CAPM Week 4 Chapter 10
CAPM Week 4 Chapter 10
Muzette Charles, PMP
 
CAPM Week 3 Chapter 9
CAPM Week 3 Chapter 9CAPM Week 3 Chapter 9
CAPM Week 3 Chapter 9
Muzette Charles, PMP
 
CAPM Week 3 Chapter 8
CAPM Week 3 Chapter 8CAPM Week 3 Chapter 8
CAPM Week 3 Chapter 8
Muzette Charles, PMP
 

More from Muzette Charles, PMP (20)

PMP Muzette Charles_Sp19_Week6_Ethics Review
PMP Muzette Charles_Sp19_Week6_Ethics ReviewPMP Muzette Charles_Sp19_Week6_Ethics Review
PMP Muzette Charles_Sp19_Week6_Ethics Review
 
PMP Muzette Charles_Sp2019_Chapter12_13 Procurement_Stakeholder
PMP Muzette Charles_Sp2019_Chapter12_13 Procurement_StakeholderPMP Muzette Charles_Sp2019_Chapter12_13 Procurement_Stakeholder
PMP Muzette Charles_Sp2019_Chapter12_13 Procurement_Stakeholder
 
PMP Muzette Charles_Spring2019_Week4_Chapter9_10
PMP Muzette Charles_Spring2019_Week4_Chapter9_10PMP Muzette Charles_Spring2019_Week4_Chapter9_10
PMP Muzette Charles_Spring2019_Week4_Chapter9_10
 
PMP Muzette Charles_Spring2019_Week4_Chapter8
PMP Muzette Charles_Spring2019_Week4_Chapter8PMP Muzette Charles_Spring2019_Week4_Chapter8
PMP Muzette Charles_Spring2019_Week4_Chapter8
 
PMP M Charles_Spring2019_Week3_Chapter7
PMP M Charles_Spring2019_Week3_Chapter7PMP M Charles_Spring2019_Week3_Chapter7
PMP M Charles_Spring2019_Week3_Chapter7
 
PMP Muzette Charles_Spring2019_Week3_Chapter6
PMP Muzette Charles_Spring2019_Week3_Chapter6PMP Muzette Charles_Spring2019_Week3_Chapter6
PMP Muzette Charles_Spring2019_Week3_Chapter6
 
PMP Muzette Charles_Sp2019_Week2_Chapter4_5
PMP Muzette Charles_Sp2019_Week2_Chapter4_5PMP Muzette Charles_Sp2019_Week2_Chapter4_5
PMP Muzette Charles_Sp2019_Week2_Chapter4_5
 
PMP Muzette Charles_Sp2019_Week1_chapter1_2_3
PMP Muzette Charles_Sp2019_Week1_chapter1_2_3PMP Muzette Charles_Sp2019_Week1_chapter1_2_3
PMP Muzette Charles_Sp2019_Week1_chapter1_2_3
 
CAPM Muzette Charles Ethics_Review
CAPM Muzette Charles Ethics_ReviewCAPM Muzette Charles Ethics_Review
CAPM Muzette Charles Ethics_Review
 
CAPM Muzette Charles Week5 Chapter9-10
CAPM Muzette Charles Week5 Chapter9-10CAPM Muzette Charles Week5 Chapter9-10
CAPM Muzette Charles Week5 Chapter9-10
 
CAPM Muzette Charles_Week4_Chapter7-8
CAPM Muzette Charles_Week4_Chapter7-8CAPM Muzette Charles_Week4_Chapter7-8
CAPM Muzette Charles_Week4_Chapter7-8
 
CAPM Muzette Charles Chapter3-4
CAPM Muzette Charles Chapter3-4CAPM Muzette Charles Chapter3-4
CAPM Muzette Charles Chapter3-4
 
CAPM M Charles Week3 Chapter5-6
CAPM M Charles Week3 Chapter5-6CAPM M Charles Week3 Chapter5-6
CAPM M Charles Week3 Chapter5-6
 
CAPM Muzette Charles_Week1_Chapter1-2
CAPM Muzette Charles_Week1_Chapter1-2CAPM Muzette Charles_Week1_Chapter1-2
CAPM Muzette Charles_Week1_Chapter1-2
 
CAPM Week 6 Final Review
CAPM Week 6 Final ReviewCAPM Week 6 Final Review
CAPM Week 6 Final Review
 
