This document provides an overview of project risk management processes based on the PMBOK 6th edition. It discusses the seven processes in project risk management, including plan risk management, identify risks, perform qualitative analysis, perform quantitative analysis, plan risk responses, implement risk responses, and monitor risks. It also describes key inputs, tools and techniques, and outputs for each process. The document emphasizes quantitative risk analysis methods like simulation and decision trees for assessing overall project risk. It provides examples of how to calculate expected monetary value and adjust risk based on the dynamic project environment.
The risk is one of the main variables that can declare the success or the failure of one project.
In this presentation, the "Project Risk" topic is treated from the point of view of methodology and theory; a real case study ("PMP certification course") has been chosen to demonstrate the applicability of the methodology in which risk management has proven to be the key factor for the success of the project.
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 risk is one of the main variables that can declare the success or the failure of one project.
In this presentation, the "Project Risk" topic is treated from the point of view of methodology and theory; a real case study ("PMP certification course") has been chosen to demonstrate the applicability of the methodology in which risk management has proven to be the key factor for the success of the project.
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
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.
The presentation about Project Risk Management conducted by Mr. Mohamad Boukhari for the project management community in Lebanon during PMI Lebanon Chapter monthly lecture.
Risk Management is a critical success factor for all project work.
Risk identification, quantitative and qualitative analysis, and risk response planning and execution is provided in this presentation
Kuala Lumpur - PMI Global Congress 2009 - Risk ManagementTorsten Koerting
Presentation on Risk Management Tools, like Risk Register, Risk Profile Presentation Options, How to facilitate a Risk Assessment and effective Processes for day to day application of Risk Management in your Project
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.
The presentation about Project Risk Management conducted by Mr. Mohamad Boukhari for the project management community in Lebanon during PMI Lebanon Chapter monthly lecture.
Risk Management is a critical success factor for all project work.
Risk identification, quantitative and qualitative analysis, and risk response planning and execution is provided in this presentation
Kuala Lumpur - PMI Global Congress 2009 - Risk ManagementTorsten Koerting
Presentation on Risk Management Tools, like Risk Register, Risk Profile Presentation Options, How to facilitate a Risk Assessment and effective Processes for day to day application of Risk Management in your Project
Protecting project interests from possible risks of major financial liabilities has always been a major business concern. Projects must properly been managed by qualitative risk assessment to minimize or to avoid risk occur in a project planning.
Final Class Presentation on Determining Project Stakeholders & Risks.pptxGeorgeKabongah2
“A person or group of people who have a vested interest in the success of an organization or project and the environment in which the organization/ project operates”
Online PMP Training Material for PMP Exam - Risk Management Knowledge AreaGlobalSkillup
Risk Management Knowledge Area in Project management defined by PMBOK 5th Edition by Project Management Institute (PMI). Provided by GlobalSkillup.com towards PMP Certification Exam.
Risk analysis for project decision-making
Presented by Keith Gray
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Macclesfield
Adopting the Quadratic Mean Process to Quantify the Qualitative Risk AnalysisRicardo Viana Vargas
The objective of this paper is to propose a mathematical process to turn the results of a qualitative risk analysis into numeric indicators to support better decisions regarding risk response strategies.
Using a five-level scale for probability and a set of scales to measure different aspects of the impact and time horizon, a simple mathematical process is developed using the quadratic mean (also known as root mean square) to calculate the numerical exposition of the risk and consequently, the numerical exposition of the project risks.
This paper also supports the reduction of intuitive thinking when evaluating risks, often subject to illusions, which can cause perception errors. These predictable mental errors, such as overconfidence, confirmation traps, optimism bias, zero-risk bias, sunk-cost effect, and others often lead to the underestimation of costs and effort, poor resource planning, and other low-quality decisions (VIRINE, 2010).
Similar to Risk project management - Notes for the CAMP exam (20)
Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
The Team Member and Guest Experience - Lead and Take Care of your restaurant team. They are the people closest to and delivering Hospitality to your paying Guests!
