Risk management profesional presentation

I N T R O D U C E D B Y
PROF. KARIM EL-DASH
P H D ; P M P ; R M P ; C C E ; A V S
RISK MANAGEMENT PROFESSIONAL
PMI-RMP®
06/10 - 10/10 /2012
1
Prof. Karim El-Dash www.projacs.com

PMP Eligibility /Requirements
Educational
Background
Project Risk Management
Experience
Project Risk
Management
Education
High school
diploma, associate’s
degree or global
equivalent
4,500 hours experience within
the last five years
40 contact hours of formal
education
Bachelor’s degree
or global equivalent
3,000 hours experience within
the last five years
30 contact hours of formal
education
06/10 -
10/10
/2012
2

PMP Eligibility /Requirements
Exam 170 questions
Time 3.5 hours
Fees CBT USD 520/ 670
Fees PBT USD 415/ 565
06/10 -
10/10
/2012
3

Human Resources
Risk
Project Management
Cost
Time Quality
Procurement Communication
4
06/10 - 10/10 /2012Prof. Karim El-Dash www.projacs.com

Definition of a Project
5
Any work that:
1. Has a temporary endeavor with a beginning and an
end.
Start Process Finish

Definition of a Project
6
2. Creates a unique product ,
service or result.

What Is Project Management?
7
Project Management
is the application of
knowledge, skills,
tools, and techniques
to project activities to
meet project
requirements.

Projects & Products
8

Role of a Project Manager
9

Enterprise Environmental Factors
10

Organizational Process Assets
11
OPA
Manuals
Procedures
Templates
Guidelines
Policies
Lessons
Learned
Historical
Info

Project Life Cycle
12

Cost & staffing levels across PLC
06/10 - 10/10 /2012
13
Time
Start the
project
Organizing &
preparing
Carrying out work Closing the
project
Project
Charter
Project Management
Plan
Accepted
deliverables
Archived
project
documents

Impact of variables based on project time
14
cost
Influence / risk
Time

Project Governance Across the Life Cycle
15
 Project governance
provides a
comprehensive,
consistent method of
controlling the project
 It should be described in
the project plan
 It must fit within the
context of the program or
performing organization

Stakeholders
16
 A stakeholders are persons and
organizations that are actively
involved in the project, or whose
interests may be affected as a result
of project performance or project
completion.
 +ve & -ve stakeholders

17 06/10 - 10/10 /2012Prof. Karim El-Dash www.projacs.com

Functional Organization
18
CEO
Technical
Manager
Ahmad
Maram
Abdullah
Contract
Manager
Aly
Marwa
Abdulaziz
Finance
Manager
Adam
Manal
Abdussalam

Projectized Organization
19
CEO
PM
Jamal
Ahmad
Maram
Abdullah
PM
Jone
Aly
Marwa
Abdulaziz
PM
Joda
Adam
Manal
Abdussalam

Project Management Process Groups
20
1. Initiating
2. Planning
3. Executing
4. Monitoring & controlling
5. Closing

Process Groups Interact in a Phase or Project
21
Time
Initiating Planning Executing Monitoring &
Controlling
Closing

Project Management Process Group Triangle
22
Executi
ngproce
sses
Closing
process
es
Plannin
g
process
es
Initiatin
g
process
es
Monitoring & controlling processes
Executi
ngproce
sses
Closing
process
es
Plannin
g
process
es
Initiatin
g
process
es
Executi
ngproce
sses
Closing
process
es
Plannin
g
process
es
Initiatin
g
process
es
Executi
ngproce
sses
Closing
process
es
Plannin
g
process
es
Initiatin
g
process
es
Phase 1 Phase 2 Phase 3 Phase 4
Project Life Cycle
Executi
ngproce
sses
Closing
process
es
Plannin
g
process
es
Initiatin
g
process
es

Project Charter
23
1. Project authorization
2. PM authorization

Project Scope Statement
Includes:
 Product scope description.
 Product acceptance criteria.
 Project deliverables.
 Project exclusions
 Project constraints
 Project assumptions.
24