CAPM Week 5 Chapter 13
CAPM Week 5 Chapter 13CAPM Week 5 Chapter 13
CAPM Week 5 Chapter 13
 
CAPM Week 5 Chapter 12
CAPM Week 5 Chapter 12CAPM Week 5 Chapter 12
CAPM Week 5 Chapter 12
 
CAPM Week 4 Chapter 10
CAPM Week 4 Chapter 10CAPM Week 4 Chapter 10
CAPM Week 4 Chapter 10
 
CAPM Week 3 Chapter 9
CAPM Week 3 Chapter 9CAPM Week 3 Chapter 9
CAPM Week 3 Chapter 9
 
CAPM Week 3 Chapter 8
CAPM Week 3 Chapter 8CAPM Week 3 Chapter 8
CAPM Week 3 Chapter 8
 

Recently uploaded

Lecture_Notes_Unit4_Chapter_8_9_10_RDBMS for the students affiliated by alaga...
Lecture_Notes_Unit4_Chapter_8_9_10_RDBMS for the students affiliated by alaga...Lecture_Notes_Unit4_Chapter_8_9_10_RDBMS for the students affiliated by alaga...
Lecture_Notes_Unit4_Chapter_8_9_10_RDBMS for the students affiliated by alaga...
Murugan Solaiyappan
 
formative Evaluation By Dr.Kshirsagar R.V
formative Evaluation By Dr.Kshirsagar R.Vformative Evaluation By Dr.Kshirsagar R.V
formative Evaluation By Dr.Kshirsagar R.V
DrRavindrakshirsagar1
 
(T.L.E.) Agriculture: Essentials of Gardening
(T.L.E.) Agriculture: Essentials of Gardening(T.L.E.) Agriculture: Essentials of Gardening
(T.L.E.) Agriculture: Essentials of Gardening
MJDuyan
 
Individual Performance Commitment Review Form-Developmental Plan.docx
Individual Performance Commitment Review Form-Developmental Plan.docxIndividual Performance Commitment Review Form-Developmental Plan.docx
Individual Performance Commitment Review Form-Developmental Plan.docx
monicaaringo1
 
New Features in Odoo 17 Sign - Odoo 17 Slides
New Features in Odoo 17 Sign - Odoo 17 SlidesNew Features in Odoo 17 Sign - Odoo 17 Slides
New Features in Odoo 17 Sign - Odoo 17 Slides
Celine George
 
matatag curriculum education for Kindergarten
matatag curriculum education for Kindergartenmatatag curriculum education for Kindergarten
matatag curriculum education for Kindergarten
SarahAlie1
 
How to Manage Large Scrollbar in Odoo 17 POS
How to Manage Large Scrollbar in Odoo 17 POSHow to Manage Large Scrollbar in Odoo 17 POS
How to Manage Large Scrollbar in Odoo 17 POS
Celine George
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
heathfieldcps1
 
Cómo crear video-tutoriales con ScreenPal (2 de julio de 2024)
Cómo crear video-tutoriales con ScreenPal (2 de julio de 2024)Cómo crear video-tutoriales con ScreenPal (2 de julio de 2024)
Cómo crear video-tutoriales con ScreenPal (2 de julio de 2024)
Cátedra Banco Santander
 
Odoo 17 Social Marketing - Lead Generation On Facebook
Odoo 17 Social Marketing - Lead Generation On FacebookOdoo 17 Social Marketing - Lead Generation On Facebook
Odoo 17 Social Marketing - Lead Generation On Facebook
Celine George
 
How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17
Celine George
 
The Cruelty of Animal Testing in the Industry.pdf
The Cruelty of Animal Testing in the Industry.pdfThe Cruelty of Animal Testing in the Industry.pdf
The Cruelty of Animal Testing in the Industry.pdf
luzmilaglez334
 
View Inheritance in Odoo 17 - Odoo 17 Slides
View Inheritance in Odoo 17 - Odoo 17  SlidesView Inheritance in Odoo 17 - Odoo 17  Slides
View Inheritance in Odoo 17 - Odoo 17 Slides
Celine George
 
How to Create & Publish a Blog in Odoo 17 Website
How to Create & Publish a Blog in Odoo 17 WebsiteHow to Create & Publish a Blog in Odoo 17 Website
How to Create & Publish a Blog in Odoo 17 Website
Celine George
 
