this is the chapter 2 lecture note of risk management

1. Chapter 2
Planning for risk management and Risk
identification
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2. 2
Chapter outline
Project risk planning
Input, Tools and Techniques and output
Success factors for risk management plan
Project risk identification
Risk Identification techniques
Risk register

3. Discussion Q?????
1. What does it mean risk management planning &
Project Risk Planning for you? Do you think are
they similar or differ?
2. Why project managers wary for risk management
planning and its risk planning process ?
3. As a project manager, what is your rationale for
conducting Project Risk Planning ?
4. If you practice effective risk planning procedures,
what benefits will you get?

4. Risk management planning
 Risk management planning is the process of deciding how to
approach and plan the risk management activities for a
project where as Project Risk Planning is a process for
identifying how to carry out the activities of project risk
management.
 Project managers wary for risk management planning because it is
important to plan for the risk management processes that
follow to ensure that the
 level,
 type, and
 visibility of risk management are commensurate/appropriate/ with
both the risk and importance of the project to the organization.
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5. Cont’d
Implementation of the risk planning process lets
the manager to:
 solve the challenge by planning for potential
risks and
develop solutions that reduce the likelihood of
risk occurrence and
 mitigate the negative impact of the risks.
The risk planning process should result in
developing a feasible and efficient plan for
minimizing risk occurrence rate and
exploiting available opportunities.
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6. Benefits of project Risk planning
 If you practice effective risk planning procedures, you
gain the following benefits:
A. Saving both financial and non-financial resources.
B. Increasing the efficiency and stability of activities
and operations.
C. Reducing legal liability.
D. Protecting property and people involved in the
project from harm and injury.
E. Protecting and strengthening the reputation of
your organization and employees.
F. Increasing the likelihood of successful
implementation.
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7. Discussion Q?????
Assume you are a project manager of AAM
project & wants to prepare Risk Management
Planning:
1. Which types of Inputs should considered in
your Risk Management Planning?
2. Which Tools and Techniques essential for your
Risk Management Planning?
3. What Outputs are expected from your
Risk Management Planning?

8. Inputs
Project scopestatement
Cost managementplan
Schedulemanagement plan
Communications managementplan
Enterpriseenvironmental factors
Organizationalprocess assets
Tools & Techniques
Planning meetings and analysis
Outputs
Risk management plan

9. Outputs
Risk management plan
Methodology
Roles and responsibilities.
Budgeting
Timing.
Scoring and interpretation
Thresholds
Reporting formats
Tracking.
Risk categories.
Definitionsof risk probability and impact.
Probability and impact matrix
Revised stakeholders’tolerances.

10. Success factors for risk management plan
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12. RISK IDENTIFICATION
What is the role of Risk identification for your
project?
Who involves in Risk identification?
What Inputs should considered for your project
Risk Identification?
Which Tools and Techniques are required for
your project Risk Identification?
What Outputs are expected from your project
Risk Identification?

13.  Risk identification involves
 determining which risks might affect the project and
documenting their characteristics
 Participants in risk identification generally include the
following, as possible:
 project team,
 risk management team,
 subject matter experts from other parts of the
company,
 customers, end users,
 other project managers,
 stakeholders, and
 outside experts.
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RISK IDENTIFICATION

14. 1. Inputs to Risk Identification
1.Risk Management Plan
2.Activity Cost Estimates
3.Activity Duration Estimates
4.scope Baseline
5.stakeholder Register
6.schedule Management Plan
7.Quality Management Plan
8.Project Documents
9.Enterprise Environmental Factors
10.Organizational ProcessAssets
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15. 2. Tools and Techniques for Risk Identification
1. Documentation reviews
2. Information-gathering techniques.
3. Checklists.
4. AssumptionsAnalysis
5. Diagramming Techniques
6. Expert judgment
7. SWOTAnalysis
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16. 3. Outputs from Risk Identification
1.Risks.
 has a positive or negative effect on a project
objective.
2. Triggers.
 Triggers, sometimes called risk symptoms or
warning signs, are indications that a risk has
occurred or is about to occur.
 For example, failure to meet intermediate
milestones may be an early warning signal of an
impending schedule delay.
3. Inputs to other processes.
 Risk identification may identify a need for further
action in another area.
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17. Risk register
A Risk Register is a document you use to record:
 All of your organization's identified risks
 The likelihood and consequences of a risk occurring,
 The actions you are undertaking to reduce those risks and
 Who is responsible for managing them.
A Risk Register is useful as it enables you to
store all of your risk information in one, easily
accessible location.
specifies the ways your team commits to manage the
identified risks and who is responsible for doings.
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