The document discusses risk management and provides details on risk identification, projection (estimation), and mitigation. It defines risk and outlines two key characteristics - uncertainty and loss. Risks are categorized by project, technical, and business types. Steps for risk management include identifying possible risks, analyzing each risk's probability and impact, ranking risks, and developing contingency plans for high probability/impact risks.
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 β OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.
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Summary:
Risk
Risk management
Risk Management process groups
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Responses
Control Risks
This complete presentation has a set of thirty two slides to show your mastery of the subject. Use this ready-made PowerPoint presentation to present before your internal teams or the audience. All presentation designs in this Risk Analysis PowerPoint Presentation Slides have been crafted by our team of expert PowerPoint designers using the best of PPT templates, images, data-driven graphs and vector icons. The content has been well-researched by our team of business researchers. The biggest advantage of downloading this deck is that it is fully editable in PowerPoint. You can change the colors, font and text without any hassle to suit your business needs.
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 β OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.
what is the definition of risk management
risk management services
risk management certification
risk management for project management
risk management terms
celgene risk management
risk management framework
risk management jobs
business research topics for mba
mba topics for presentation
mba project topics
mba research topics in management
dissertation topics for mba
mba finance research topics
mba topics on strategic management
thesis topic for mba
Summary:
Risk
Risk management
Risk Management process groups
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Responses
Control Risks
This complete presentation has a set of thirty two slides to show your mastery of the subject. Use this ready-made PowerPoint presentation to present before your internal teams or the audience. All presentation designs in this Risk Analysis PowerPoint Presentation Slides have been crafted by our team of expert PowerPoint designers using the best of PPT templates, images, data-driven graphs and vector icons. The content has been well-researched by our team of business researchers. The biggest advantage of downloading this deck is that it is fully editable in PowerPoint. You can change the colors, font and text without any hassle to suit your business needs.
Risk Identification Process PowerPoint Presentation SlidesSlideTeam
Β
Showcase planned methods of hazard analysis with our content ready Risk Identification Process PowerPoint Presentation Slides. The hazard awareness process PowerPoint complete deck has forty-five PPT slides like risk management introduction, types of risks, risk categories, stakeholderβs management and engagement, risk appetite and tolerance, procedure, risk management plan, risk identification, risk register, risk assessment, risk analysis, risk response plan, risk response matrix, risk control matrix, risk items tracking, tools and practices, risk impact & profitability analysis, risk mitigations strategies, plans, qualitative and quantitative risk analysis, etc. All PowerPoint templates of risk assessment steps presentation are fully editable, edit them as per your specific project needs. The same risk management presentation deck can also be used to portray topics such as risk analysis, risk appetite, business continuity, risk-based auditing, hazard analysis, risk analysis, risk assessment and so on. Download this professionally designed risk management plan presentation deck to mitigate the risk. Our Risk Identification Process PowerPoint Presentation Slides are magnetic in nature. They will draw the right people to your cause.
Risk Management Process Steps PowerPoint Presentation Slides SlideTeam
Β
It covers all the important concepts and has relevant templates which cater to your business needs. This complete deck has PPT slides on Risk Management Process Steps PowerPoint Presentation Slides with well suited graphics and subject driven content. This deck consists of total of fifty four slides. All templates are completely editable for your convenience. You can change the colour, text and font size of these slides. You can add or delete the content as per your requirement. Get access to this professionally designed complete deck presentation by clicking the download button below.
A risk is defined as βan uncertain event or condition that, if it occurs, has a positive and negative effect on a projectβs objectives.β 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.
Excited to share my presentation on Lesson 03 - "Doing the Work" for PMI Authorized PMP Exam Preparation! ππ
In this session, I'll delve into the core aspects of effective project management, aligning your skills with PMI's renowned PMP certification. We'll explore the art of translating theory into practical action, delivering tangible results in complex projects. Join me in unraveling the secrets to success in the PMP exam journey! π‘π
#PMPExam #ProjectManagement #PMP #PMI #Certification #ProfessionalGrowth
Risk Identification Process PowerPoint Presentation SlidesSlideTeam
Β
Showcase planned methods of hazard analysis with our content ready Risk Identification Process PowerPoint Presentation Slides. The hazard awareness process PowerPoint complete deck has forty-five PPT slides like risk management introduction, types of risks, risk categories, stakeholderβs management and engagement, risk appetite and tolerance, procedure, risk management plan, risk identification, risk register, risk assessment, risk analysis, risk response plan, risk response matrix, risk control matrix, risk items tracking, tools and practices, risk impact & profitability analysis, risk mitigations strategies, plans, qualitative and quantitative risk analysis, etc. All PowerPoint templates of risk assessment steps presentation are fully editable, edit them as per your specific project needs. The same risk management presentation deck can also be used to portray topics such as risk analysis, risk appetite, business continuity, risk-based auditing, hazard analysis, risk analysis, risk assessment and so on. Download this professionally designed risk management plan presentation deck to mitigate the risk. Our Risk Identification Process PowerPoint Presentation Slides are magnetic in nature. They will draw the right people to your cause.
