This document provides an overview of project risk management. It defines risk and discusses key concepts like risk appetite, tolerance, and threshold. It also categorizes examples of risks as external, internal, technical, and management-related. The chapter outlines the process for planning risk management, including inputs like the project management plan, charter, and stakeholder register. Tools and techniques for planning risk management include analytical methods and expert judgment. The main output is a risk management plan that defines the methodology, roles, budget, risk categories, and risk matrix to be used to manage project risks.
Episode 25 : Project Risk Management
Understand what risk is and the importance of good project risk management.
Discuss the elements involved in risk management planning and the contents of a risk management plan.
List common sources of risks in engineering and information technology projects.
Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register.
SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
The concepts and processes on how to perform project risk management according to PMBOK Guide 6th edition. You'll find key concepts and terms, plan risk management, identify risks, perform qualitative & quantitative risks analysis, plan risk responses, implement risk responses, and monitor risks.
A risk is defined as “an uncertain event or condition that, if it occurs, has a positive and negative effect on a project’s objectives.” Risk is inherent with any project, and project managers should assess risk continually and develop plan to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critical, risk management plans include a risk strategy.
This module on Managing Risk discusses different type of risk that needs to be taken into account by the management while implementing a project. The other topics converged in this module include probability-impact matrix, Risk Quantification; Mitigating/Transferring risk; Risk audits/Review; Sample Risk plan and how to initiate Risk Management Planning.
Episode 25 : Project Risk Management
Understand what risk is and the importance of good project risk management.
Discuss the elements involved in risk management planning and the contents of a risk management plan.
List common sources of risks in engineering and information technology projects.
Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register.
SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
The concepts and processes on how to perform project risk management according to PMBOK Guide 6th edition. You'll find key concepts and terms, plan risk management, identify risks, perform qualitative & quantitative risks analysis, plan risk responses, implement risk responses, and monitor risks.
A risk is defined as “an uncertain event or condition that, if it occurs, has a positive and negative effect on a project’s objectives.” Risk is inherent with any project, and project managers should assess risk continually and develop plan to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critical, risk management plans include a risk strategy.
This module on Managing Risk discusses different type of risk that needs to be taken into account by the management while implementing a project. The other topics converged in this module include probability-impact matrix, Risk Quantification; Mitigating/Transferring risk; Risk audits/Review; Sample Risk plan and how to initiate Risk Management Planning.
Contents are sourced from different authors including PMBOK 5th Edition.
This is provided for free as part of our Continuing Practice in Project Management Professional Certification. You may download, share but please refrain from commercializing it or altering parts. Thanks.
For more on Innovations and Project Management, please visit www.facebook.com/SigmaProcessExcellence
The concepts and processes on how to perform project stakeholder management according to PMBOK Guide 6th edition. You'll find key concepts and terms, identify stakeholders, plan stakeholder management, manage stakeholders, and monitor stakeholders.
The above presentation talks about the risk involved in any project. The project risk identification, quantification, response and its control is also thoroughly explained.
Contents are sourced from different authors including PMBOK 5th Edition.
This is provided for free as part of our Continuing Practice in Project Management Professional Certification. You may download, share but please refrain from commercializing it or altering parts. Thanks.
For more on Innovations and Project Management, please visit www.facebook.com/SigmaProcessExcellence
The concepts and processes on how to perform project stakeholder management according to PMBOK Guide 6th edition. You'll find key concepts and terms, identify stakeholders, plan stakeholder management, manage stakeholders, and monitor stakeholders.
The above presentation talks about the risk involved in any project. The project risk identification, quantification, response and its control is also thoroughly explained.
Pmbok 5th planning process group part four _ Project Risk ManagementHossam Maghrabi
This is PMBOK Guide Planning Process Group Part Four. It includes one Knowledge Area - Project Risk Management - with five processes - Plan Risk Management, Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses -.
Webinar - Building Team Efficiency and EffectivenessInvensis Learning
Wouldn’t it be great if you could get to better ideas faster? If you learn to master just two thinking skills, you can! Many of the PMI supported tools have origins in creativity. As such, these tools are best leveraged when you apply divergent thinking (to generate) or convergent thinking (to narrow). This session will explore the principles of divergent and convergent thinking and provide examples of techniques to maximize their power in decision making, problem solving and performance feedback.
