1. The document provides 51 topics to remember for the Risk Management Professional (RMP) exam, covering risk management processes, techniques, and concepts.
2. Key areas covered include contingency planning, risk assessment methods like assumption testing and FMEA, risk scoring and ranking, project cost estimation including contingency reserves, and theories around human motivation and management.
3. The exam is expected to include situational questions, as well as questions on risk simulation techniques like Monte Carlo simulation.
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
PMP, PMBOK (R) 5th Edition,
CH: 11: Project Risk Management
--> Represents one of two biggest chapters, of the PMBOK
==> Too much useful, for the people who have concern in the project management field, & the risk management field as well
Project risk analysis methodology and how RiskyProject software can be used for quantitative project risk analysis.
For more information how to perform schedule risk analysis using RiskyProject software please visit Intaver Institute web site: http://www.intaver.com.
About Intaver Institute.
Intaver Institute Inc. develops project risk management and project risk analysis software. Intaver's flagship product is RiskyProject: project risk management software. RiskyProject integrates with Microsoft Project, Oracle Primavera, other project management software or can run standalone. RiskyProject comes in three configurations: RiskyProject Lite, RiskyProject Professional, and RiskyProject Enterprise.
In this presentation we look at approach of analyzing risks, we get into details of qualitative risk analysis and quantitative risk analysis. This presentation will help professionals who are preparing for PMP certification exam
Plan Risk Responses is the process of developing options, selecting strategies, and agreeing on actions to address overall project risk exposure, as well as to treat individual project risks
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.
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
PMP, PMBOK (R) 5th Edition,
CH: 11: Project Risk Management
--> Represents one of two biggest chapters, of the PMBOK
==> Too much useful, for the people who have concern in the project management field, & the risk management field as well
Project risk analysis methodology and how RiskyProject software can be used for quantitative project risk analysis.
For more information how to perform schedule risk analysis using RiskyProject software please visit Intaver Institute web site: http://www.intaver.com.
About Intaver Institute.
Intaver Institute Inc. develops project risk management and project risk analysis software. Intaver's flagship product is RiskyProject: project risk management software. RiskyProject integrates with Microsoft Project, Oracle Primavera, other project management software or can run standalone. RiskyProject comes in three configurations: RiskyProject Lite, RiskyProject Professional, and RiskyProject Enterprise.
In this presentation we look at approach of analyzing risks, we get into details of qualitative risk analysis and quantitative risk analysis. This presentation will help professionals who are preparing for PMP certification exam
Plan Risk Responses is the process of developing options, selecting strategies, and agreeing on actions to address overall project risk exposure, as well as to treat individual project risks
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.
If a project manager is consumed with managing risk, there is little time to manage opportunities. Good risk management is not about fear of failure, it is about removing barriers to success. This is when opportunity management emerges.
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 ...
The presentation about Project Risk Management conducted by Mr. Mohamad Boukhari for the project management community in Lebanon during PMI Lebanon Chapter monthly lecture.
With uncertainty comes opportunity. But if a project manager is consumed with managing the risks, there is little time to manage the opportunities. Good risk management is not about fear of failure; it is about removing barriers to success. This is when opportunity management emerges.
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.
Building a risk tolerant integrated master scheduleGlen Alleman
Traditional approaches to planning, scheduling, and managing technical performance are not adequate to defend against these disruptions. This paper outlines the six steps for building a risk-tolerant schedule, using a field-proven approach.
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.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
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.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Ranga's 51 hot topics to remember for Risk Management Professional (RMP) exam
1. Prepared by Rangarajan Ramaswamy, PMP, PMI-SP, PMI-RMP Page 1 of 5
RANGA’S 51 HOT TOPICS TO
REMEMBER FOR
RISK MANAGEMENT
PROFESSIONAL (RMP) EXAM
1. A contingency plan is a planned action to be taken if a threat or an opportunity happens. A fallback
plan is implemented if the contingency plan is not effective or fails. A secondary risk
is associated with risks pertaining to risk response. A workaround is an immediate fix needed if an
unidentified or unanticipated risk occurs during execution stage.
2. A Pre-mortem is the process of "evaluating" a project before it has actually been done, to identify
potential risks on the project.
3. Assumption testing is done during Perform Qualitative Risk Assessment process. In assumption
testing, the stability and consequence are rated from 1 to 10. A stability rating of 5 to 10 means the
assumption is valid and a consequence rating of 5 to 10 means the assumption could have large
impact on the project.
4. It is important to analyze assumptions made when determining risk to uncover the consequences if the
assumptions are false.
5. Mutual exclusivity in decision tree model - Two events are called mutually exclusive if both cannot
occur in a single trial. Example: Flipping a coin will always give only 1 result (Head or Tail).
6. FMEA (Failure Mode Effect Analysis) is used to identify potential causes of product failure,
determine the effects, and identify actions to mitigate the failures.