Risk Management Process Steps PowerPoint Presentation Slides SlideTeam
Β
It covers all the important concepts and has relevant templates which cater to your business needs. This complete deck has PPT slides on Risk Management Process Steps PowerPoint Presentation Slides with well suited graphics and subject driven content. This deck consists of total of fifty four slides. All templates are completely editable for your convenience. You can change the colour, text and font size of these slides. You can add or delete the content as per your requirement. Get access to this professionally designed complete deck presentation by clicking the download button below.
A risk is defined as βan uncertain event or condition that, if it occurs, has a positive and negative effect on a projectβs objectives.β 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.
Excited to share my presentation on Lesson 03 - "Doing the Work" for PMI Authorized PMP Exam Preparation! ππ
In this session, I'll delve into the core aspects of effective project management, aligning your skills with PMI's renowned PMP certification. We'll explore the art of translating theory into practical action, delivering tangible results in complex projects. Join me in unraveling the secrets to success in the PMP exam journey! π‘π
#PMPExam #ProjectManagement #PMP #PMI #Certification #ProfessionalGrowth
3. Definition of Risk
ο A risk is a potential problem β it might happen and it might not
ο Conceptual definition of risk
ο Risk concerns future happenings
ο Risk involves change in mind, opinion, actions, places, etc.
ο Risk involves choice and the uncertainty that choice entails
ο Two characteristics of risk
ο Uncertainty β the risk may or may not happen, that is, there are no 100% risks
(those, instead, are called constraints)
ο Loss β the risk becomes a reality and unwanted consequences or losses occur
3
4. Risk Categorization β Approach #1
ο Project risks
ο They threaten the project plan
ο If they become real, it is likely that the project schedule will slip and that costs will
increase
ο Technical risks
ο They threaten the quality and timeliness of the software to be produced
ο If they become real, implementation may become difficult or impossible
ο Business risks
ο They threaten the viability of the software to be built
ο If they become real, they jeopardize the project or the product
(More on next slide)
4
5. Risk Categorization β Approach #1
(continued)
ο Sub-categories of Business risks
ο Market risk β building an excellent product or system that no one really wants
ο Strategic risk β building a product that no longer fits into the overall business
strategy for the company
ο Sales risk β building a product that the sales force doesn't understand how to sell
ο Management risk β losing the support of senior management due to a change in
focus or a change in people
ο Budget risk β losing budgetary or personnel commitment
5
6. Risk Categorization β Approach #2
ο Known risks
ο Those risks that can be uncovered after careful evaluation of the project plan, the business
and technical environment in which the project is being developed, and other reliable
information sources (e.g., unrealistic delivery date)
ο Predictable risks
ο Those risks that are extrapolated from past project experience (e.g., past turnover)
ο Unpredictable risks
ο Those risks that can and do occur, but are extremely difficult to identify in advance
6
7. Reactive vs. Proactive Risk Strategies
ο Reactive risk strategies
ο "Don't worry, I'll think of something"
ο The majority of software teams and managers rely on this approach
ο Nothing is done about risks until something goes wrong
ο The team then flies into action in an attempt to correct the problem rapidly (fire fighting)
ο Crisis management is the choice of management techniques
ο Proactive risk strategies
ο Steps for risk management are followed (see next slide)
ο Primary objective is to avoid risk and to have a contingency plan in place to handle
unavoidable risks in a controlled and effective manner
7
8. Steps for Risk Management
1) Identify possible risks; recognize what can go wrong
2) Analyze each risk to estimate the probability that it will occur and the
impact (i.e., damage) that it will do if it does occur
3) Rank the risks by probability and impact
- Impact may be negligible, marginal, critical, and catastrophic
4) Develop a contingency plan to manage those risks having high probability
and high impact
8
10. Background
ο Risk identification is a systematic attempt to specify threats to the project plan
ο By identifying known and predictable risks, the project manager takes a first
step toward avoiding them when possible and controlling them when necessary
ο Generic risks
ο Risks that are a potential threat to every software project
ο Product-specific risks
ο Risks that can be identified only by those a with a clear understanding of the
technology, the people, and the environment that is specific to the software that is to
be built
ο This requires examination of the project plan and the statement of scope
ο "What special characteristics of this product may threaten our project plan?"