What is Packaging of Products in Odoo 17
What is Packaging of Products in Odoo 17What is Packaging of Products in Odoo 17
What is Packaging of Products in Odoo 17
Celine George
 
Kesadaran_Berbangsa_dan_Bernegara_Nasion.pptx
Kesadaran_Berbangsa_dan_Bernegara_Nasion.pptxKesadaran_Berbangsa_dan_Bernegara_Nasion.pptx
Kesadaran_Berbangsa_dan_Bernegara_Nasion.pptx
artenzmartenkai
 
How To Create a Transient Model in Odoo 17
How To Create a Transient Model in Odoo 17How To Create a Transient Model in Odoo 17
How To Create a Transient Model in Odoo 17
Celine George
 
modul ajar kelas x bahasa inggris 2024-2025
modul ajar kelas x bahasa inggris 2024-2025modul ajar kelas x bahasa inggris 2024-2025
modul ajar kelas x bahasa inggris 2024-2025
NurFitriah45
 
Debts of Gratitude - Esselde and Informal Letter.pptx
Debts of Gratitude - Esselde and Informal Letter.pptxDebts of Gratitude - Esselde and Informal Letter.pptx
Debts of Gratitude - Esselde and Informal Letter.pptx
AncyTEnglish
 
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
Nguyen Thanh Tu Collection
 

Recently uploaded (20)

Lecture_Notes_Unit4_Chapter_8_9_10_RDBMS for the students affiliated by alaga...
Lecture_Notes_Unit4_Chapter_8_9_10_RDBMS for the students affiliated by alaga...Lecture_Notes_Unit4_Chapter_8_9_10_RDBMS for the students affiliated by alaga...
Lecture_Notes_Unit4_Chapter_8_9_10_RDBMS for the students affiliated by alaga...
 
formative Evaluation By Dr.Kshirsagar R.V
formative Evaluation By Dr.Kshirsagar R.Vformative Evaluation By Dr.Kshirsagar R.V
formative Evaluation By Dr.Kshirsagar R.V
 
(T.L.E.) Agriculture: Essentials of Gardening
(T.L.E.) Agriculture: Essentials of Gardening(T.L.E.) Agriculture: Essentials of Gardening
(T.L.E.) Agriculture: Essentials of Gardening
 
Individual Performance Commitment Review Form-Developmental Plan.docx
Individual Performance Commitment Review Form-Developmental Plan.docxIndividual Performance Commitment Review Form-Developmental Plan.docx
Individual Performance Commitment Review Form-Developmental Plan.docx
 
New Features in Odoo 17 Sign - Odoo 17 Slides
New Features in Odoo 17 Sign - Odoo 17 SlidesNew Features in Odoo 17 Sign - Odoo 17 Slides
New Features in Odoo 17 Sign - Odoo 17 Slides
 
matatag curriculum education for Kindergarten
matatag curriculum education for Kindergartenmatatag curriculum education for Kindergarten
matatag curriculum education for Kindergarten
 
How to Manage Large Scrollbar in Odoo 17 POS
How to Manage Large Scrollbar in Odoo 17 POSHow to Manage Large Scrollbar in Odoo 17 POS
How to Manage Large Scrollbar in Odoo 17 POS
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
Cómo crear video-tutoriales con ScreenPal (2 de julio de 2024)
Cómo crear video-tutoriales con ScreenPal (2 de julio de 2024)Cómo crear video-tutoriales con ScreenPal (2 de julio de 2024)
Cómo crear video-tutoriales con ScreenPal (2 de julio de 2024)
 
Odoo 17 Social Marketing - Lead Generation On Facebook
Odoo 17 Social Marketing - Lead Generation On FacebookOdoo 17 Social Marketing - Lead Generation On Facebook
Odoo 17 Social Marketing - Lead Generation On Facebook
 
How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17
 
The Cruelty of Animal Testing in the Industry.pdf
The Cruelty of Animal Testing in the Industry.pdfThe Cruelty of Animal Testing in the Industry.pdf
The Cruelty of Animal Testing in the Industry.pdf
 
View Inheritance in Odoo 17 - Odoo 17 Slides
View Inheritance in Odoo 17 - Odoo 17  SlidesView Inheritance in Odoo 17 - Odoo 17  Slides
View Inheritance in Odoo 17 - Odoo 17 Slides
 