MBA 6941, Managing Project Teams 1 Course Learning Ou.docxaryan532920
MBA 6941, Managing Project Teams 1
Course Learning Outcomes for Unit VI
Upon completion of this unit, students should be able to:
4. Explore the dynamics of project teams.
4.1 Describe the positive and negative risks of a project and how they can affect the project team.
4.2 Identify risk response plans based on the key processes of project risk management and how
team members can play a role in these plans.
Reading Assignment
Chapter 14:
Risk
Unit Lesson
Project risk is an uncertain event in the future, and if it occurs, it will have a positive or negative impact on one
or more project objectives, including scope, schedule, cost, and quality. Risk may have one or more causes
such as requirement, assumption, and constraints or conditions that create the possibility of negative or
positive outcomes.
It is normal even for the extremely organized and most carefully planned project to run into unexpected
troubles. Several factors such as inadequate resources, the project environment, the project management
processes, and other facets can contribute to project risks. We will be able to anticipate some risks in
advance and come up with response plans; other risk events will occur unannounced during the project.
Team members can get sick or quit unexpectedly, sudden weather change can drastically limit your options,
and even resources that you are depending on may become unavailable. The purpose of risk management is
to identify potential problems that could cause concern for your project, analyze how likely and at what
frequency they will occur, take preventive actions for the ones you can avoid, and minimize the impacts and
probability for the ones you cannot avoid. There are two generalized types of risk:
business risk (risk of loss/threat or gain/opportunity) and
pure risk (only a risk of loss/threat)—are sometimes also called insurable risks and can include
events like fire, theft, personal injury, and other elements.
Opportunity (Positive Risk): These are the risks with positive effects. It is a favorable situation in the
organizational environment. Some examples include the arrival of new technology or the removal of an
international trade barrier. In addition, the fulfillment of a previously unfulfilled customer need may have a
significant positive impact on your project.
Threats (Negative Risk): These are external elements in the environment that arise from political, economic,
social, and technological (PEST) forces and can cause trouble for the business. Some examples can include
new regulations, increased trade barriers, or the emergence of substitute products.
A few additional threats include the following:
anything external that might cause problems, damage, or injury;
technological developments that may make your offerings obsolete;
market changes that may result from changes in customer needs, competitor’s moves, or
demographic shifts; or
the ...
5 Project Risk Management
adrian825/iStock/Thinkstock
Learning Objectives
By the end of this chapter, you will be able to:
• Define and describe project risk.
• Understand the risk management process.
• Discuss the risk identification process.
• Explain the risk analysis process.
• Describe the risk response process.
• Explain the role of risk monitoring and control.
CO_CRD
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bar81677_05_c05_149-172.indd 149 9/9/14 10:49 AM
Introduction
Pretest
1. Brainstorming is a good initial approach for identifying risks to a project.
a. True
b. False
2. The risk management process is a three-step process.
a. True
b. False
3. When risks are identified later in the project process, the cost to address these issues
will increase.
a. True
b. False
4. A risk that has a high probability of occurring might have little impact on a project.
a. True
b. False
5. A project manager who has not created a documented risk response plan has not
considered risks fully enough.
a. True
b. False
6. An output of risk monitoring and control includes updating the risk database.
a. True
b. False
Answers can be found at the end of the chapter.
Introduction
Have you ever visited a public park facility and seen an observation tower with a sign reading
“Climb at your own risk?” That is a good example of risk, the chance that something could go
wrong. The park is not only warning you about the risks of climbing the tower, but also saying
that it is not liable should something happen during the climb. In other words, the park is not
willing to share in the risk—it is all yours. In project management there are similar risks that
something will go wrong. The best way to handle anticipated risks is to document and analyze
them beforehand and decide what to do about them should they occur.
Good managers look for risks throughout the project cycle, know what the risks are before they
occur, and work to communicate, prevent, and offset them in their daily decisions and routines.
For instance, if the project manager is aware that a supplier of a key product component might
not keep an adequate inventory of that component on hand and could potentially delay the
project when it is due, the manager may adjust the relevant supply contract to include a penalty
clause for late delivery or make other changes in the way the supplier’s inventory is handled.