7. Risk rating is something between 1 – 10. Risk Score is calculated as P*I. Comparing the risk scores
of risks in the project results in the Risk Ranking within the project.
8. Residual risks are risks that have been passively accepted, or for which contingency plans have been
created. It is important that management be informed of risks that have been passively accepted, as
well as the risks for which contingency and fallback plans have been created.
9. Residual risks are those risks that remain after Plan Risk Response process.
10. Project Cost breakdown is as follows:-
a. Work package estimate = Summation of activity estimate
b. Control account estimate = Summation of work packages estimate
c. Project estimate = Summation of Control accounts estimate
d. Cost baseline = Project estimate + Contingency reserve
e. Cost budget = Cost baseline + Management reserve
11. Management reserve is usually a percentage of the total project cost. The contingency reserve is the
expected monetary value (EMV) of the risks.
2. RANGA’S 51 HOT TOPICS TO REMEMBER FOR
RISK MANAGEMENT PROFESSIONAL (RMP) EXAM
Prepared by Rangarajan Ramaswamy, PMP, PMI-SP, PMI-RMP Page 2 of 5
12. Monte Carlo simulation is used to determine time and cost based on probability distribution.
13. Project Manager holds the Primary responsibility of identifying risk.
14. All the Risks for which PM and team has no control over, management should be involved.
15. The team is more confident and optimistic about the project during the Plan Risk Response process.
16. Meetings should not be required before the approved fallback or contingency plan is implemented.
17. PM should spend most of the time preparing contingency plans.
18. The highest-risk path is the path through the network diagram that has the highest risk score. The
activities on this path may not immediately follow each other, as activities do on the critical path.
19. Exploiting an opportunity means increasing its probability. Enhancing an opportunity means
increasing its impact.
20. The ultimate outcome of the risk ranking process is that the non-top risks are separated from the top
risks, so that the top risks can be moved forward.
21. The risk reserve report keeps a running balance of the remaining reserve, and is used like a
checkbook.
22. Path convergence is best described as many activities leading into a central activity. This adds risk to
that central activity.
23. Perform qualitative risk analysis is subjective evaluation.
24. Perform quantitative risk analysis is objective evaluation.
25. The team needs to understand the risk tolerance areas for the project to know the acceptable level of
risk and, therefore, which risks need to be addressed.
26. Stakeholder risk tolerance is identified during the Plan Risk Management process.
27. When an identified risk arises, it is not necessary to hold a meeting, and the risk response plan does
not require review. Of course, since the risk has occurred, it was not avoided.
28. It is the responsibility of risk governance board to ensure the project is following the standard policies
during all processes.
29. Risk management "metrics" are used to measure how the project risk management team is performing
against the plan.
30. Purpose of risk audit is to determine the effectiveness of risk management team.
31. Project charter and WBS helps prevent re-work, wasted time & effort.
32. While calculating worst case scenarios simply neglect the probability and add the negative impacts.
Similarly, for calculating best case scenarios neglect the probability and add the positive impacts.
3. RANGA’S 51 HOT TOPICS TO REMEMBER FOR
RISK MANAGEMENT PROFESSIONAL (RMP) EXAM
Prepared by Rangarajan Ramaswamy, PMP, PMI-SP, PMI-RMP Page 3 of 5
33. Prompt lists are used to help ensure that all aspects are covered during risk identification. A prompt
list categorizes risks into types or areas and is usually specific to a project type and an organization’s
function (e.g. legal, commercial, technical, design, construction, testing etc.)
34. Many workarounds on a project indicate that there was a lack of adequate project planning and the
project is likely in trouble.
35. Work Performance Data is raw data such as physical progress, start finish dates. Work Performance
Information is analysis of performance data such as change requests, forecasted estimates. Work
Performance Report is physical or electronic representation of Work Performance Information such
as status reports, memos, notes, dashboards.
36. Contingency reserves are associated with the “known-unknowns,” which may be estimated to account
for the unknown amount of rework.
37. List of formulae to be remembered :-
a. No. of communication channels N = n(n-1)/2 (where n is no of stakeholders)
b. Duration or cost for triangular distribution E= (O + M + P)/3
c. Duration or cost for Beta distribution (traditional PERT) E= (O + 4M + P)/6
d. CV = EV - AC
e. SV = EV - PV
f. CPI = EV/AC
g. SPI = EV/PV
h. EAC forecast for work performed at the budgeted rate: EAC = AC + (BAC – EV)
i. EAC forecast for work performed at the present rate CPI : EAC = BAC / CPI
j. EAC forecast for ETC work considering both SPI and CPI factors:
EAC = AC + [(BAC – EV) / (CPI X SPI)]
k. TCPI based on the BAC: (BAC – EV) / (BAC – AC)
l. TCPI based on the EAC: (BAC – EV) / (EAC – AC).
m. In short TCPI = work remaining/funds remaining
n. Variance at completion VAC = BAC – EAC
o. Activity standard deviation is (P-O)/6
p. Activity variance is square of standard deviation = [(P-O)/6]2
38. Projects with TCPI > 1 is harder to complete and TCPI < 1 is easier to complete.
39. CPI>1(Under Budget) ,CPI=1(At budget) , CPI<1 (Over Budget)
40. SPI>1(Ahead of plan) , SPI=1(As planned) , SPI<1 (Behind Plan)
41. In repetitive processes, the control limits are generally set at ±3 sigma around a process mean that has
been set at 0 sigma. A process is considered out of control when: (1) a data point exceeds a control
limit; (2) seven consecutive plot points are above the mean; or (3) seven consecutive plot points are
below the mean.
