Project risk management involves identifying, analyzing, and responding to risks that could impact a project's objectives. The key processes include risk management planning, identification, analysis, response planning, and monitoring and control. Project risks can come from various sources like financial, market, operational, political, and contractual factors. An effective risk management plan outlines the methodology, roles, budget, risk categories, and documentation process. Mitigation strategies like avoidance, transference, and contingency planning help reduce risks and keep projects on track.

1. INTRODUCTION TO
PROJECT RISK
MANAGEMENT
Şafak EBESEK
Architect, Phd Candidate, ITU
safak@hotmail.com

2. Management
Strategic
Management
Operational
Risk Management Management

3. RISK
Project Risk is an uncertain event or condition, that if it occurs,
has a positive or negative effect on at least one project objective
such as time, cost, scope or quality. (PMBOK)
Processes include:
1. risk management planning
2. risk identification
3. qualitative risk analysis
4. quantitative risk analysis
5. risk response planning
6. risk monitoring and control

4. Sample Categories of Risk
Financial: Capital risk, currecy Contractual: Associated
risk, liquidity risk, credit risk, with the failure of
interest rate risk contractors to deliver devices
Market: Fundamental change or products to the agreed
in supply and demand cost and specification.
functions or global prices for Operational: Relating to
all sources existing operations – both
Economic: Ability to attract current delivery and
and retain staff in the labour building and maintaining.
and commodities market; Political: Change of
effect of global economy on government, cross cutting
national economy. policy decisions

5. Topics Addressed in a Risk
Management Plan
Methodology
Roles and responsibilities
Budget and schedule
Risk categories
Risk probability and impact
Risk documentation

6. Project Risk Management
Scope Time
RISK RISK
Stakeholder
Needs and
Expectations
Cost Quality
RISK RISK

7. Project Risk Management
What are the risks to the success of the project?
What's the plan to mitigate them?
Who's accountable for these mitigations?
How can we tell these mitigations are working?
How much will these mitigations cost and how long
will they take?
What resources will we need to perform these
mitigations?

8. Overlap of Process Groups in a Phase
Executing Processes
Level of Activity
Planning Processes Closing
Initiating Processes
Phase Controlling Processes
Time

9. PM Knowledge Areas & Process Groups
PM Process Initiating Process Planning Process Group Executing Process Monitoring & Controlling Closing
Groups / Group Group Process Group Process
Knowledge Area Group
Processes
Project Develop Project Develop Project Management Direct and Manage Project Monitor and Control Project Close Project
Management Charter Plan Execution Work
Integration Develop Prelim Project Integrated Change Control
Scope Statement
Project Scope Scope Planning Scope Verification
Management Scope Definition Scope Control
Create WBS
Project Time Activity Definition & Sequencing Schedule Control
Management Resource Estimating
Duration Estimating
Schedule Development
Project Cost Cost Estimating Cost Control
Management Cost Budgeting
Project Quality Quality Planning Perform Quality Assurance Perform Quality Control
Management
Project HR Human Resources Planning Acquire Project Team Manage Project Team
Management Develop Project Team
Project Communications Planning Information Distribution Performance Reporting
Communications Manage Stakeholders
Management
Project Risk Risk Management Planning Risk Monitoring and Control
Management Risk Identification
Qualitative / Quantitative Risk
Analysis
Risk Response Planning
Project Plan Purchases and Acquisitions Request Seller Responses Contract Administration Contract
Procurement Plan Contracting Select Sellers Closure
Management

10. Risk Management Process
Start
Identify Risk
Monitor and
Control Risk
Analyze Risk
Respond
to Risk
Finish

11. Risk Response Planning
Tools & Techniques
Avoidance : Identified risks are avoided
through a different course of action
Transference : Transfer of risk to another party
through the use of contracts
Mitigation : Steps are taken to reduce the
occurrence or impact of stated risks
Acceptance : Risks are accepted and
contingency strategies are planned

12. Contingency and Fallback Plans,
Contingency Reserves
Contingency plans are predefined actions that the project
team will take if an identified risk event occurs.
Fallback plans are developed for risks that have a high
impact on meeting project objectives, and are put into effect
if attempts to reduce the risk are not effective.
Contingency reserves or allowances are provisions held
by the project sponsor or organization to reduce the risk of
cost or schedule overruns to an acceptable level.

13. Top Ten Risk Item Tracking
Top Ten Risk Item Tracking is a qualitative risk
analysis tool that helps to identify risks and maintain an
awareness of risks throughout the life of a project.
Establish a periodic review of the top ten project risk
items.
List the current ranking, previous ranking, number of
times the risk appears on the list over a period of time,
and a summary of progress made in resolving the risk
item.

14. Results of Good Project Risk
Management
Unlike crisis management, good project risk
management often goes unnoticed
Well-run projects appear to be almost effortless, but
a lot of work goes into running a project well
Project managers should strive to make their jobs
look easy to reflect the results of well-run projects

15. INTRODUCTION TO
PROJECT RISK
MANAGEMENT
Şafak EBESEK
Architect, Phd Candidate, ITU
safak@hotmail.com