The principle is that project managers should be able to identify what might happen, what
the probabilities are that a risk event might occur, what the impacts will be, and how to
prevent or mitigate risks. This principle assumes that failure can be attributed to key events
or circumstances.
H1
sec_n sec_t
bar81677_05_c05_149-172.indd 150 9/9/14 10:49 AM
Section 5.1 The Risk Problem
Risk management is the process of recognizing risks and dealing with them in a project. This
means that risks are identified, ana.
As per PMBOK - "The whole point of undertaking a project is to achieve or establish something new, to venture, to take chances, to risk. Risk may have positive effects or negative effects on the project “Schedule” and/or “Cost”. Positive risks are Opportunities and negative risks are losses or threats; remember both risks are uncertain “percentage of occurrence less than 80%”. Risk Management purpose is to manage (Plan and implement) these uncertainties.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
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Home assignment II on Spectroscopy 2024 Answers.pdf
Project Risk Management
1. Chapter
9:
Project
Risk
Management
Stevbros
Training
&
Consultancy
www.stevbros.edu.vn
Copyright@STEVBROS
Project
Mamagement
Fundamentals
1
PMI,
PMP
and
PMBOK
are
registered
marks
of
the
Project
Management
Ins9tute,
Inc.
2. Overview
Ini%a%ng
process
group
Planning
process
group
Execu%ng
process
group
Monitoring
&
controlling
process
group
Closing
process
group
Project
risk
management
• Plan
Risk
Management
• IdenJfy
Risks
• Perform
QualitaJve
Risk
Analysis
• Perform
QuanJtaJve
Risk
Analysis
• Plan
Risk
Responses
• Control
Risks
Copyright@STEVBROS
Project
Mamagement
Fundamentals
2
3. What
is
Risk?
• Risk
is
an
uncertain
event
or
condiJon
that,
if
it
occurs,
has
a
posiJve
or
negaJve
effect
on
a
project’s
objecJves
• Example
of
posiJve
events
– You
ordered
new
soVware
which
is
cheaper
than
your
old
soVware
because
of
budget
constraints.
However,
the
new
soVware
turns
out
to
be
more
efficient.
• Example
of
negaJve
events
– The
government
mandates
a
compulsory
holiday
due
to
an
outbreak
of
swine
flu.
The
project
gets
delayed
Copyright@STEVBROS
STEVBROS
-‐
Global
PMI
R.E.P
3
4. Concepts
• Risk
appe9te,
which
is
the
degree
of
uncertainty
an
enJty
is
willing
to
take
on,
in
anJcipaJon
of
a
reward.
• Risk
averse,
one
who
does
not
take
risks.
•
Risk
tolerance,
which
is
the
degree,
amount,
or
volume
of
risk
that
an
organizaJon
or
individual
will
withstand.
• Risk
threshold,
which
refers
to
measures
along
the
level
of
uncertainty
or
the
level
of
impact
at
which
a
stakeholder
may
have
a
specific
interest.
Below
that
risk
threshold,
the
organizaJon
will
accept
the
risk.
Above
that
risk
threshold,
the
organizaJon
will
not
tolerate
the
risk.
Copyright@STEVBROS
STEVBROS
-‐
Global
PMI
R.E.P
4
5. Risk
categorizaJon
examples
• Example
1:
– External:
regulatory,
governmental,
subcontractors,
suppliers,
and
environmental
– Internal:
funding,
resource,
and
prioriJzaJon
– Technical:
requirements,
technology,
and
quality
– Project
Management:
esJmaJng,
planning,
schedule,
and
communicaJon
• Example
2:
– Schedule
risk:?
– Cost
Risk?
– Quality
Risk?
– Scope
Risk:
Looks
like
you
have
not
understood
the
work
properly
and
you
might
have
to
redo
the
whole
thing!
– Resource
Risk:
CEO
has
asked
the
technical
architect
to
work
on
another
project.
In
such
cases,
who
would
make
design
decisions
on
the
projects?