10
11. Risk Item Checklist
ο Used as one way to identify risks
ο Focuses on known and predictable risks in specific subcategories (see next slide)
ο Can be organized in several ways
ο A list of characteristics relevant to each risk subcategory
ο Questionnaire that leads to an estimate on the impact of each risk
ο A list containing a set of risk component and drivers and their probability of
occurrence
11
12. Known and Predictable Risk Categories
ο Product size β risks associated with overall size of the software to be built
ο Business impact β risks associated with constraints imposed by management
or the marketplace
ο Customer characteristics β risks associated with sophistication of the
customer and the developer's ability to communicate with the customer in a
timely manner
ο Process definition β risks associated with the degree to which the software
process has been defined and is followed
ο Development environment β risks associated with availability and quality
of the tools to be used to build the project
ο Technology to be built β risks associated with complexity of the system to
be built and the "newness" of the technology in the system
ο Staff size and experience β risks associated with overall technical and
project experience of the software engineers who will do the work
12
13. Questionnaire on Project Risk
(Questions are ordered by their relative importance to project success)
1) Have top software and customer managers formally committed to support
the project?
2) Are end-users enthusiastically committed to the project and the
system/product to be built?
3) Are requirements fully understood by the software engineering team and its
customers?
4) Have customers been involved fully in the definition of requirements?
5) Do end-users have realistic expectations?
6) Is the project scope stable?
13 (More on next slide)
14. Questionnaire on Project Risk
(continued)
7) Does the software engineering team have the right mix of skills?
8) Are project requirements stable?
9) Does the project team have experience with the technology to be
implemented?
10) Is the number of people on the project team adequate to do the job?
11) Do all customer/user constituencies agree on the importance of the project
and on the requirements for the system/product to be built?
14
15. Risk Components and Drivers
ο The project manager identifies the risk drivers that affect the following risk
components
ο Performance risk - the degree of uncertainty that the product will meet its requirements
and be fit for its intended use
ο Cost risk - the degree of uncertainty that the project budget will be maintained
ο Support risk - the degree of uncertainty that the resultant software will be easy to correct,
adapt, and enhance
ο Schedule risk - the degree of uncertainty that the project schedule will be maintained and
that the product will be delivered on time
ο The impact of each risk driver on the risk component is divided into one of four
impact levels
ο Negligible, marginal, critical, and catastrophic
ο Risk drivers can be assessed as impossible, improbable, probable, and frequent
15
17. Background
ο Risk projection (or estimation) attempts to rate each risk in two ways
ο The probability that the risk is real
ο The consequence of the problems associated with the risk, should it occur
ο The project planner, managers, and technical staff perform four risk projection
steps (see next slide)
ο The intent of these steps is to consider risks in a manner that leads to
prioritization
ο Be prioritizing risks, the software team can allocate limited resources where
they will have the most impact
17
18. Risk Projection/Estimation Steps
1) Establish a scale that reflects the perceived likelihood of a risk (e.g., 1-low,
10-high)
2) Delineate the consequences of the risk
3) Estimate the impact of the risk on the project and product
4) Note the overall accuracy of the risk projection so that there will be no
misunderstandings
18
19. Contents of a Risk Table
ο A risk table provides a project manager with a simple technique for risk
projection
ο It consists of five columns
ο Risk Summary β short description of the risk
ο Risk Category β one of seven risk categories (slide 12)
ο Probability β estimation of risk occurrence based on group input
ο Impact β (1) catastrophic (2) critical (3) marginal (4) negligible
ο RMMM β Pointer to a paragraph in the Risk Mitigation, Monitoring, and
Management Plan
Risk Summary Risk Category Probability Impact (1-4) RMMM
19
(More on next slide)
20. Developing a Risk Table
ο List all risks in the first column (by way of the help of the risk item checklists)
ο Mark the category of each risk
ο Estimate the probability of each risk occurring
ο Assess the impact of each risk based on an averaging of the four risk
components to determine an overall impact value (See next slide)
ο Sort the rows by probability and impact in descending order
ο Draw a horizontal cutoff line in the table that indicates the risks that will be