Make the call, and we can assist you.
408-784-7371
Foodservice Consulting + Design
Oprah Winfrey: A Leader in Media, Philanthropy, and Empowerment | CIO Women M...CIOWomenMagazine
This person is none other than Oprah Winfrey, a highly influential figure whose impact extends beyond television. This article will delve into the remarkable life and lasting legacy of Oprah. Her story serves as a reminder of the importance of perseverance, compassion, and firm determination.
The case study discusses the potential of drone delivery and the challenges that need to be addressed before it becomes widespread.
Key takeaways:
Drone delivery is in its early stages: Amazon's trial in the UK demonstrates the potential for faster deliveries, but it's still limited by regulations and technology.
Regulations are a major hurdle: Safety concerns around drone collisions with airplanes and people have led to restrictions on flight height and location.
Other challenges exist: Who will use drone delivery the most? Is it cost-effective compared to traditional delivery trucks?
Discussion questions:
Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
External forces vary by country: Regulations, consumer acceptance, and infrastructure all differ between countries.
Demographics matter: Younger generations might be more receptive to drone delivery, while older populations might have concerns.
Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
Artificial intelligence (AI) offers new opportunities to radically reinvent the way we do business. This study explores how CEOs and top decision makers around the world are responding to the transformative potential of AI.
3. UNDERSTAND THE SEVEN PROJECT MANAGEMENT
PROCESSES IN THE PROJECT RISK KNOWLEDGE AREA
KNOWLEDGE AREA
11. PROJECT RISK MANAGEMENT
PROJECT MANAGEMENT PROCESS GROUPS
INTEGRATING PLANNING EXECUTING MONITORING & CONTROLLING CLOSING
11.1 PLAN RISK MANAGEMENT 11.7 MONITOR RISKS
11.2 IDENTIFY RISKS
11.3 PERFORM QUALITATIVE ANALYSIS
11.4 PERFORM QUANTITATIVE ANALYSIS
11.5 PLAN RISK RESPONSES
11.6 IMPLEMENT RISK RESPONSES
4. UNDERSTAND THE SEVEN PROJECT MANAGEMENT
PROCESSES IN THE PROJECT RISK KNOWLEDGE AREA
Plan Risk Management
(How conduct risk management
activities for the project)
Identify Risk (Identification of
individual risks and sources of
overall project risk, and
documenting their
characteristics.
Perform a Qualitative Risk
Analysis
(Prioritazing individual risks for
further analysis by assessing
their probability of occurrence
and impact)
Perform Quantitative Analysis
(Numerically analysis of the
identified risks and other
uncertainties)
Plan Risk Responses
(Develop options, strategies and
agreeing on actions to address
overall and individual risks)
Implement Risk Responses
(Implementing all actions
agree-upon to address the
risks)
Monitor Risk
(Monitoring of implementation
of risk response plans, tracking
identified risks, analyzing new
risks, and evaluating risk
processes
5. UNDERSTAND THE SEVEN PROJECT MANAGEMENT PROCESSES IN THE
PROJECT RISK KNOWLEDGE AREA
Plan
Response
s
Identify
Qualitativ
e
Analysis
Quantitativ
e Analysis
Plan
manageme
nt
Impleme
nt
Respons
es
Monitor
6. PROJECT RISK MANAGEMENT PROCESSES
INPUTS - TOOLS AND TECHNIQUES - OUTPUTS
11.1 PLAN RISK MANAGEMENT