Sample WBS
06/10 - 10/10 /2012
25

Decomposition - 100% Rule
26

WBS vs. OBS
27

Schedule Management Plan
 Approach
 Milestone
 Critical activities
 Responsibilities
 Prioritization
 Analyzing
 Documentation
 Change process
28

 Is a form of progressive
elaboration planning.
 Work to be accomplished in the
near term is planned in detail at a
low level of the WBS
 Work far in the future is planned
for WBS components that are at a
relatively high level of the WBS.
Rolling Wave Planning
29

Dependencies
 Mandatory dependency
inherent in the nature of
the work being done /
contractually required
(hard logic)
 Discretionary
dependency determined by
project team (soft logic)
 External
30

Cost Management Plan
 Level of accuracy
 Units of measure
 Organizational
procedures links (ex.
control account, CA)
 Control thresholds
 Rules of performance
measurement (EVM)
 Reporting formats
 Process descriptions
31

Estimate Activity Resources
 Activity resource requirements
 Resource breakdown structure (RBS)
 Project documents update:
 Activity list
 Activity attributes
 Resource calendar
32

Estimate Activity Duration
 Tools
 Expert judgment:
 Analogous estimating
 Parametric estimating
 3-point estimate
 Reserve analysis
33

 Tools
 Expert judgment
 Analogous estimating: also
called top-down estimating, means
using the actual duration of a
previous, similar activity as the
basis for estimating the duration of
a future activity based on specific
parameters like duration, budget,
size, weight
34

 Tools
 Expert judgment
uses statistical relationship between
historical data and other variables
to estimate for activities, such as
multiplying quantity of work by
productivity rate
35

 Tools
 Expert judgment
Optimistic, most likely, pessimistic
and
6
4 pMo
E
ttt
t


6
op tt
t


36

PERT
37

Estimate Cost
• Activity Cost Estimates
• Bases of estimates
 how it was developed
 assumptions
 constraints
 range of possible estimates
(±15%, 8-10)
 Confidence level
• Project document updates
38

Schedule Compression
1- Crashing
2- Fast tracking
39

Crashing
40

Fast Tracking
41

Variable & Fixed Costs
 Variable Costs that change
with the amount of
production.
 Fixed Costs that do not
change as production
changes.
42

Direct and Indirect Cost
Indirect costs are the necessary costs of doing business that
cannot be related to a particular activity and in some cases
cannot be related to a specific project.
 general overhead
 project overhead.
43

Quality Management Plan
 Quality implementation
 Quality assurance
 Quality control
 Continuous improvement
44

Project Quality Management
Precision is
consistency that the
value of repeated
measurements are
clustered and have
little scatter
Accuracy is
correctness that the
measured value is
very close to the true
value
45

Plan Quality
Cost-Benefit Analysis
 less rework
 higher productivity
 lower costs
 increased satisfaction
46

Cost of Quality (COQ)
Quality costs are:
 Conformance =
prevention + appraisal
 Non-conformance =
internal + external
47

Force Field Analysis
48

Communication
49

Communication Management Plan
 Stakeholder requirements
 Information, format, content, and level of
detail
 Reasons
 Time frame
 Responsible person
 Who will receive the information
 Technologies used
 Escalation process
 Updating communications management
plan
 Constraints
50

Project Communication Plan (sample)
51
06/10 - 10/10 /2012
What Who/Target Purpose When/Frequency Type/Method(s)
Initiation
Meeting
All
stakeholders*
Gather information
for Initiation Plan
FIRST
Before Project
Start Date
Meeting
Distribute
Project
Initiation Plan
All
stakeholders*
Distribute Plan to
alert stakeholders
of project scope
and to gain buy in.
Before Kick Off
Meeting
Before Project
Start Date
Document distributed via
hardcopy or electronically.
May be posted on project
website or OIT
Blackboard site.
Project Kick
Off
All
stakeholders*
Communicate
plans and
stakeholder
roles/responsibilitie
s.
At or near
Project Start
Date
Meeting
Status
Reports
All
stakeholders
and Project
Office
Update
stakeholders on
progress of the
project.
Regularly
Scheduled.
Distribute electronically
and post via web/OIT
Blackboard site.