given further attention
20
21. Assessing Risk Impact
ο Three factors affect the consequences that are likely if a risk does occur
ο Its nature β This indicates the problems that are likely if the risk occurs
ο Its scope β This combines the severity of the risk (how serious was it) with its overall
distribution (how much was affected)
ο Its timing β This considers when and for how long the impact will be felt
ο The overall risk exposure formula is RE = P x C
ο P = the probability of occurrence for a risk
ο C = the cost to the project should the risk actually occur
ο Example
ο P = 80% probability that 18 of 60 software components will have to be developed
ο C = Total cost of developing 18 components is $25,000
ο RE = .80 x $25,000 = $20,000
21
23. Background
ο An effective strategy for dealing with risk must consider three issues
(Note: these are not mutually exclusive)
ο Risk mitigation (i.e., avoidance)
ο Risk monitoring
ο Risk management and contingency planning
ο Risk mitigation (avoidance) is the primary strategy and is achieved through a
plan
ο Example: Risk of high staff turnover (see next slide)
23 (More on next slide)
24. Background (continued)
Strategy for Reducing Staff Turnover
ο± Meet with current staff to determine causes for turnover (e.g., poor working
conditions, low pay, competitive job market)
ο± Mitigate those causes that are under our control before the project starts
ο± Once the project commences, assume turnover will occur and develop techniques
to ensure continuity when people leave
ο± Organize project teams so that information about each development activity is
widely dispersed
ο± Define documentation standards and establish mechanisms to ensure that
documents are developed in a timely manner
ο± Conduct peer reviews of all work (so that more than one person is "up to speed")
ο± Assign a backup staff member for every critical technologist
24
25. Background (continued)
ο During risk monitoring, the project manager monitors factors that may provide
an indication of whether a risk is becoming more or less likely
ο Risk management and contingency planning assume that mitigation efforts have
failed and that the risk has become a reality
ο RMMM steps incur additional project cost
ο Large projects may have identified 30 β 40 risks
ο Risk is not limited to the software project itself
ο Risks can occur after the software has been delivered to the user
(More on next slide)
25
26. Background (continued)
ο Software safety and hazard analysis
ο These are software quality assurance activities that focus on the identification and
assessment of potential hazards that may affect software negatively and cause an
entire system to fail
ο If hazards can be identified early in the software process, software design features can
be specified that will either eliminate or control potential hazards
26
27. The RMMM Plan
ο The RMMM plan may be a part of the software development plan (Paragraph
5.19.1) or may be a separate document
ο Once RMMM has been documented and the project has begun, the risk
mitigation, and monitoring steps begin
ο Risk mitigation is a problem avoidance activity
ο Risk monitoring is a project tracking activity
ο Risk monitoring has three objectives
ο To assess whether predicted risks do, in fact, occur
ο To ensure that risk aversion steps defined for the risk are being properly applied
ο To collect information that can be used for future risk analysis
ο The findings from risk monitoring may allow the project manager to ascertain
what risks caused which problems throughout the project
27
28. Seven Principles of Risk Management
ο Maintain a global perspective
ο View software risks within the context of a system and the business problem that is is intended to
solve
ο Take a forward-looking view
ο Think about risks that may arise in the future; establish contingency plans
ο Encourage open communication
ο Encourage all stakeholders and users to point out risks at any time
ο Integrate risk management
ο Integrate the consideration of risk into the software process
ο Emphasize a continuous process of risk management
ο Modify identified risks as more becomes known and add new risks as better insight is achieved
ο Develop a shared product vision
ο A shared vision by all stakeholders facilitates better risk identification and assessment
ο Encourage teamwork when managing risk
ο Pool the skills and experience of all stakeholders when conducting risk management activities
28
29. Summary
ο Whenever much is riding on a software project, common sense dictates risk analysis
ο Yet, most project managers do it informally and superficially, if at all
ο However, the time spent in risk management results in
ο Less upheaval during the project
ο A greater ability to track and control a project
ο The confidence that comes with planning for problems before they occur
ο Risk management can absorb a significant amount of the project planning effortβ¦but
the effort is worth it
29
ο