INPUTS TOOLS & TECHNIQUES OUTPUTS
1. Project Charter 1. Expert Judgement 1. RISK MANAGEMENT
PLAN
2. Project Management
Plan
2. Data Analysis
3. Project Documents 3. Meetings
4. Enterprise
Environmental Factors
5. Organization Processes
Assets
8. PROJECT RISK MANAGEMENT PROCESSES
INPUTS - TOOLS AND TECHNIQUES - OUTPUTS
11.3 PERFORM QUALITATIVE ANALYSIS
INPUTS TOOLS & TECHNIQUES OUTPUTS
1. Project Management
Plan
1. Expert Judgement 1. Project Documents
Updates
2. Project Documents 2. Data Gathering
3. Enterprise
Environmental Factors
3. Data Analysis
4. Organization Process
Assets
4. Interpersonal and
Team Skills
5. Risk Categorization
6. Data Representation
7. Meetings
9. PROJECT RISK MANAGEMENT PROCESSES
INPUTS - TOOLS AND TECHNIQUES - OUTPUTS
11.4 PERFORM QUANTITATIVE ANALYSIS
INPUTS TOOLS & TECHNIQUES OUTPUTS
1. Project Management
Plan
1. Expert Judgement 1. Project Documents
Updates
2. Project Documents 2. Data Gathering
3. Enterprise
Environmental Factors
3. Interpersonal and
Team Skills
4. Organization Process
Assets
4. Representation of
uncertainty
5. Data Analysis
10. PROJECT RISK MANAGEMENT PROCESSES
INPUTS - TOOLS AND TECHNIQUES - OUTPUTS
11.5 PLAN RISK RESPONSES
INPUTS TOOLS & TECHNIQUES OUTPUTS
1. Project Management
Plan
1. Expert Judgement 1. CHANGE REQUESTS
2. Project Documents 2. Data Gathering 2. Project Management
Plan Updates.
3. Enterprise
Environmental Factors
3. Interpersonal and
Team Skills
3. Project Documents
Updates
4. Organization Process
Assets
4. Strategies for
threats
5. Strategies for
Opportunities
6. Contingent response
strategies.
7. Strategies for overall
project risks
11. PROJECT RISK MANAGEMENT PROCESSES
INPUTS - TOOLS AND TECHNIQUES - OUTPUTS
11.6 IMPLEMENT RISK RESPONSES
INPUTS TOOLS & TECHNIQUES OUTPUTS
1. Project Management
Plan
1. Expert Judgement 1. CHANGE REQUESTS
2. Project Documents 2. Interpersonal and
Team Skills
2. Project Documents
Updates.
3. Organization Process
Assets
3. Project Management
Information Systems
12. PROJECT RISK MANAGEMENT PROCESSES
INPUTS - TOOLS AND TECHNIQUES - OUTPUTS
11.7 MONITOR RISK
INPUTS TOOLS & TECHNIQUES OUTPUTS
1. Project Management
Plan
1. Data Analysis 1. Work Performance
Information
2. Project Documents 2. Audits 2. CHANGE REQUESTS
3. Work Performance Data 3. Meetings 3. Project Management
Plan Updates
4. Work Performance
Reports
4. Project Documents
Updates
5. Organizational
Process Assets updates.
13. KEY DOCUMENTS IN PROJECT RISK
MANAGEMENT• RISK MANAGEMENT PLAN TO ESTABLISH HOW ALL THE ACTIVITIES OF
IDENTIFICATION, ANALYSIS, RESPONSE AND CONTROL OF RISK WILL BE HANDLE.
RISK MANAGEMENT PLAN ALSO INCLUDES:
• RISK APPROACH,
• ROLES AND RESPONSIBILITIES,
• PROTOCOLS FOR USE CONTINGENCY FUNDS,
• TIMING OR HOW OFTEN THE RISK MANAGEMENT ACTIVITIES WILL BE PERFORMED IN THE
PROJECT,
• RISK CATEGORIES BY THE SOURCE (TECHNICAL RISK, MANAGEMENT RISK, COMMERCIAL
RISK, AND EXTERNAL RISK),
• STAKEHOLDER RISK APPETITE,
• DEFINITION OF THE RISK PROBABILITY IN PERCENTAGE,
• IMPACT OF THE RISK EXPRESSED ON TIME, COST, AND QUALITY IMPACT,
• PROBABILITY AND IMPACT MATRIX
• REPORTING FORMATS AND,
• TRACKING
14. KEY DOCUMENTS IN PROJECT RISK
MANAGEMENT• IN THE GROUP OF PROJECT DOCUMENTS:
RISK REGISTER: CAPTURE DETAILS OF IDENTIFIED INDIVIDUAL PROJECT RISKS.