Communication Skills
52

Power / Interest Grid for Stakeholder Prioritization
06/10 - 10/10 /2012
53
Key Players
(Manage Closely)
Important Players
(Keep Satisfied)
Affected Players
(Keep Informed)
Other Players
(Monitor)
HighLow
High
Low
Interest
Power

Communication Technology
 Urgency of the need for
information
 Availability of technology
 Expected project staffing
 Duration of the project
 Project environment
54

Communication Methods
55
1. Interactive communication; meeting
2. Push communication; letter
3. Pull communication; e-learning

Execution & Control
Processes
56

Work Performance Information
57

Distribute Information
 Sender-receiver model
 Choice of media
 Writing styles
 Meeting management
techniques
 Presentation techniques
 Facilitation techniques
58

Performance Report
 Analysis of past performance
 Current status of risks and issues
 Work completed
 Work to be completed
 Summary of changes
 Results of variance analysis
 Forecast project completion
59

Report Performance (T&T)
 Variance analysis
 Forecasting methods
 Communication
methods
 Reporting systems
60

Cost Performance Baseline
 It is an authorized time-
phased budget at completion
(BAC) that is used as a basis
against which to measure,
monitor, and control overall
cost performance on the
project.
61

Cost Baseline
62

Performance Measurement
 Cost Variance (CV)
CV = EV – AC
 Cost Performance Index (CPI)
CPI = EV / AC
 Schedule Variance (SV)
SV = EV – PV
 Schedule Performance Index (SPI)
SPI = EV / PV
63

Earned Value
06/10 - 10/10 /2012
64

Earned Value
06/10 - 10/10 /2012
65

Earned Value Analysis
66

Forecast Estimate
1. EAC = AC + ETC
2. EAC = AC + BAC – EV
ETC = (BAC-EV)
3. EAC = (AC + (BAC – EV)/CPI)
ETC = (BAC-EV) / CPI
67

To-Complete Performance Index (TCPI)
68
ACBAC
EVBAC
TCPI



ACEAC
EVBAC
TCPI




Perform Quality Assurance
Is the process of auditing
the quality requirements
and the results from quality
control measurements to
ensure appropriate quality
standards and operational
definitions are used
69

Perform Quality Assurance
Quality audit
 Is a structured, independent review to determine
whether project activities comply with
organizational and project policies, processes, and
procedures
70

Develop Project Team
71

HR Management Information System
72

Team Development
 Observation and Conversation
 Project Performance
Appraisals
 Formal or informal
 360 degree
 Conflict Management
 Withdrawing / smoothing /
compromising / forcing /
collaborating / confronting
 Issue Log
 Interpersonal skills
73

Team Performance Assessment
74
06/10 - 10/10 /2012
Behaviors/Process Measures Results Measures
Individual Level:
An employee’s
contribution to the
team
Whether or how well the
employee: cooperates with team
members, communicates ideas
during meetings, participates in
the team’s decision-making
processes.
The quality of the written report,
the turnaround time for the
individual’s product, the accuracy
of the advice supplied to the team,
the status of the employee’s case
backlog.
Team Level:
The team’s
performance
Whether or how well the team:
runs effective meetings,
communicates well as a group;
allows all opinions to be heard,
comes to consensus on decisions.
The customer satisfaction rate
with the team’s product, the
percent decline of the case
backlog, the cycle time for the
team’s entire work process.

