سلسلة محاضرات إدارة المشاريع المقدمة من مؤسسة علماء مصر http://www.egyptscholars.org/pm

1. Project Management
Fifth Session
Egypt Scholars
Presented by
Mohamed Khalifa Hassan
Jan 2014
© Mohamed Khalifa, 2014 All Rights Reserved 30

2. 6. 1 Defining risk management
6.2 Benefits of risk management in project
management
6.3 Risk management processes and tools
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6. Risk Management

3. – Risk has three components:
• An event
• Probability of the occurrence of the event
• Impact of that event (or the amount at stake)
– Can risk be positive as well as negative?
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6. 1 Defining risk management

4. “Project Risk Management includes the processes
of conducting risk management planning,
identification, analysis, response planning, and
monitoring and control on a project. The
objectives of Project Risk Management are to
increase the probability and impact of positive
events, and decrease the probability and impact of
negative events in the project.”
PMBOK® Guide – Fourth Edition, p. 273
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6. 1 Defining risk management

5. • Supporting strategic and business planning;
• Supporting effective use of resources;
• Promoting continuous improvement;
• Fewer shocks and unwelcome surprises;
• Quick grasp of new opportunities;
• Enhancing communication between Schools and
Departments;
• Enhance other project management processes.
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6.2 Benefits of risk management in project
management

6. •The project risk management processes
include:
5.3.1 Identify Risks
5.3.2 Perform Qualitative Risk Analysis
5.3.3 Plan Risk Responses
5.3.4 Monitor and Control Risks
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6.3 Risk management processes and tools

7. 36
Identify Risks is the process of determining which risks may affect the project
and documenting their characteristics.
© Mohamed Khalifa, 2014 All Rights Reserved
6.3 Risk management processes and tools
5.3.1 Identify Project Risks

8. Documentation reviews:
– Structured reviews of project plans and related documents at both the total project and
detailed scope levels.
Information gathering techniques :
– Data collection methods that the project team can use to assist in identifying risks.
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Technique Description
Brainstorming
Used to identify overall project risks or may focus in on the risks
within a particular project segment or work package.
Delphi technique
Generates a consensus among project risk experts who
anonymously submit their risk list to a facilitator.
Interviewing
Used to get information from people with a wide experience across
many projects.
Root cause identification Used to find and group the risks by cause.
Strengths, weaknesses,
opportunities, and threats
(SWOT) analysis
Examines the project from the perspective of strengths,
weaknesses, opportunities, and threats.
© Mohamed Khalifa, 2014 All Rights Reserved
6.3 Risk management processes and tools

9. • Risk register
– The risk register ultimately contains the outcomes of the other risk
management processes as they are conducted, the preparation of the
risk register begins in the Risk Identification process with the following
information, and then becomes available to other project
management and Project Risk Management processes.
• List of identified risks.
• List of potential responses.
• Root cause of risk.
• Updated risk categories.
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6.3 Risk management processes and tools

10. 39
5.3.2 Perform Qualitative Risk Analysis
In this process you will rank and prioritize project risks according to their potential
effect on project objectives.
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6.3 Risk management processes and tools

11. Probability and impact matrix:
– Illustrates a risk rating assignment
for identified risks.
– A probability/ impact risk rating
matrix is the assignment of a risk
rating to risks or conditions. The
matrix combines the probability
and impact scales to prioritize risks
and identify risks that are likely to
require further analysis
The risk rating =
risk’s impact score X probability score.
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6.3 Risk management processes and tools

12. 41
6.3.3 Plan Risk Response
.
Risk response planning is the process of examining each risk corresponding response
alternatives, determining which response will improve the likelihood of a positive
outcome.
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6.3 Risk management processes and tools

13. The common strategies for threats are:
• Avoid (Risk Avoidance).
• Transfer (Risk transference) .
• Mitigate Risk (Mitigation).
• Contingency
– Contingency Reserve
– Contingency Plan
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6.3 Risk management processes and tools

14. The common strategies for opportunities are:
• Exploit (Risk exploitation)
• Share (Risk sharing)
• Enhance (Risk enhancement – Influence the Impact)
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6.3 Risk management processes and tools

15. Risk Response Plan
– Detailed actions
– Identify risks with ownerships
– Results of Qualitative and Quantitative analysis.
– Agreed-upon responses
– Residual risk & specific actions
– Symptoms and warning sign of risks’ occurrence.
– Budget and time of responses.
– Contingency plans
– Fallback plans (in case of Contingency plans are ineffective)
– Residual risks : After implementing any of the risk response strategies,
residual risk is leftover.
– Secondary risks: Risks that come about as a result of implementing a risk
response
Risk-related contractual:
– Insurance, partnerships, and risk sharing parties will generate language that
specifies each party’s responsibility for different risks.
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6.3 Risk management processes and tools

16. 45
5.3.4 Monitor and Control Risks
Risk Monitoring and control is the process of responding to identified and unforeseen
risks. It involves tracking identified risks , identifying new risks, implement risk response
plans, and monitoring their effectiveness.
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6.3 Risk management processes and tools

17. Q & A
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