IN THE RISK REGISTER WE RECORD THE RESULTS OF:
• QUALITATIVE RISK ANALYSIS,
• PLAN RISK RESPONSES,
• IMPLEMENT RISK RESPONSES, AND
• MONITOR RISKS.
THE RISK REGISTER MAY CONTAIN A LOT OF RISK INFORMATION, ALL DEPENDED OF THE SIZE AND
COMPLEXITY OF THE PROJECT.
THE RISK REGISTER MAY CONTAIN THE FOLLOWING:
• LIST OF IDENTIFIED RISKS
• POTENTIAL RISK OWNERS
• LIST OF POTENTIAL RISK RESPONSES
15. KEY DOCUMENTS IN PROJECT RISK
MANAGEMENT
RISK REPORT: REPRESENT INFORMATION ON SOURCE OF OVERALL PROJECT RISK,
TOGETHER WITH SUMMARY INFORMATION OF IDENTIFIED INDIVIDUAL PROJECT
RISKS.
THIS REPORT IS DEVELOPED PROGRESSIVELY THROUGHOUT OF THE PROJECT RISK
MANAGEMENT PROCESS.
IN THE RISK REPORT WE RECORD THE RESULTS OF:
• QUALITATIVE RISK ANALYSIS,
• QUANTITATIVE RISK ANALYSIS,
• PLAN RISK RESPONSES,
• IMPLEMENT RISK RESPONSES, AND
• MONITOR RISKS
FOR ALL THE COMPLETE PROCESSES. RISK REPORT CAN INCLUDE SOURCE OF OVERALL
PROJECT RISK INDICATING THE TRIGGER FOR THOSE RISKS AND SUMMARY
INFORMATION OF THE INDIVIDUAL RISKS SUCH THREATS AND OPPORTUNITIES,
DISTRIBUTION OF THE RISK, CATEGORIES OF RISKS, METRICS, TRENDS, ETC.
16. KEY DOCUMENTS IN PROJECT RISK
MANAGEMENT
OTHER IMPORTANT DOCUMENT IN PROJECT RISK MANAGEMENT IS:
WORK PERFORMANCE INFORMATION : INCLUDE INFORMATION ON HOW PROJECT RISK
MANAGEMENT IS PERFORMING BY COMPARING THE INDIVIDUAL RISK THAT HAVE
OCCURRED WITH THE EXPECTATION OF HOW THEY WOULD OCCUR. THIS INFORMATION
INDICATES THE EFFECTIVENESS OF THE RESPONSE PLANNING AND RESPONSE
IMPLEMENTATION PROCESSES.
17. RISK CALCULATIONS
• DATA ANALYSIS TECHNIQUE
SIMULATION: THIS TECHNIQUE USE A SIMULATION MODEL THAT COMBINED EFFECTS
OF INDIVIDUAL PROJECT RISKS AND OTHER SOURCES OF UNCERTAINTY TO EVALUATE
THEIR POTENTIAL IMPACT ON ACHIEVING PROJECT OBJECTIVES.
SIMULATION TECHNIQUE ARE TYPICALLY PERFORMING USING A MONTE CARLO
ANALYSIS,
WHEN USE MONTE CARLO ANALYSIS FOR COST RISK THE SIMULATION USES THE
PROJECT COST ESTIMATES.
WHEN RUNNING A MONTE CARLO ANALYSIS FOR SCHEDULE RISK THE SCHEDULE
NETWORK DIAGRAM AND DURATION ESTIMATES ARE USED.
AN INTEGRATED QUANTITATIVE COST-SCHEDULE RISK ANALYSIS USES BOTH INPUTS.
THE OUTPUT IS A QUANTITATIVE RISK ANALYSIS MODEL.