Copyright@STEVBROS
STEVBROS
-‐
Global
PMI
R.E.P
5
7. Inputs
1. Project
Management
Plan
– all
approved
subsidiary
management
plans
and
baselines
should
be
taken
into
consideraJon
in
order
to
make
the
risk
management
plan
consistent
with
them
2. Project
Charter
– can
provide
various
inputs
such
as
high-‐level
risks,
high-‐level
project
descripJons,
and
high-‐level
requirements.
3. Stakeholder
Register
4. Enterprise
Environmental
Factors
– contain
risk
aetudes,
thresholds,
and
tolerances
that
describe
the
degree
of
risk
that
an
organizaJon
will
withstand.
5. OrganizaJonal
Process
Assets
– contain
risk
categories,
common
definiJons
of
concepts
and
terms,
risk
statement
formats,
standard
templates,
roles
and
responsibiliJes,
authority
levels
for
decision
making,
and
lessons
learned.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
7
8. Tools
and
techniques
1. AnalyJcal
Techniques
– for
example,
a
stakeholder
risk
profile
analysis
may
be
performed
to
grade
and
qualify
the
project
stakeholder
risk
appeJte
and
tolerance.
Other
techniques,
such
as
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.
2. Expert
Judgment
3. MeeJngs
Copyright@STEVBROS
Project
Mamagement
Fundamentals
8
9. Outputs
1. Risk
Management
Plan
– Methodology:
approaches,
tools,
and
data
sources
that
will
be
used
to
perform
risk
management
on
the
project.
– Roles
and
responsibiliJes
– BudgeJng
– Timing
– Risk
categories
– DefiniJons
of
risk
probability
and
impact
– Probability
and
impact
matrix
(details
at
next
slide).
– Revised
stakeholders’
tolerances.
– ReporJng
formats
– Tracking:
documents
how
risk
acJviJes
will
be
recorded
for
the
benefit
of
the
current
project
and
how
risk
management
processes
will
be
audited.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
9
12. Inputs(1/3)
1. Risk
Management
Plan
– are
the
assignments
of
roles
and
responsibiliJes,
provision
for
risk
management
acJviJes
in
the
budget
and
schedule,
and
categories
of
risk,
which
are
someJmes
expressed
as
a
risk
breakdown
structure
2. Cost
Management
Plan
– provides
processes
and
controls
that
can
be
used
to
help
idenJfy
risks
across
the
project.
3. Schedule
Management
Plan
– provides
insight
to
project
Jme/schedule
objecJves
and
expectaJons
which
may
be
impacted
by
risks
(known
and
unknown).
4. Quality
Management
Plan
– provides
a
baseline
of
quality
measures
and
metrics
for
use
in
idenJfying
risks.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
12
13. Inputs(2/3)
5. Human
Resource
Management
Plan
– provides
guidance
on
how
project
human
resources
should
be
defined,
staffed,
managed,
and
eventually
released.
6.
Scope
Baseline
– uncertainty
in
project
assumpJons
should
be
evaluated
as
potenJal
causes
of
project
risk.
– the
WBS
is
a
criJcal
input
to
idenJfying
risks
as
it
facilitates
an
understanding
of
the
potenJal
risks
at
both
the
micro
and
macro
levels.
Risks
can
be
idenJfied
and
subsequently
tracked
at
summary,
control
account,
and/or
work
package
levels.
7. AcJvity
Cost
EsJmates
– acJvity
cost
esJmate
reviews
are
useful
in
idenJfying
risks
8. AcJvity
DuraJon
EsJmates
– acJvity
duraJon
esJmate
reviews
are
useful
in
idenJfying
risks
Copyright@STEVBROS
Project
Mamagement
Fundamentals
13
14. Inputs(3/3)
9. Stakeholder
Register
– ensure
that
key
stakeholders,
especially
the
stakeholder,
sponsor,
and
customer
are
interviewed
or
otherwise
parJcipate
during
the
IdenJfy
Risks
process
10. Project
Documents
– include
project
charter,
project
schedule,
schedule
network
diagrams,
issue
log,
quality
checklist,
and
other
informaJon
proven
to
be
valuable
in
idenJfying
risks.
11. Procurement
Documents
– the
complexity
and
the
level
of
detail
of
the
procurement
documents
should
be
consistent
with
the
value
of,
and
risks
associated
with,
planned
procurement.