Decision Making
 Problem definition
 Problem solutions
generation
 Evaluation criteria
 Solution action planning
 Solution evaluation
planning
 Evaluation of outcome
75

76
PROJECT RISK MANAGEMENT

 Planning,
 identification,
 analysis (qualitative + quantitative),
 responses, and
 monitoring and control on a project
77

 Objectives are to:
 increase the probability and impact of
positive events, and
decrease the probability and impact of
events adverse to the project
78

Project Risk
 Project risk is an uncertain
event or condition that, if
it occurs, has an effect on a
project objective.
 Objective : Scope / time /
cost / quality
 A risk has a cause or more
and, if it occurs, an impact
or more.
79

Known & Unknown
 Known risks are those that
have been identified and
analyzed
 Unknown risks cannot be
managed, may be addressed by
contingency plan
80

Project Risk Management Processes
81

Plan Risk Management
11-1
1. Project scope statement
2. Cost management plan
3. Schedule management plan
4. Communications
management plan
5. Enterprise environmental
factors
6. Organizational process
assets
Inputs
1. Planning meetings & analysis
Tools & Techniques
1. Risk management plan
Outputs

Plan Risk Management (T&T)
Planning Meetings & Analysis
 Project manager
 Selected team members and stakeholders
 Anyone with responsibility to manage the risk
planning and execution activities
83

Risk Management Plan
 Methodology
 Roles and responsibilities
 Budgeting
 Timing
 Categories
 Probability & Impact
 A relative scale “very unlikely” to “almost certainty” could be
used.
 Numerical probabilities on a general scale (e.g., 0.1, 0.3, 0.5,
0.7, 0.9)
84

85 06/10 - 10/10 /2012
Risk Responsibility Chart
Top
management
PM
Management
Team
Risk Owner
Plan Risk Management X X X
Identify Risk X X
Perform Qualitative
Risk Management
X X X
Perform Qualitative
Risk Management
X X X
Plan Risk Responses X X X
Monitor & Control Risks X X X

Risk Breakdown Structure (RBS)
Project
OrganizationalProject
Management
Technical External Others
Time
Cost
Resource
Quality
Performance
Complexity
Objectives
Fund
Collaboration
Weather
Labor
Politics
06/10 - 10/10 /2012
86

Likelihood Expectations
87
06/10 - 10/10 /2012
Level Likelihood Expected or actual frequency experienced
1 Rare
May only occur in exceptional circumstances; simple process; no
previous incidence of non-compliance
2 Unlikely
Could occur at some time; less than 25% chance of occurring; noncomplex
process &/or existence of checks and balances
3 Possible
Might occur at some time; 25 –50% chance of occurring; previous
audits/reports indicate non-compliance; complex process with extensive
checks & balances; impacting factors outside control of organization
4 Likely
Will probably occur in most circumstances; 50-75% chance of
occurring; complex process with some checks & balances; impacting
factors outside control of organization
5 Almost certain
Can be expected to occur in most circumstances; more than 75%
chance of occurring; complex process with minimal checks & balances;
impacting factors outside control of organization

Impact Scale
88
06/10 - 10/10 /2012
Relative or numerical scales
Objective
Very low /
0.05
Low / 0.10
Moderate /
0.20
High / 0.40
Very
High /
0.80
Cost
Insignificant
increase
<10%
increase
10-20%
increase
20-40% increase
>40%
increase
Time
Insignificant
increase
<5% increase
5-10%
increase
10-20% increase
>20%
increase
Scope
Barely
noticed
change
Minor change
Major
change
Unacceptable by
sponsor
Product
is
useless
Quality
Barely
noticed
Applications
affected
Sponsor
approval
required
Unacceptable by
sponsor
Product
is
useless

89 06/10 - 10/10 /2012
Stakeholder Tolerance Matrix
Stakeholder Requirements
Tolerances
Time Cost Quality
PM
Deliver product as
requested
More than
10% Phase
II
More than
5% Phase II
Conformance
to all specs
Technical
Manager
Passing all QC
criteria
More than
20% Phase
II
More than
10% Phase
II
Conformance
to all
limitations
Marketing
Manager
Verify profits
More than
5% Phase
II
More than
2% Phase
II
Customer
acceptance
IT Manager
Customer
satisfaction
(internal & external)
More than
20% Phase
II
More than
5% Phase II
Positive
feedback