18. RISK CALCULATIONS
• ASSESSING OVERALL PROJECT RISK—QUANTITATIVE ANALYSIS
THE DEFINITIONS OF OVERALL PROJECT RISK AS “THE EFFECT OF UNCERTAINTY ON
THE PROJECT AS A WHOLE, ARISING FROM ALL SOURCES OF UNCERTAINTY INCLUDING
INDIVIDUAL RISKS, REPRESENTING THE EXPOSURE OF STAKEHOLDERS TO THE
IMPLICATIONS OF VARIATIONS IN PROJECT OUTCOMES, BOTH POSITIVE AND
NEGATIVE”.
RAISES QUESTIONS ABOUT THE RISKINESS OF THE WHOLE PROJECT THAT HAVE
QUANTITATIVE ANSWERS. FOR EXAMPLE:
• HOW LIKELY IS THIS PROJECT TO SUCCEED (OR FAIL)?, AND WHAT IS THE POTENTIAL
RANGE OF VARIATION IN OUTCOME?
• ANSWERING THESE QUESTIONS REQUIRES USE OF QUANTITATIVE RISK ANALYSIS
METHODS TO MODEL THE EFFECT OF UNCERTAINTY ON THE PROJECT AS A WHOLE
AND TO DETERMINE THE POTENTIAL MAGNITUDE OF VARIATION IN OUTCOME
(VOSE, 2008).
• THE STANDARD MONTE CARLO SIMULATION APPROACH IS IDEAL FOR THIS TYPE OF
ANALYSIS, SINCE THE MAIN OUTPUT PRESENTS THE RANGE OF POSSIBLE OUTCOMES
AGAINST THE PROBABILITY OF EACH VALUE BEING ACHIEVED.
19. RISK CALCULATIONS
• THIS IS USUALLY SHOWN AS A CUMULATIVE PROBABILITY DENSITY PLOT, OR S-
CURVE, AND AN EXAMPLE OF COST RISK ANALYSIS IS SHOWN IN THE EXHIBIT 3
20. RISK CALCULATIONS
• WE CAN ANSWER THE TWO KEY QUANTITATIVE QUESTIONS DIRECTLY USING THE
RESULTS IN THE S-CURVE.
• ADDRESSING THE FIRST QUESTION (HOW LIKELY IS THIS PROJECT TO SUCCEED
(OR FAIL)?),
• THE S-CURVE IN EXHIBIT 3 SHOWS THAT THE PROBABILITY OF MEETING THE PROJECT
COST TARGET OF US$2.2M IS 23%, WITH A 77% CHANCE OF EXCEEDING THE BUDGET.
(DASH CIRCLE IN PINK)
• THE ANALYSIS PREDICTS AN EXPECTED OUTCOME OF US$2.35M, WHICH IS AN
OVERSPEND OF US$0.15M OR 7%.
• THE PROJECT SPONSOR CAN DETERMINE VALUES OF TOTAL PROJECT COST THAT
CORRESPOND TO CHOSEN CONFIDENCE LEVELS; FOR EXAMPLE, THERE WOULD BE AN
85% CHANCE OF MEETING A REVISED BUDGET OF US$2.45M. THIS ALLOWS THE
PROJECT SPONSOR TO MAKE RISK-INFORMED DECISIONS TRADING OFF INCREASED
COST (+ US$0.25M) AGAINST INCREASED PROBABILITY OF SUCCESS (FROM 23% TO
85%). (BLUE CIRCLE)
21. RISK CALCULATIONS
• USING A DECISION TREE
FOR EXAMPLE:
AS PROJECT MANAGER YOU NEED DECIDE WHEATEAR TO CREATE A NEW WEB IN-
HOUSE OR CONTRACT A DEVELOPER. IF YOU CREATE THE WEB THE COST IS U$
165,000 AND A CERTAIN TO COMPLETE ON TIME OF 75%. IF YOU CONTRACT A
DEVELOPER THE COST IS U$ 175,000 WITH THE CERTAIN TO FINISH ON TIME OF
85%.