42. Non-critical risks are maintained in Watchlist and revisited periodically (mostly during execution and
M&C).
43. Expectancy Theory - Employees who believe that their efforts will lead to effective performance
and who expect to be rewarded for their accomplishments will remain productive as rewards meet
their expectations.
4. RANGA’S 51 HOT TOPICS TO REMEMBER FOR
RISK MANAGEMENT PROFESSIONAL (RMP) EXAM
Prepared by Rangarajan Ramaswamy, PMP, PMI-SP, PMI-RMP Page 4 of 5
44. Perquisites (Perks) - Some employees receive special rewards, such as assigned parking
spaces, corner offices, and executive dining.
45. Fringe Benefits- These are the "standard" benefits formally given to all employees, such as education
benefits, insurance, profit sharing etc.
46. McGregor's Theory of X and Y–
a. Theory X- Managers who accept this theory believe that people need to be watched
every minute. They believe employees are incapable, avoid responsibility, and avoid
work whenever possible.
b. Theory Y- Managers who accept this theory believe that people are willing to work
without supervision, and want to achieve. They believe employees can direct their own
efforts.
47. Maslow's Hierarchy of Needs – represents a pyramid that shows how people are motivated and states
that one cannot ascend to the next top level until the levels below are fulfilled.
Top level: Self-actualization – Self-fulfillment, growth, learning
Esteem: - Accomplishment, respect, attention, appreciation
Social - Love, affection, approval, friends, association
Safety – Security, stability, freedom from harm
Base level: Physiological – Need for air, water, food, housing, clothing
48. David McClelland's Theory of Needs (or Acquired Needs Theory) states that a person falling into one
category would be managed differently than a person falling into another category. The categories
are:-
a. Achievement - These people should be given projects that are challenging but are
reachable. (Recognition)
b. Affiliation - These people work best when cooperating with others. They seek approval
rather than recognition.
c. Power - People whose need for power is socially oriented, these people like to organize
and influence others.
49. Herzberg's Theory deals with hygiene factors and motivating agents. Poor hygiene factors may
demotivate, but improving them, under most circumstances, will not improve motivation.
a. Examples of hygiene factors are:
i. Working conditions
ii. Salary
iii. Personal life
iv. Relationships at work
v. Security
vi. Status
b. Motivating Agents What motivates people is the work itself, including such things as:
i. Responsibility
ii. Self-actualization
iii. Professional growth
iv. Recognition
50. Neuro-linguistic programming (NLP) is an approach to communication, personal development, and
psychotherapy. The first stage being the act of establishing and maintaining rapport between the
practitioner and the client which is achieved through pacing and leading the verbal (e.g., sensory
5. RANGA’S 51 HOT TOPICS TO REMEMBER FOR
RISK MANAGEMENT PROFESSIONAL (RMP) EXAM
Prepared by Rangarajan Ramaswamy, PMP, PMI-SP, PMI-RMP Page 5 of 5
predicates and keywords) and non-verbal behavior (e.g., matching and mirroring non-verbal behavior,
or responding to eye movements) of the client.
51. Correlation coefficient is a measure that determines the degree to which two variable's movements are
associated, giving a value between +1 and −1 inclusive, where 1 is total positive correlation, 0 is no
correlation, and −1 is total negative correlation.
What to expect in the exam?
1. Around 30% of questions related to above mentioned points.
2. Around 50% of situation based questions (You are the Risk manager of a company etc.)
3. Around 10% of questions related to Monte Carlo simulation. Simulation result will be displayed
and asked to calculate project average budget, P50, P80 etc.
4. Around 5% of questions are like what to do if the risks are not identified in the risk register.
5. Remaining 5% of questions related to Probability, confidence and stability level. Questions based
on when to use contingency reserve and when to use management reserve. Questions on Risk
averse and Risk seeking managers. Questions on different types of simulations MCS and LHS
(Monte Carlo sampling and Latin hypercube sampling ) etc.
References:-
1. Rita Mulcahy’s Risk Management
2. Rita Mulcahy’s PMP Exam Prep
3. PMBOK 5th
Edition
4. Investopedia.com
5. Wikipedia.org
xxx---My wishes and good luck for your exam---xxx
I would love to receive your feedback and you can reach me through LinkedIn at
http://qa.linkedin.com/in/rangarajanramaswamy/