12. Enterprise
Environmental
Factors
– include
published
informaJon,
including
commercial
databases,
academic
studies,
published
checklists,
benchmarking,
industry
studies,
and
risk
aetudes.
13. OrganizaJonal
Process
Assets
– include
project
files,
including
actual
data,
organizaJonal
and
project
process
controls,
risk
statement
formats
or
templates,
and
lessons
learned.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
14
15. Tools
and
techniques(1/2)
1. DocumentaJon
Reviews
– The
quality
of
the
plans,
as
well
as
consistency
between
those
plans
and
the
project
requirements
and
assumpJons,
may
be
indicators
of
risk
in
the
project.
2. InformaJon
Gathering
Techniques
– Include
brainstorming,
Delphi
technique,
Interviewing,
Root
cause
analysis.
3. Checklist
Analysis
– are
developed
based
on
historical
informaJon
and
knowledge
that
has
been
accumulated
from
previous
similar
projects
and
from
other
sources
of
informaJon.
The
lowest
level
of
the
RBS
can
also
be
used
as
a
risk
checklist.
4. AssumpJons
Analysis
– Every
project
and
its
plan
is
conceived
and
developed
based
on
a
set
of
hypotheses,
scenarios,
or
assumpJons.
AssumpJons
analysis
explores
the
validity
of
assumpJons
as
they
apply
to
the
project.
It
idenJfies
risks
to
the
project
from
inaccuracy,
instability,
inconsistency,
or
incompleteness
of
assumpJons.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
15
16. Tools
and
techniques(2/2)
5. Diagramming
Techniques
– Include
Cause
and
effect
diagrams,
System
or
process
flow
charts,
Influence
diagrams.
(details
at
next
slides)
6. SWOT
Analysis
– examines
the
project
from
each
of
the
strengths,
weaknesses,
opportuniJes,
and
threats
(SWOT)
perspecJves
to
increase
the
breadth
of
idenJfied
risks
by
including
internally
generated
risks
7. Expert
Judgment
– Risks
may
be
idenJfied
directly
by
experts
with
relevant
experience
with
similar
projects
or
business
areas.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
16
19. Outputs
1. Risk
Register
– List
of
idenJfied
risks:
• A
structure
for
describing
risks
using
risk
statements
may
be
applied,
for
example,
EVENT
may
occur
causing
IMPACT,
or
If
CAUSE
exists,
EVENT
may
occur
leading
to
EFFECT.
• In
addiJon
to
the
list
of
idenJfied
risks,
the
root
causes
of
those
risks
may
become
more
evident.
– List
of
potenJal
responses
Copyright@STEVBROS
Project
Mamagement
Fundamentals
19
21. Inputs
1. Risk
Management
Plan
– Analysis
process
include
roles
and
responsibiliJes
for
conducJng
risk
management,
budgets,
schedule
acJviJes
for
risk
management,
risk
categories,
definiJons
of
probability
and
impact,
the
probability
and
impact
matrix,
and
revised
stakeholders’
risk
tolerances
2. Scope
Baseline
– E.g.
Projects
of
a
common
or
recurrent
type
tend
to
have
more
well-‐
understood
risks.
Projects
using
state-‐of-‐the-‐art
or
first-‐of-‐its-‐kind
technology,
and
highly
complex
projects,
tend
to
have
more
uncertainty.
3. Risk
Register
– contains
the
informaJon
that
will
be
used
to
assess
and
prioriJze
risks.
4. Enterprise
Environmental
Factors
– include
industry
studies
of
similar
projects
by
risk
specialists,
and
risk
databases
that
may
be
available
from
industry
or
proprietary
sources.
5. OrganizaJonal
Process
Assets
– include
informaJon
on
prior,
similar
completed
projects
Copyright@STEVBROS
Project
Mamagement
Fundamentals
21
22. Tools
and
techniques
1. Risk
Probability
and
Impact
Assessment
(next
slides)
2. Probability
and
Impact
Matrix
(next
slides)
3. Risk
Data
Quality
Assessment
– assessment
is
a
technique
to
evaluate
the
degree
to
which
the
data
about
risks
is
useful
for
risk
management.