THE TREE DECISION GRAPHIC WILL BE:
23. RISK CALCULATIONS
• USING A DECISION TREE
EXPECTED MONETARY VALUE (EMV) IS A STATISTICAL TECHNIQUE IN RISK MANAGEMENT THAT IS USED
TO QUANTIFY THE RISKS, WHICH IN TURN, ASSISTS THE PROJECT MANAGER TO CALCULATE THE
CONTINGENCY RESERVE. ... IT HELPS IN SELECTING THE CHOICE WHICH INVOLVES LESS MONEY TO
MANAGE THE RISKS.
TO CALCULATE EMV, MULTIPLY THE DOLLAR VALUE OF EACH POSSIBLE OUTCOME BY EACH OUTCOME'S
CHANCE OF OCCURRING (PERCENTAGE), AND TOTAL THE RESULTS.
CALCULATING THE EXPECTED MONETARY VALUE OF EACH POSSIBLE DECISION PATH IS A WAY TO
QUANTIFY EACH DECISION IN MONETARY TERMS. CALCULATING EXPECTED MONETARY VALUE BY
USING DECISION TREES IS A RECOMMENDED TOOL AND TECHNIQUE FOR QUANTITATIVE RISK ANALYSIS.
28. HOW AND WHEN ADJUST RISK BASED ON THE PROJECT
ENVIRONMENT
PROJECTS THAT ARE DEVELOPED ON HIGH VARIABLE ENVIRONMENTS INCUR
MORE IN UNCERTAINTY AND RISK. TO ADDRESS THIS, PROJECT MANAGER
USING ADAPTIVE APPROACHES BY MAKE FREQUENT REVIEWS OF
INCREMENTAL WORK PRODUCTS AND CROSS FUNCTIONAL PROJECT TEAMS
TO ACCELERATE KNOWLEDGE SHARING AND ENSURE THAT RISK IS
UNDERSTOOD AND MANAGED.
RISK IS CONSIDERED WHEN SELECTING THE CONTENT OF EACH ITERATION,
AND RISK WILL ALSO IDENTIFY, ANALYZE AND MANAGED DURING EACH
ITERATION.
ADDITIONALLY, THE REQUIREMENTS ARE KEPT AS A LIVING DOCUMENT
THAT IS UPDATED REGULARLY, AND WORK MAY BE REPRIORITIZED AS THE
PROJECT PROGRESSES, BASED ON A PROVE UNDERSTANDING OF CURRENT
RISK EXPOSURE.
WHEN ADJUST RISK? ONCE IS IDENTIFY AT EACH ITERATION SHOULD BE
ANALYZED AND MANAGED.
HOW ADJUST RISK? USING AN ADAPTIVE APPROACH, PERFORMING FREQUENT
REVIEWS DURING THE PROJECT LIFE CYCLE AND CROSS FUNCTIONAL OF THE
ENTERPRISE, SHARING KNOWLEDGE, ENSURING EVERYONE UNDERSTAND THE
29. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
PROJECT RISK MANAGEMENT INCLUDES PROCESSES OF CONDUCTING RISK
MANAGEMENT PLANNING, IDENTIFICATION, ANALYSIS, RESPONSES PLANNING,
RESPONSE IMPLEMENTATION, AND MONITORING RISK ON A PROJECT. THE
OBJECTIVE OF THE PROJECT RISK MANAGEMENT ARE TO INCREASE THE
PROBABILITY AND/OR IMPACT OF POSITIVE RISKS AND DECREASE THE
PROBABILITY AND/OR IMPACT OF NEGATIVE RISKS, IN ORDER TO OPTIMIZE THE
CHANCES OF PROJECT SUCCESS.
PROJECT RISK MANAGEMENT PROCESSES ARE:
PLAN RISK MANAGEMENT
IDENTIFY RISK
PERFORM QUALITATIVE RISK ANALYSIS
PERFORM QUANTITATIVE RISK ANALYSIS
PLAN RISK RESPONSES
IMPLEMENT RISK RESPONSES
MONITOR RISK
30. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
INPUTS FOR PROJECT RISK MANAGEMENT
PROJECT MANAGEMENT PLAN AND PROJECT DOCUMENTS ARE INPUTS FOR THE 7
PROCESSES AS WELL THE EEF AND OPA, EXCEPT FOR MONITORING RISK.