How to Create & Publish a Blog in Odoo 17 Website
How to Create & Publish a Blog in Odoo 17 WebsiteHow to Create & Publish a Blog in Odoo 17 Website
How to Create & Publish a Blog in Odoo 17 Website
 
What is Packaging of Products in Odoo 17
What is Packaging of Products in Odoo 17What is Packaging of Products in Odoo 17
What is Packaging of Products in Odoo 17
 
Kesadaran_Berbangsa_dan_Bernegara_Nasion.pptx
Kesadaran_Berbangsa_dan_Bernegara_Nasion.pptxKesadaran_Berbangsa_dan_Bernegara_Nasion.pptx
Kesadaran_Berbangsa_dan_Bernegara_Nasion.pptx
 
How To Create a Transient Model in Odoo 17
How To Create a Transient Model in Odoo 17How To Create a Transient Model in Odoo 17
How To Create a Transient Model in Odoo 17
 
modul ajar kelas x bahasa inggris 2024-2025
modul ajar kelas x bahasa inggris 2024-2025modul ajar kelas x bahasa inggris 2024-2025
modul ajar kelas x bahasa inggris 2024-2025
 
Debts of Gratitude - Esselde and Informal Letter.pptx
Debts of Gratitude - Esselde and Informal Letter.pptxDebts of Gratitude - Esselde and Informal Letter.pptx
Debts of Gratitude - Esselde and Informal Letter.pptx
 