Risk Matrix
90
06/10 - 10/10 /2012
Consequences
Likelihood Insignificant Minor Moderate Major Extreme
Rare Low Low Low Low Low
Unlikely Low Low Low Medium Medium
Possible Low Low Medium Medium Medium
Likely Low Medium Medium High High
Almost
certain
Low Medium Medium High Extreme

Risk Management Plan
 Stakeholder tolerance
 Reporting format
 Tracking
91

Identify Risks
11-2
2. Activity cost estimates
3. Activity duration estimates
4. Scope baseline
5. Stakeholder register
8. Quality management plan
9. Project documents
10. Enterprise environmental
factors
assets
Inputs
1. Documentation reviews
2. Information gathering
techniques
3. Checklist analysis
4. Diagramming techniques
5. SWOT analysis
6. Expert judgment
Tools & Techniques
1. Risk register
Outputs

Identify Risks (T&T)
1. Documentation reviews
2. Information-gathering techniques
 Brainstorming
 Delphi technique
 Interviewing
 Root cause identification
93

3. Checklists
4. Assumptions analysis
5. Diagramming techniques
 Cause-and-effect diagrams
 Flow charts.
 Influence diagrams
94

Cause and Effect Diagram
 Fishbone
 Ishikawa
95
Delay in
Project
ManagementMaterialsFunding
ScopeProductivityLabor

Flowchart
Organization
Assets
Project
Planning
Auditing
Quality
Control
Verification
Corrective
Action
06/10 - 10/10 /2012
96

Influence Diagram
Market
demand
Product
strategy
Product
verification
Customer
Satisfaction
06/10 - 10/10 /2012
97

6. SWOT Analysis
7. Expert judgment
98
06/10 - 10/10 /2012
PRO CON
Internal
Strength Weakness
External
Opportunity Threat

Identify Risks (output)
Risk register
 Identified risks
 Potential responses
99

Risk Register
100
06/10 - 10/10 /2012
Task Cause Risk Effect
Design Conflict Errors + Rework Delay
Procurement Single supplier Inappropriate delivery Delay / cost increase
Handing out Permit not ready No access Delay
Executing Technical problems Rework Delay / Cost increase
Verification Nonconformance Corrective action Quality / Cost/ Time

Perform Qualitative Risk Management
11-3
1. Risk register
3. Project scope statement
assets
Inputs
1. Risk probability & impact
assessment
2. Probability & impact matrix
3. Risk data quality assessment
4. Risk categorization
5. Risk urgency assessment
6. Expert judgment
Tools & Techniques
1. Risk register update
Outputs

Perform Qualitative Risk Management (T&T)
 Risk Probability and Impact Assessment
 Probability and Impact Matrix
 Data quality assessment
 Risk categorization
 Risk urgency
 Expert judgment
102

Probability – Impact Matrix
Impact
0.9 0.7 0.5 0.3 0.1
Probability
0.9 0.81 0.63 0.45 0.27 0.09
0.7 0.63 0.49 0.35 0.21 0.07
0.5 0.45 0.35 0.25 0.15 0.05
0.3 0.27 0.21 0.15 0.09 0.03
0.1 0.09 0.07 0.05 0.03 0.01
103

Probability – Impact Chart
High impact
High
probability
Low
probability
Low impact
104

Critical Events
105
06/10 - 10/10 /2012
High urgency Low urgency
High
severity
Low
severity

Risk Severity
106

Perform Qualitative Risk Management (outputs)
 Risk register updates
 Relative ranking
 Risks categorized
 Causes requiring particular attention
 List of risks for additional analysis
 Watch-lists of low-priority risks
 Trends in qualitative risk analysis results
107

Risk Register
108
06/10 - 10/10 /2012
Task Cause Risk Effect Probability Impact
Design Conflict
Errors +
Rework
Delay High High
Procurement Single supplier
Inappropriate
delivery
Delay / cost
increase
Medium Medium
Handing out Permit not ready No access Delay Medium High
Executing
Technical
problems
Rework
Delay /
Cost
increase
Low Medium
Verification Nonconformance
Corrective
action
Quality /
Cost/ Time
Low Medium