It
involves
examining
the
degree
to
which
the
risk
is
understood
and
the
accuracy,
quality,
reliability,
and
integrity
of
the
data
about
the
risk.
4. Risk
CategorizaJon
– risks
to
the
project
can
be
categorized
by
sources
of
risk
(e.g.,
using
the
RBS),
the
area
of
the
project
affected
(e.g.,
using
the
WBS),
or
other
useful
categories
(e.g.,
project
phase)
to
determine
the
areas
of
the
project
most
exposed
to
the
effects
of
uncertainty.
Risks
can
also
be
categorized
by
common
root
causes.
5. Risk
Urgency
Assessment
– risks
requiring
near-‐term
responses
may
be
considered
more
urgent
to
address.
Indicators
of
priority
may
include
probability
of
detecJng
the
risk,
Jme
to
affect
a
risk
response,
symptoms
and
warning
signs,
and
the
risk
raJng.
6. Expert
Judgment
Copyright@STEVBROS
Project
Mamagement
Fundamentals
22
25. Outputs
1. Project
Documents
Updates
– Risk
register
updates.
• As
new
informaJon
becomes
available
through
the
qualitaJve
risk
assessment,
the
risk
register
is
updated.
• Updates
to
the
risk
register
may
include
assessments
of
probability
and
impacts
for
each
risk,
risk
ranking
or
scores,
risk
urgency
informaJon
or
risk
categorizaJon,
and
a
watch
list
for
low
probability
risks
or
risks
requiring
further
analysis.
– AssumpJons
log
updates.
• As
new
informaJon
becomes
available
through
the
qualitaJve
risk
assessment,
assumpJons
could
change.
• The
assumpJons
log
needs
to
be
revisited
to
accommodate
this
new
informaJon.
AssumpJons
may
be
incorporated
into
the
project
scope
statement
or
in
a
separate
assumpJons
log.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
25
27. Inputs
1. Risk
Management
Plan
– provides
guidelines,
methods,
and
tools
to
be
used
in
quanJtaJve
risk
analysis.
2. Cost
Management
Plan
– provides
guidelines
on
establishing
and
managing
risk
reserves.
3. Schedule
Management
Plan
– plan
provides
guidelines
on
establishing
and
managing
risk
reserves.
4. Risk
Register
– register
is
used
as
a
reference
point
for
performing
quanJtaJve
risk
analysis.
5. Enterprise
Environmental
Factors
– include
industry
studies
of
similar
projects
by
risk
specialists,
and
risk
databases
that
may
be
available
from
industry
or
proprietary
sources.
6. OrganizaJonal
Process
Assets
– include
informaJon
from
prior,
similar
completed
projects.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
27
28. Tools
and
techniques
1. Data
Gathering
and
RepresentaJon
Techniques
– Such
as
interviewing,
probability
distribuJons
(PERT)
2. QuanJtaJve
Risk
Analysis
and
Modeling
Techniques
– Such
as
sensiJvity
analysis,
expected
monetary
value
analysis,
modeling
and
simulaJon
(next
slides)
3. Expert
Judgment
– Expert
judgment
also
comes
into
play
in
the
interpretaJon
of
the
data.
Experts
should
be
able
to
idenJfy
the
weaknesses
of
the
tools
as
well
as
their
strengths.
Experts
may
determine
when
a
specific
tool
may
or
may
not
be
more
appropriate
given
the
organizaJon’s
capabiliJes
and
culture.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
28
29. Decision
Tree
and
EMV
• EVM used with Decision Tree to choose between
many alternative which take into account the future
events
• Example:
[ ]∑ ×= (Impact)ty)(ProbabiliEVM
Example
Source:
Copyright@STEVBROS
Project
Mamagement
Fundamentals
29
30. SensiJvity
Analysis
• To determine which risks have the most potential impact to the project
• Changing one or more elements/variables and set other elements to its
baseline then see the impact.
• One typical display of sensitivity analysis is the tornado diagram
Copyright@STEVBROS
Project
Mamagement
Fundamentals
30
32. Outputs
1. Project
Documents
Updates
– ProbabilisJc
analysis
of
the
project:
EsJmates
are
made
of
potenJal
project
schedule
and
cost
outcomes
lisJng
the
possible
compleJon
dates
and
costs
with
their
associated
confidence
levels.