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
 

CAPM Muzette Charles Chapter11-13

  • 1. Certified Associate Project Management CAPM® Exam Prep – Week 6 Muzette Charles, PMP | mcharles2@pace.edu
  • 2. Risk Management Chapter 11 “… increase the likelihood & impact of positive events & decrease the likelihood & impact of negative events in the project.” • “Risk is an uncertain event that if it occurs, has a positive or negative effect on 1 or more of the project objectives of scope, schedule, cost & quality.” • Planned Risk Response: Known risks that are identified & analyzed • Contingency Reserve : Assigned for known risks that cannot be managed proactively • Management Reserve : Assigned for unknown risks that cannot be managed proactively • Positive risks = Opportunities • Negative risks = Threats  90% of Threats can be eliminated => if occur are known as Issues • Levels of Risks: Appetite, Tolerance, Threshold, Averse Process Process Group Key Deliverables 11.1 Plan Risk Management Planning Risk Management Plan 11.2 Identify Risks Planning Risk Register 11.3 Perform Qualitative Risk Analysis Planning Project Documents updates 11.4 Perform Quantitative Risk Analysis Planning Project Documents updates 11.5 Plan Risk Responses Planning Project Management Plan updates 11.6 Implement Risks Responses Executing Change requests 11.7 Monitor Risks Monitoring & Controlling Change requests
  • 3. Risk Management Chapter 11 Plan Risk Management Process 1 Key Points  “… process is vital to communicate with & obtain agreement & support from all stakeholders to ensure risk mgmt process is supported & performed over the project life cycle.”  Risk Mgmt Plan: Methodology, Roles & responsibilities, Budget, Timing, Risk Categories, Definitions of probability & impact (low to high/numerical), Stakeholder tolerances, Reporting & Tracking  Risk Categories aka Sources of Risks: external, internal (constraints), technical, unforeseeable (10%)
  • 4. Risk Management Chapter 11Identify Risk Process 2 Key Points  “… process of documenting existing risks & the knowledge & ability it provides the project team to anticipate events.”  “… is an iterative process, because new risks may evolve or become known as the project progresses.”  Tools: Info Gathering (see Scope tools), Diagramming (see Quality tools), SWOT  Risk Register: lists of risks, potential responses, root causes & updates
  • 5. Risk Management Chapter 11 Perform Qualitative Risk Analysis Process 3 Key Points  “… process of prioritizing risks by assessing their probability of occurrence & impact… to reduce the level of uncertainty & to focus on high-priority risks.”  Short-Listed Risks: those risks that have a high impact on project & warrant a response  Risk Urgency: those high impact risks that may occur soon and/or take a long time to plan a response  Risk Probability & Impact / Matrix: is Subjective, varies on the risk bias of the person doing the rating!!  Watch List: non-critical risks that are documented on the Risk Register & reviewed in Control Risks
  • 6. Risk Management Chapter 11 Perform Quantitative Risk Analysis Process 4 Key Points  “… process of assigning a numerical priority rating to those risks prioritized in Qualitative Risk Analysis.”  Risk Assessment is Objective: each risk based on actual probability of occurring & the impact (amount at stake)  Risk Analysis Tools: Sensitivity/Tornado Diagram, Expected Money Value (EMV=PxI), Monte Carlo/Probability
  • 7. Risk Management Chapter 11 Qualitative Risk Analysis - Risk Probability & Impact Matrix IMPACT Quantitative Risk Analysis – Expected Money Value (EMV) RISKS PROBABILITY IMPACT High Winds 30% Cost $500 to replace equipment Landslide 5% Lose $80,000 in damage costs Wind generator is usable 20% Save $8,000 in battery costs Truck rental unavailable 10% Cost $300 for last-minute rental Wild animals eat rations 10% Costs $100 for replacements Unseasonably warm weather 15% Saves $50,000 in excavation costs RISKS PROBABILITY IMPACT Landslide .1 .9 Winds .7 .9 No Truck .3 .7 Storms .5 .3 Supplies .1 .5 Illness .1 .1 Probability & Impact Matrix .9 .09 .27 .45 .63 .69 .7 .07 .21 .35 .49 .63 .5 .05 .15 .25 .35 .45 .3 .03 .09 .15 .21 .27 .1 .01 .03 .05 .07 .09 .1 .3 .5 .7 .9
  • 8. Risk Management Chapter 11Plan Risk Responses Process 5 Key Points  “… process enhances opportunities & reduce threats by inserting resources & activities into the budget, schedule & project management plan as needed.”  Tools:  Strategies for Negative Risks/Threats: Avoid or Mitigate (used for high priority/impact), Transfer, Accept (workarounds)  Strategies for Positive Risks/Opportunities: Exploit (take advantage), Enhance (influence triggers), Share, Accept  Outputs:  PMP Updates and Risk Register Updates: Residual Risks, Contingency Plans, Fallback Plans, Risk Owners, Secondary Risks, Risk triggers, Contracts, Reserves (contingency)  * Management Reserves: generally are 5% of the project budget to cover Unknown Risks
  • 9. Risk Management Chapter 11 Implement Risk Responses Process 6 Key Points  “…implement agreed upon risk responses as planned to minimize project threats and maximize project opportunities.”
  • 10. Risk Management Chapter 11 Monitor Risks Process 7 Key Points  “… process of implementing risk response plans, tracking identified risks, monitoring residual risks & identifying new risks throughout the project life cycle to continuously optimize risk response.”  Tools: Risk Audits (documented effectiveness of risk responses), Meetings (agenda item at status mtgs)
