The document outlines the importance of stakeholder identification and risk management in project management within international relations. It details various types of stakeholders, their categorization, and the processes involved in stakeholder engagement and risk mitigation. Additionally, it discusses risk management strategies, tools, and the need for ongoing risk monitoring to ensure project success.

1. IRL6050-C:
PROJECT MANAGEMENT IN
INTERNATIONAL RELATIONS
Determining Project
Stakeholders & Risks

2. Stakeholder
“A person or group of people who have a vested
interest in the success of an organization or project and
the environment in which the organization/ project
operates”
Stakeholders are persons, groups or institutions with
interests in a project or program.
Write down three typical project stakeholders

3. Typical Stakeholders
Sponsor
Funding Body
Customer
Suppliers
End User
NEMA/Environmental
Agency
Maintenance Team
Neighbours/Community/
Shareholders
Fusion Community
Interfaces

4. Stakeholder cont.
 Primary stakeholders are those ultimately
affected either positively (beneficiaries) or
negatively (for example, for those involuntarily
resettled).
 Secondary stakeholders are the intermediaries.
Those that are not directly affected by the
project

6. Stakeholder Engagement process
Identify Stakeholders
Assess needs
Define actions
Establish communication channels
Gather feedback
Monitor and review

7. Identify Stakeholders
When should it be done?
Stakeholder identification and
analysis should always be done
at the beginning of a project,
even if it is a quick list of
stakeholders and their
interest.
Objectives of Stakeholder Identification
to get a clear understanding
as to who the main
stakeholders are and
to understand their values,
beliefs, problems and attitudes
towards the project.

8. The Processes Involve
 Identifying the
stakeholders
 Analyze them, and
 Developing a strategy to
manage them

9. Identifying Stakeholders
 Documenting relevant
information regarding
their:
interests
Involvement and
Impact on project
success
Identifying stakeholders Increase
likelihood of
• project success, Identify
them early and make an
analysis on their
- level of interest
- expectation
- importance
- attitude and influence

10. Stakeholder
Categorization
 Tuman J. (1993) categorized stakeholders into
four main groups. These include:
1. Project champions
2. Project participants
3. Community participants
4. Parasitic participants
PROJECT CHAMPIONS
Are those who have some reason to bring
a project into being. These stakeholders
include the developers, investors, and
entrepreneurs motivated by profit.

11. Project Participants
The project participants group
includes organizations and
individuals who are responsible
for planning and executing the
project.
Typically this include the Project
manager and project team,
engineers, constructors, vendors,
suppliers, crafts people, and
regulatory agencies at the local,
slate, and national levels.

12. Community
Participants
Community participants include
groups or individuals who are
directly affected by the project.
Community participants create the
environment that surrounds the
project.
The group can materialize because
of environmental, social, political,
economic, health, or safety
concerns.

13. The Passive/Parasitic Participants
The parasitic participants presents an
interesting and vital works for project managers.
Parasitic participants consist of organizations
and individuals who do not have a direct stake
in projects.
In this group we find the opportunists, the
activists and others who are looking for a
focal point for their energies, internal drives
and to promote their personal
philosophies and views.

14. Stakeholder Categorization
Project
Champion
Project
Participant
Community
Participant
Parasitic/Passive
Participant
 Developers
 Clients/customers
 Politicians
 Community
Leaders-Chiefs,
Opinion Leaders
 Visionaries
 Project
Management
Team
 Contractors
 Vendors
 Constructors
 The Community
 Special interest
groups-churches,
women and
men’s group
 environmentalist
 Media
 Activist

15. Checklist for Identifying Stakeholders
1. Have all primary and secondary stakeholders been listed?
2. Have all categories been identified?
3. Have all potential supporters and opponents of the project been
identified?
4. Have primary stakeholders been divided into user, occupational
groups /income groups?
5. Are there any new primary or secondary stakeholders that are likely to emerge as
a result of the project?

16. Identifying Stakeholders
INPUTS
TOOLS AND
TECHNIQUES
OUTPUTS

17. Inputs
 PROJECT CHARTER –
can provide information about internal and external parties involved in and affected by
the project.
 PROCUREMENT DOCUMENTS –
if project is based on procurement activity or is based on an established contract, the legal
parties in the documents become stakeholders including suppliers subcontractors etc.
 ENTERPRISE ENVIRONMENTAL FACTORS (EEF’S)
Includes organizational or company culture and structure Or/and Governmental or
industry standards such as regulations, and product standards.
 ORGANIZATIONAL PROCESS ASSETS (OPA
’S) –
includes stakeholder register templates, lessons learned from previous projects and
stakeholder register from previous projects.

18. Tools and Techniques
 Stakeholder analysis- a technique to identify and
analyze the stakeholders surrounding a project.
 STAKEHOLDER ANALYSIS – is a process
of systemically gathering and analyzing
quantitative and qualitative information to
determine whose interests should be taken into
accountability throughout the project.