– Probability
of
achieving
cost
and
Jme
objecJves:
For
instance,
in
Figure
11-‐17,
the
likelihood
of
achieving
the
cost
esJmate
of
US$41
million
is
about
12%
– PrioriJzed
list
of
quanJfied
risks
– Trends
in
quanJtaJve
risk
analysis
results:
As
the
analysis
is
repeated,
a
trend
may
become
apparent
that
leads
to
conclusions
affecJng
risk
responses
Copyright@STEVBROS
Project
Mamagement
Fundamentals
32
34. Inputs
1. Risk
Management
Plan
– include
roles
and
responsibiliJes,
risk
analysis
definiJons,
Jming
for
reviews
(and
for
eliminaJng
risks
from
review),
and
risk
thresholds
for
low,
moderate,
and
high
risks.
Risk
thresholds
help
idenJfy
those
risks
for
which
specific
responses
are
needed.
2. Risk
Register
– refers
to
idenJfied
risks,
root
causes
of
risks,
lists
of
potenJal
responses,
risk
owners,
symptoms
and
warning
signs,
the
relaJve
raJng
or
priority
list
of
project
risks,
risks
requiring
responses
in
the
near
term,
risks
for
addiJonal
analysis
and
response,
trends
in
qualitaJve
analysis
results,
and
a
watch
list,
which
is
a
list
of
low-‐
priority
risks
within
the
risk
register.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
34
35. Tools
and
techniques
(1/3)
1.
Strategies
for
NegaJve
Risk
or
Threats:
– Avoid:
Eliminate
the
threat
enJrely,
isolate
project
objecJves
from
the
risk’s
impact.
– Transfer
(Deflect,
Allocate):
shiV
some
or
all
the
negaJve
impact
of
a
threat
to
a
third
party
– MiJgate:
implies
a
reducJon
in
the
probability
and/or
impact
of
an
adverse
risk
event
to
be
within
acceptable
threshold
limits
– Accept:
deal
with
the
risks,
project
management
plan
is
not
changed
Copyright@STEVBROS
Project
Mamagement
Fundamentals
35
36. Tools
and
techniques
(2/3)
2.
Strategies
for
PosiJve
Risks
or
OpportuniJes:
– Exploit:
seek
to
ensure
the
opportuniJes
definitely
happen
– Share:
allocate
some
or
all
of
the
ownership
of
the
opportunity
to
a
third
party
who
is
best
able
to
capture
the
opportunity
for
the
project
benefit.
– Enhance:
increase
the
probability
and/or
the
posiJve
impacts
of
an
opportunity.
– Accept:
not
acJvely
pursuing
an
opportunity
Copyright@STEVBROS
Project
Mamagement
Fundamentals
36
37. Tools
and
techniques(3/3)
3. ConJngent
Response
Strategies
– contain
events
that
trigger
the
conJngency
response,
such
as
missing
intermediate
milestones
or
gaining
higher
priority
with
a
supplier,
should
be
defined
and
tracked.
Risk
responses
idenJfied
using
this
technique
are
oVen
called
conJngency
plans
or
fallback
plans
and
include
idenJfied
triggering
events
that
set
the
plans
in
effect.
4. Expert
Judgment
– is
input
from
knowledgeable
parJes
pertaining
to
the
acJons
to
be
taken
on
a
specific
and
defined
risk.
ExperJse
may
be
provided
by
any
group
or
person
with
specialized
educaJon,
knowledge,
skill,
experience,
or
training
in
establishing
risk
responses.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
37
39. Outputs
(2/2)
• Project
Documents
Updates
– Update
to
risk
register
• Risk
owners
and
assigned
responsibiliJes;
• Agreed-‐upon
response
strategies;
• Specific
acJons
to
implement
the
chosen
response
strategy;
• Trigger
condiJons,
symptoms,
and
warning
signs
of
a
risk
occurrence;
• Budget
and
schedule
acJviJes
required
to
implement
the
chosen
responses;
• ConJngency
plans
and
triggers
that
call
for
their
execuJon;
• Fallback
plans
for
use
as
a
reacJon
to
a
risk
that
has
occurred
and
the
primary
response
proves
to
be
inadequate;
• Residual
risks
that
are
expected
to
remain
aVer
planned
responses
have
been
taken,
as
well
as
those
that
have
been
deliberately
accepted;
• Secondary
risks
that
arise
as
a
direct
outcome
of
implemenJng
a
risk
response;
and
• ConJngency
reserves
that
are
calculated
based
on
the
quanJtaJve
risk
analysis
of
the
project
and
the
organizaJon’s
risk
thresholds.