  • 12. Procurement Management Chapter 12 • “… is the process necessary to purchase or acquire products, services or results needed from outside the project team… includes controlling any contract issued outside of the organization.” • “Involves legal documents, agreements and/or contracts that are mutually binding between the buyer & seller “ • “Contract obligates the Seller to provide something of value & obligates the Buyer to provide monetary or other value compensation.” • “The Buyer becomes the customer & thus a key stakeholder for the Seller.” • “The Seller’s PM Team is concerned with all the processes of PM, not only those of this Knowledge Area.” Process Process Group Key Deliverables 12.1 Plan Procurements Planning Procurement Management Plan 12.2 Conduct Procurements Execution Selected Sellers 12.3 Control Procurements Monitoring & Controlling Change Requests
  • 13. Procurement Management Chapter 12Plan Procurements Process 1 Key Points  “… process documents procurement decisions, whether to acquire outside support, what to acquire, how to acquire, how much is needed, when to acquire and identifies potential Sellers.”  Cost: refers to how much it costs the Seller to create, develop,  Price: is the amount the Seller charges the Buyer  Profit: is the amount of money the Seller has left over after costs are paid  Contract Terms: Arbitration, Breach, Force Majeure, Indemnification (liability), etc… see page 350
  • 14. Procurement Management Chapter 12Plan Procurements Process 1 Key Points Types of Contracts  Purchase Order: simplest type of FP, signed by 1 party, PO becomes the contract when “accepted” by the Buyer  Fixed Price (FP): defined SOW, Buyer gets a fair/reasonable price, Seller high level of risk “Pt of Assumption”  Cost-Reimbursable (CR): scope is uncertain, cost not accurately estimated, Buyer has high risk  Time & Material (T&M): hybrid of both FP & CR, Unit Price is known, but not # of Hrs, Seller’s profit is built into rate, Buyer has medium risk, but can use clause “Not to Exceed” Tools  Make or Buy Analysis: does it decrease the project’s constraints, retain control, proprietary info?  Procurement / Bid Docs: Request for Proposal (RFP), Invitation to Bid (IFB), Request for Quote (RFQ)  Source Selection Criteria: can the Seller actually do the work, cover the costs, are subcontractors involved?
  • 15. Procurement Management Chapter 12Conduct Procurements Process 2 Key Points  “… process of obtaining seller responses, selecting a seller & awarding a contract.”  Qualified Seller List: prequalified list of sellers from OPA speeds up the process  Seller Proposals: sent to Buyer in response to RFP, IFB, RFQ  Tools: Bidder conference, Advertisements, Negotiations, etc  Outputs: Selected Sellers vs. Sole Source
  • 16. Procurement Management Chapter 12 Control Procurements Process 3 Key Points  “… process manages procurement relationships, monitors contract performance & makes changes & corrections to contracts as appropriate to ensure both the Seller & the Buyer’s performance meets the procurement requirements according to the terms of the legal agreement.”  Tools: Inspections & Audits, Payment Systems (accts rcvble/payable), Claims Admin aka Seller change requests (settled thru negotiations)
  • 17. Procurement Management Chapter 12 Process 3 Key Points  “… process involves administration activities to finalize open claims, update records to reflect final results & archiving information for future use.”  Ensures contractual agreements are completed or terminated  Early Termination: can be mutually agreed upon, default of 1 party or convenience to the Buyer  Termination Clause: Buyer may have to compensate Seller for any completed & accepted work  Unresolved Claims: may be subject to litigation after closure
  • 19. Stakeholder Management Chapter 13 “… is the process required to identify the people, groups or organizations, that could impact or be impacted by the project, to analyze stakeholder expectations, effectively engage in project decisions, focus on continuous communication to understand their needs & expectations, addressing issues as they occur & managing conflicting interests.” “Stakeholder satisfaction should be managed as a key project objective.” Process Process Group Key Deliverables 13.1 Identify Stakeholders Initiation Stakeholder Register 13.2 Plan Stakeholder Engagement Planning Stakeholder Management Plan 13.3 Manage Stakeholder Engagement Execution Issue Log 13.4 Monitor Stakeholder Engagement Monitoring & Controlling Change Requests
  • 20. Stakeholder Management Chapter 13Identify Stakeholders Process 1 Key Points  “… process is critical to PM’s success to identify the appropriate focus for each stakeholder early in project.”  Expert Judgment: Senior Mgmt, other units used to identify stakeholders power/interest
  • 21. Stakeholder Management Chapter 13 Plan Stakeholder Management Process 2 Key Points  “… process develops the appropriate strategies to effectively engage stakeholders throughout the project life cycle based on the analysis of their needs, interests & potential impact on project’s success.”  Stakeholder Engagement Matrix:  used to classify Current (C) engagement & who needs to be moved to Desired (D) engagement
  • 22. Stakeholder Management Chapter 13 Manage Stakeholder Engagement Process 3 Key Points  “… process of communicating & working with stakeholders to meet their needs/requirements.”  “Allows the PM to increase support & minimize resistance from stakeholders to significantly increase the chances of achieving project success.”  Communicate… Communicate… Communicate!!:  Use Interpersonal skills, build trust, resolve conflicts, active listening  Issues Log: documents issues & tracks their resolutions
  • 23. Stakeholder Management Chapter 13 Monitor Stakeholder Engagement Process 4 Key Points  “… process monitoring overall project stakeholder relationships & adjusting strategies & plans for engaging stakeholders.
  • 25. Summary Identify each of the 49 Project Processes by their Knowledge Areas
  • 26. CAPM Exam Prep Group Exercise & Quiz 6 • Review of all 5 Process Groups • Review of all 10 Knowledge Areas • Identify each of the 49 Processes by their Process Group & key ITTOs • Identify Network Diagrams, Critical Paths, Organizations, Earned Value & Forecasting Techniques