19. Process of Stakeholder Analysis
 First, the project manager has to build a project team that has
the skill to address all stakeholder requirements and concerns.
 Second, the team must develop strategies for dealing with the
different levels of power.
 Finally, resources must be obtained to deal with stakeholder
issues that are beyond normal project demands.

20. Stakeholder analysis generally
follow the steps described below:
1. identify all potential project stakeholders and relevant
information.
2. identify the potential impact or support each stakeholder
could generate, and classify them so as to define an approach
strategy.
3. assess how key stakeholders are likely to react on the respond
in various situations, in order to plan how to win or enhance
their support an mitigate negative impacts

22. Stakeholder Analysis Information Finding
The process can be used by a single person. It works
better, however, if a diverse small group does it.
 Draw up chart
 List Stakeholders
 Estimate Attitude and influence
 Plan strategy

23. Using the findings of a Stakeholder Analysis
The Project Concept Note-
 the main findings of a stakeholder analysis should be included in
the project concept note.
 Such a summary needs to be brief because
a. of the nature of concept notes, and
b. the analysis will probably be revised as the project design
develops, interest change, and more information becomes
available.

24. Using the findings of a Stakeholder Analysis
 The Project Document-
 all project documents will need more details than the concept
note, drawing on both the stakeholder analysis and any revisions
arising out of appraisal.
 Project Appraisal Document (PAD) submissions are likely to
require more detail of key secondary and primary stakeholders,
their various interests, and their relative influence and importance.
 This information should appear in summary form in the Social
and institutional section of the project document.

26. Project Risk Management

27. Project Risk – Definition
“Project risk is an uncertain event or
condition that, if it occurs, has a positive
or negative effect on a project objective”
Risk is an uncertain event that may
have a positive or negative impact on
the project.

28. Residual and Secondary Risks
It’s also important to identify residual and secondary
risks.
Residual risks are risks that remain after all of
the response strategies have been implemented.
Secondary risks are a direct result of
implementing a risk response.

29. What is Risk Management?
Risk Management is the process
of identifying and migrating risk.
Is the art and science of
identifying, analyzing, and
responding to risk throughout the
life of a project and in the best
interests of meeting project
objectives.

30. What is the Risk Management process?
The Risk Management Process
consists of a series of steps that,
when undertaken in sequence,
enable continual improvement in
decision-making.

31. Why is it important?
 Risk affects all aspects of your
project – your budget, your
schedule, your scope, the agreed
level of quality, and so on
 Increase probability of positive
event.
 Reduce the occurrence of negative
event.

32. What does it include?
 Risk Management Planning
 Risk Identification
 Qualitative RiskAnalysis
 Quantitative RiskAnalysis
 Risk Response Planning
 Risk Monitoring and Control

33. How is it done in project?
 Make Risk Management Part of Your
Project
 Identify Risks Early in Your Project
 Communicate About Risks
 Consider Both Threats and
Opportunities
 Clarify Ownership Issues

34. How is it done in project? Cont.
Prioritise Risks
Analyse Risks
Plan and Implement Risk
Responses
Register Project Risks
Track Risks and Associated
Tasks

35. Risk in Project Management
Plan Risk
Management
Quantitative
Risk Analysis
Identify Risk
Plan Risk
Response
Qualitative
Risk Analysis
Monitor and
Control Risk

36. Plan Risk Management
Analysis and decision making to
implement risk management.
Appropriate to size and
complexity of the project.
Stakeholders will be involved in
planning risk management.

37. Risk Management Plan
Schedule Risk
Cost Risk
Quality Risk
Scope Risk
Resource Risk
Customer Satisfaction Risk

38. Identify Risk
 Which risk has more probability
of affecting the project?
 SWOTAnalysis
 Information gathering
 Check-listAnalysis
 AssumptionAnalysis

39. Qualitative Risk Analysis
Assess the likelihood and impact of identified risks to
determine their magnitude and priority.
Risk quantification tools and techniques include:
Probability/impact matrixes
The Top Ten Risk Item Tracking
Expert judgment

40. Qualitative Risk Analysis
 Assess impact and likelihood
of the identified risk.
 Probability and Impact
Matrix.
 Risk categorization.
 Risk urgency assessment.