– Other
updates:
assumpJons
log
updates,
technical
documentaJon
updates,
change
requests
Copyright@STEVBROS
Project
Mamagement
Fundamentals
39
41. Inputs
1. Project
Management
Plan
– includes
the
risk
management
plan,
provides
guidance
for
risk
monitoring
and
controlling.
2. Risk
Register
– has
key
inputs
that
include
idenJfied
risks
and
risk
owners,
agreed-‐upon
risk
responses,
control
acJons
for
assessing
the
effecJveness
of
response
plans,
risk
responses,
specific
implementaJon
acJons,
symptoms
and
warning
signs
of
risk,
residual
and
secondary
risks,
a
watch
list
of
low-‐
priority
risks,
and
the
Jme
and
cost
conJngency
reserves
3. Work
Performance
Data
– deliverable
status,
schedule
progress,
and
costs
incurred
4. Work
Performance
Reports
– take
informaJon
from
performance
measurements
and
analyze
it
to
provide
project
work
performance
informaJon
including
variance
analysis,
earned
value
data,
and
forecasJng
data.
These
data
points
could
be
impacsul
in
controlling
performance
related
risks.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
41
42. Tools
and
techniques
1. Risk
Reassessment
– oVen
results
in
idenJficaJon
of
new
risks,
reassessment
of
current
risks,
and
the
closing
of
risks
that
are
outdated.
Risk
reassessments
should
be
regularly
scheduled
2. Risk
Audits
– examine
and
document
the
effecJveness
of
risk
responses
in
dealing
with
idenJfied
risks
and
their
root
causes,
as
well
as
the
effecJveness
of
the
risk
management
process.
3. Variance
and
Trend
Analysis
4. Technical
Performance
Measurement
– compares
technical
accomplishments
during
project
execuJon
to
the
schedule
of
technical
achievement.
Such
technical
performance
measures
may
include
weight,
transacJon
Jmes,
number
of
delivered
defects,
storage
capacity,
etc.
DeviaJon,
such
as
demonstraJng
more
or
less
funcJonality
than
planned
at
a
milestone,
can
help
to
forecast
the
degree
of
success
in
achieving
the
project’s
scope.
5. Reserve
Analysis
– compares
the
amount
of
the
conJngency
reserves
remaining
to
the
amount
of
risk
remaining
at
any
Jme
in
the
project
in
order
to
determine
if
the
remaining
reserve
is
adequate.
6. MeeJngs
Copyright@STEVBROS
Project
Mamagement
Fundamentals
42
43. Outputs
1. Work
Performance
InformaJon
2. Change
Requests
– ImplemenJng
conJngency
plans
or
workarounds
someJmes
results
in
a
change
request.
It
includes
recommended
correcJve
acJons,
recommended
prevenJve
acJons
3. Project
Management
Plan
Updates
4. Project
Documents
Updates
– outcomes
of
risk
reassessments,
risk
audits,
and
periodic
risk
reviews.
5. Actual
outcomes
of
the
project’s
risks
and
of
the
risk
responses
6. OrganizaJonal
Process
Assets
Updates
– include
templates
for
the
risk
management
plan,
including
the
probability
and
impact
matrix
and
risk
register;
risk
breakdown
structure;
and
lessons
learned
from
the
project
risk
management
acJviJes.
Copyright@STEVBROS
Project
Mamagement
Fundamentals
43
46. QuesJons
for
review
Copyright@STEVBROS
Project
Mamagement
Fundamentals
46
• You
did
the
good
job
at
this
chapter.
Please
complete
quesJons
for
review
before
moving
to
next
chapter.