Perform Quantitative Risk Management
Numerically analyzes the effect of identified risk on
overall project objectives.
109

Perform Quantitative Risk Management
11-4
1. Risk register
assets
Inputs
1. Data gathering &
representation techniques
2. Quantitative risk analysis &
modeling techniques
3. Expert judgment
Tools & Techniques
Outputs

Perform Quantitative Risk Management (T&T)
 Data gathering & representation technique
 Interviewing
 Probability distribution
111

Three-Point Estimate
WBS
Element
Low Most Likely High
Design $2 $4 $7
Build $35 $45 $60
Verify $5 $7 $10
Total $42 $56 $77
112

Probability Distribution
Probability
Time / Cost
Beta
distribution
Optimistic Most
likely
Pessimistic
Triangular
distribution
Probability
Time / Cost
113

Probability Distribution
 Probability
 Likelihood of occurrence.
 Statistics
 Mean – Average of the values of events
 Mode – Value which occurs most often
 Median – Value in middle of the range of ordered values
 Variance
 Average of the squared deviations from the mean
 Standard deviation – Square Root of the Variance
 Range – Values between upper & lower limits
114

Statistical Description
Sample: 5,7,3,6,7,8,4,7,2 (2,3,4,5,6,7,7,7,8)
 Mean =
 Mode = 7
 Median = 6
 Range = 6
115
06/10 - 10/10 /2012
45.5
9
274876375



Normal Distribution CurveNormal Distribution Curve
 2 standard deviations (+/- 1 ) = 68.26 %
0-1-2-3 +1 +2 +3
116

Perform Quantitative Risk Management (T&T)
 Quantitative risk analysis & Modeling Technique
 Sensitivity Analysis
 Expected Monetary Value
 Decision Tree
 Modeling & Simulation
117

SENSITIVITY ANALYSIS
Tornado Diagram
Inflation
Currency
Discount rate
Market demand
Conformance
-$2M -$1M $0M +$1M +$2M
06/10 - 10/10 /2012
118

SENSITIVITY ANALYSIS
SPIDER DIAGRAM
Total cost of the project
Quality Skill
Logistics
Variation %
0%
(+)
(-) Time
119

Expected Monetary Value
Ei is the expected payoff for strategy i,
Pi,j is the payoff element, and
pj is the probability of each state of nature occurring.



n
j
jjii pPE
1
,
120

Expected Monetary Value
State of
nature
Boom Moderate Recess Expected
value
Strategy
0.20 0.50 0.30
S1 50 20 (40) 8
S2 40 10 (10) 10
S3 20 10 0 9
121

Large Plant
or
Small Plant
Small Plant
($200,000)
Large Plant
($500,000)
Recess
+400,000
Boom
+900,000
Recess
+160,000
Boom
+300,000
30%
70%
30%
70%
900k -500k = 400k
400k -500k = -100k
300k -200k = 100k
160k -200k = -40k
400*.3 -100*.7= 50k
100*.3 - 40*.7 = 2k
Decision Definition Decision Node Chance Node Net Path value
Decision Node
Chance Node
End of Branch
122

SIMULATION
+ + =
A B C Sum
123

SIMULATION
+ + =
A B C Sum
124

Total Cost Probability Distribution
06/10 - 10/10 /2012
125

Perform Quantitative Risk Management (outputs)
 Risk register updates:
 Probabilistic analysis
 Probability of achieving objectives
 Prioritized list of quantified risks
 Trends in quantitative risk analysis results
126

Plan Risk Responses
11-5
1. Risk register
Inputs
1. Strategies for negative risks
or threats
2. Strategies for positive risks or
opportunities
3. Contingent response
strategies
4. Expert judgment
Tools & Techniques
2. Risk-related contract
decisions
3. Project management plan
updates
4. Project document updates
Outputs