41. Quantitative Risk Analysis
Often follows qualitative risk analysis, but both can be done together.
Large, complex projects involving leading edge technologies often
require extensive quantitative risk analysis.
 Data gathering
 Direct
 Diagrammatic
 Delphi
 Probability distribution

42. Quantitative Risk Analysis
Main techniques include:
Decision tree analysis
Simulation
Sensitivity analysis
Expert Judgment

43. Plan Risk Response
Eliminate threats before they
happen.
Decrease impact of threat.
Contingency plan ( Do
something if risk happens)
Fallback plan ( Do something if
contingency plans are not effective)

44. Plan Risk Response
 Negative risk or threat
 Avoid
 Transfer
 Mitigate
 Accept
 Positive risk or opportunity
 Exploit
 Share
 Enhance

45. Monitor and Control Risk
Risk Reassessment (Scheduled regularly
to identify new risk)
Risk Audit (Examine the effectiveness
of planned risk response)
Trend analysis (Monitor overall
project performance)

46. What are the benefits?
 Effective use of resources
 Promoting continuous
improvement
 Fewer shocks and failures
 Strategic business planning
 Raised awareness of significant
risks.

47. What are the benefits? Cont.
Quick grasp of new opportunities
Enhancing communication
Reassuring stakeholders
Focus on internal audit
programme
Recognition of responsibility
and accountability.

49. Risk Response Planning
After identifying and quantifying risks, you must decide how to respond to
them.
Four main response strategies for negative risks:
 Risk avoidance
 Risk acceptance
 Risk transference
 Risk mitigation

50. Response Strategies for Positive Risks
Risk exploitation
Risk sharing
Risk enhancement
Risk acceptance

51. Sensitivity analysis.
This involves analysing the project
to determine how sensitive is to
particular risks by analysing the
impact and severity of each risk.

52. Expected monetary value analysis.
In broad terms, determining the expected monetary
value is to multiply the likelihood by the cost impact
to obtain an expected value for each risk, these are
then added up to obtain the expected military value
for the project.
A typical way of calculating EMV is using decision
trees

53. Tornado diagrams.
These are named because of their funnel shaped and portray
graphically the project sensitivity to cost or other factors.
Each tornado diagram will represent the impact of risks in
terms of particular aspects.
These aspects may be the stages of phases of all project, and
are ranked vertically and represented by a horizontal bar showing
plus or minus cost impacts.

54. Modeling and simulation
The most common form of this is Monte Carlo
analysis which is normally calculated by computer
by analysing many scenarios for the project
schedule and calculating the impact of particular
the risk events and is helpful in identifying risks
and the effect they have on the project schedule.

55. Expert Judgment
Many organizations rely on the intuitive feelings and past
experience of experts to help identify potential project
risks.
Experts can categorize risks as high, medium, or low with
or without more sophisticated techniques.
Can also help create and monitor a watch list, a list of
risks that are low priority, but are still identified as potential
risks.

56. Decision tree analysis.
These are in the form of a flow diagram where each node,
represented by a rectangle, contains a description of the risk
aspect and its cost.
These rectangles are linked together via arrows each arrow
leading to another box representing the percentage probability.
These totals are calculated by multiplying the risk costs by the
probability and adding that value to the initial cost.

57. General Risk Mitigation Strategies
for Technical, Cost, and Schedule Risks

58. Risk Monitoring and Control
Involves executing the risk management process to respond to risk events.
Workarounds are unplanned responses to risk events that must be done
when there are no contingency plans.
Main outputs of risk monitoring and control are:
Requested changes.
Recommended corrective and preventive actions.
Updates to the risk register, project management plan, and
organizational process assets.

59. Using Software to Assist
in Project Risk Management
Risk registers can be created in a simple Word or Excel file
or as part of a database.
More sophisticated risk management software, such as
Monte Carlo simulation tools, help in analyzing project
risks.
The PMI Risk Specific Interest Group’s Web site at
www.risksig.com has a detailed list of software products to
assist in risk management.

60. Results of Good
Project Risk Management
Unlike crisis management, good project risk
management often goes unnoticed.
Well-run projects appear to be almost effortless, but a
lot of work goes into running a project well.
Project managers should strive to make their jobs look
easy to reflect the results of well-run projects.

61. Results of Good
Project Risk Management
Unlike crisis management, good project risk
management often goes unnoticed.
Well-run projects appear to be almost effortless, but a
lot of work goes into running a project well.
Project managers should strive to make their jobs
look easy to reflect the results of well-run projects.

62. Risk register
A risk register is a tool in risk management and project management.
It is used to identify potential risks in a project or an organization, sometimes to fulfill
regulatory compliance but mostly to stay on top of potential issues that can derail
intended outcomes.
The risk register includes all information about:
each identified risk,
the nature of that risk,
level of risk,
who owns it, and
the mitigation measures in place to respond to it.

63. Sample Risk Register / Risk Analysis
No. Rank Risk Description Category Root
Cause
Triggers Potential
Responses
Risk
Owner
Probability Impact Severity Status
R44 1
R21 2
R7 3
Project severity = expectation (1-10) * impact (1-10)
When should risk analysis be formed?
Is not a time activity
Periodic update and reviewed