PLAN RISK MANAGEMENT HAS ADDITIONALLY THE PROJECT CHARTER AS INPUT.
IDENTIFY RISK HAS AGREEMENTS, PROCUREMENTS DOCUMENTS, IN ADDITION OF PROJECT
MANAGEMENT PLAN AND PROJECT DOCUMENTS.
CONTROL RISK HAS AS INPUTS IN ADDITION OF THE PROJECT MANAGEMENT PLAN, THE
WORK PERFORMANCE DATA AND WORK PERFORMANCE REPORT.
TOOLS AND TECHNIQUES FOR PROJECT RISK MANAGEMENT
EXPERT JUDGEMENT IS APPLICABLE FOR THE 7 PROCESSES
DATA ANALYSIS IS USED IN MOST PROCESSES EXCEPT FOR THE PROCESS OF IMPLEMENT
RISK RESPONSES.
INTERPERSONAL AND TEAM SKILLS IS USED ON MOST PROCESSES EXCEPT PLAN RISK
MANAGEMENT AND MONITOR RISK.
OTHER TECHNIQUES AS MEETINGS, STRATEGIES ARE APPLICABLE IN ACCORDANCE OF THE
PROCESS.
32. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
KEY DOCUMENTS FOR PROJECT RISK MANAGEMENT ARE:
RISK MANAGEMENT PLAN BECAUSE DETAIL HOW RISK MANAGEMENT ACTIVITIES WILL BE
STRUCTURED AND PERFORMED.
RISK REGISTER BECAUSE CAPTURE DETAILS OF IDENTIFIED INDIVIDUAL PROJECT RISKS.
ALSO CONTAIN THE RESULTS OF PERFORM QUALITATIVE RISK ANALYSIS, PLAN RISK
RESPONSES, IMPLEMENT RISK RESPONSES AND MONITOR RISK.
RISK REPORT BECAUSE PRESENT BOTH RISK, THE SOURCE OF OVERALL RISKS, AND THE
INDIVIDUAL RISK, AND RESULTS OF ALL THE PROCESSES RISK MANAGEMENT INCLUDING
THE QUANTITATIVE RISK ANALYSIS.
34. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
RISK CALCULATIONS (EXPECTED MONETARIO VALUE)
WHAT IF :
EAR
N
EAR
N
LOOSE
LOOSE
LOOSE
35. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
RISK CALCULATIONS (EXPECTED MONETARIO VALUE)
EAR
N
EAR
N
LOOSE
LOOSE
36. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
RISK CALCULATIONS (EXPECTED MONETARIO VALUE)
EAR
N
EAR
N
LOOSE
LOOSE
37. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
RISK CALCULATIONS (EXPECTED MONETARIO VALUE)
EAR
N
EAR
N
LOOSE
LOOSE
38. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
RISK CALCULATIONS (EXPECTED MONETARIO VALUE)
EAR
N
EAR
N
LOOSE
LOOSE
39. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
RISK CALCULATIONS (EXPECTED MONETARIO VALUE)
EAR
N
EAR
N
LOOSE
LOOSE
40. SUMMARY OF CHAPTER 11 PROJECT RISK MANAGEMENT
WHEN AND HOW TO ADJUST RISK
WHEN ADJUST RISK? ONCE IS IDENTIFY AT EACH ITERATION SHOULD
BE ANALYZED AND MANAGED.
HOW ADJUST RISK? USING AN ADAPTIVE APPROACH, PERFORMING
FREQUENT REVIEWS DURING THE PROJECT LIFE CYCLE AND CROSS
FUNCTIONAL OF THE ENTERPRISE, SHARING KNOWLEDGE, ENSURING
EVERYONE UNDERSTAND THE RISK.
GOOD LUCK