Plan Risk Responses (T&T)
 Strategies for negative risks:
1. Avoid
2. Transfer
3. Mitigate
4. Accept
128

Risk Avoidance
 Involves changing the project management plan to
eliminate the threat entirely
 Some risks that arise early in the project can be
avoided by clarifying requirements, obtaining
information, improving communication, or acquiring
expertise
 One form of avoidance is to shut down the project
129

Risk Transfer
 Requires shifting the negative impact of a threat,
along with ownership of the response, to a third
party.
 Cost-type contract transfer the cost risk to the buyer
 Fixed-price contract transfer risk to the seller
130

Risk Mitigation
Implies a reduction in the probability and/or impact
of an adverse risk event to an acceptable threshold
131

Risk Acceptance
 Passive acceptance requires no action
 Active acceptance strategy is to
establish a contingency reserve for
known (sometimes unknown) risks
132

Strategies for Threats
133
AvoidReduce
TransferAccept

Plan Risk Responses (T&T)
 Strategies for positive risks:
1. Exploit
2. Share
3. Enhance
4. Accept
134

Risk Exploiting
Eliminate the uncertainty associated with a
particular upside risk by making the opportunity
definitely happen.
135

Risk Sharing
Involves allocating ownership to a third party who is
best able to capture the opportunity for the benefit of
the project
136

Risk Enhancement
Modifies the “size” of
an opportunity by:
1. Increasing probability
and/or positive
impacts
2. Identifying and
maximizing key
drivers of these
positive-impact risks
137

Strategies for Opportunities
138
ExploitEnhance
ShareAccept
Amount of
Benefit
Occurrence
Frequency

139
06/10 - 10/10 /2012
Risk register
( after planning risk responses)
Task Cause Risk Effect Probability Impact Trigger Response Allocation Owner Residual risk Secondary risk
Design
Procurement
Handing out
Executing
Verification

Risk-Related Contract Decisions
Contractorincentive
Firm Fixed Price (FFP)
Fixed Price Plus Incentive Fee (FPIF)
Fixed Price with Economic Price Adjustments (FP-EPA)
Cost Plus Fixed Fee (CPFF)
Cost Plus Incentive Fee (CPIF)
Customer influence
Cost Plus Award Fee (CPAF)
Time & Materials
Customer risk
Contractorrisk
140

Contingency
141

Monitor & Control Risks
11-6
1. Risk register
3. Work performance
information
4. Performance reports
Inputs
1. Risk assessment
2. Risk audits
3. Variance & trend analysis
4. Technical performance
measurement
5. Reserve analysis
6. Status meetings
Tools & Techniques
assets updates
3. Change requests
updates
5. Project document updates
Outputs

Monitor & Control Risks (T&T)
 Risk reassessment
 Risk Audits
 Variance & Trend Analysis
 Technical Performance
Measurements
 Reserve Analysis
 Status Meetings
143

Common Construction Project Risk
1. Tight project schedule
2. Design variations
3. Excessive approval procedures in administrative government departments
4. High performance/quality expectations
5. Inadequate program scheduling
6. Unsuitable construction program planning
7. Variations of construction programs
8. Low management competency of subcontractors
9. Variations by the client
10. Incomplete approval and other documents
11. Incomplete or inaccurate cost estimate
12. Lack of coordination between project participants
13. Unavailability of sufficient professionals and managers
14. Unavailability of sufficient amount of skilled labor
15. Bureaucracy of government
16. General safety accident occurrence
17. Inadequate or insufficient site information (soil test and survey report)
18. Occurrence of dispute
19. Price inflation of construction materials
20. Serious noise pollution caused by construction
144

K A R I M E L - D A S H
K _ E L D A S H @ H O T M A I L . C O M
T E L : 9 6 5 - 9 9 3 1 0 2 6 1
F A X : 9 6 5 - 2 2 3 1 4 5 3 3
06/10 - 10/10 /2012
145
THANKS

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