The document discusses project risk management. It provides an overview of the risk management process, including the key inputs, tools and techniques, and outputs of each process. Specifically, it describes the processes of risk planning, identification, analysis, and monitoring. It defines risk and outlines the objectives of risk management. It also provides details about developing a risk management plan, identifying risks, performing qualitative analysis using tools like probability/impact matrices, and updating the risk register.
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 presentation about Project Risk Management conducted by Mr. Mohamad Boukhari for the project management community in Lebanon during PMI Lebanon Chapter monthly lecture.
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 presentation about Project Risk Management conducted by Mr. Mohamad Boukhari for the project management community in Lebanon during PMI Lebanon Chapter monthly lecture.
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.
In this presentation we look at approach of analyzing risks, we get into details of qualitative risk analysis and quantitative risk analysis. This presentation will help professionals who are preparing for PMP certification exam
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.
In this presentation we look at approach of analyzing risks, we get into details of qualitative risk analysis and quantitative risk analysis. This presentation will help professionals who are preparing for PMP certification exam
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
For your project to be successful you need to think and account for Risk (Opportunities and Threats) beforehand, so you are ready when they happen and you do not panic.
Pmbok 5th planning process group part four _ Project Risk ManagementHossam Maghrabi
This is PMBOK Guide Planning Process Group Part Four. It includes one Knowledge Area - Project Risk Management - with five processes - Plan Risk Management, Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses -.
Critical role of_risk_assessment_in_international_projects_enVyacheslav Guzovsky
Risk is usually applied to negative events, things that might go wrong. Hopefully there are things that we can do, systems that we can put into place that will prevent bad things from happening, or at least if bad things happen, will minimize the likelihood of it being a total catastrophe. Some of these things are obvious, some of them are not so obvious and might sound like common sense, but there is a lot of science to back this up. This science is called risk management. It is a whole profession and may take you a few years to get there. The good news is it is a gradual process, and all we need to know is that it can be a handy tool for our trade and achievable by changing our working habits.
Unit V - Hazard Indentification Techniques.pptxNarmatha D
Job Safety Analysis-Preliminary Hazard Analysis-Failure mode and Effects Analysis- Hazard and Operability- Fault Tree Analysis- Event Tree Analysis Qualitative and Quantitative Risk Assessment- Checklist Analysis- Root cause analysis- What-If Analysis- and Hazard Identification and Risk Assessment
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”
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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.
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
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jimsmith30024@gmail.com
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.
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.
2. Project Risk Management
Knowledge
Area
Process
Initiating Planning Executing Monitoring & Contol Closing
Risk
Plan Risk Management
Identify Risk
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Response
Monitor and Control Risks
Enter phase/
Start project
Exit phase/
End project
Initiating
Processes
Closing
Processes
Planning
Processes
Executing
Processes
Monitoring &
Controlling Processes
3. Project Risk Management
• Risk is an uncertain
event or condition
that, if occurs, has
an effect on at least
one project
objective.
4. – increase the
probability and
impact of positive
events
(opportunities).
– decrease the
probability and
impact of negative
events (threat).
Risk management objectives
5. •address the level of risk a project manager or a key stakeholder is willing
to take when money at stake is compared to the potential payoff.
Risk tolerance
6. Prefers an uncertain outcome and may be willing to pay a penalty to take
a high risk
Risk Seeker
8. Plan Risk Management
• The process of defining how to conduct risk management
activities for a project.
Inputs
1. Project scope statement
2. Cost management plan
3. Schedule management
plan
4. Communication
management plan
5. Enterprise environmental
factors
6. Organizational process
assets
Tools &
Techniques
1. Planning meetings and
analysis
Outputs
1. Risk management plan
9. Planning Meetings and Analysis
- plans for conducting the risk
management activities
- Risk management responsibilities
-templates for risk categories
-definitions of terms such as levels
of risk, and the probability and
impact matrix
10. Risk Management Plan
• Risk management plan describe how risk management will be
structured and performed on the project.
. Methodology (Defines the approaches, tools, and data sources)
• Roles & responsibilities (Defines the lead, support, and risk
management team members)
• Budgeting (Assigns resources, estimates funds needed)
• Timing (when and how often the risk management process )
• Risk categories. (Provides a structure that ensures a comprehensive
process of systematically identifying risks ).
11. Risk Management Plan
-Definition of probability and impact
-Stakeholder tolerances
• Reporting formats how the outcomes of the risk management processes
will be documented, analyzed, and communicated.
• Tracking how risk activities will be recorded and how risk management
processes will be audited.
• Probability and impact matrix (Risks are prioritized according to their
potential implications for having an effect on the project’s objectives.
12. Project Title: Date Prepared:
Methods and Approaches:
Describe the methodology or approach to risk management. Provide information on how each of the
risk management processes will be carried out, including whether quantitative risk analysis will be
performed and under what circumstances.
Tools and Techniques:
Describe the tools, such as a risk breakdown structure, and techniques, such as
interviewing, Delphi technique, etc., that will be used for each process.
Roles and Responsibilities:
Describe the roles and responsibilities for various risk management activities.
Risk Categories:
Identify any categorization groups used to sort and organize risks. These can be used to
sort risks on the risk register or for a risk breakdown structure, if one is used.
Stakeholder Risk Tolerance:
Describe the risk tolerance levels of the organization(s) and key stakeholders on the
project.
Risk management plan
13. Definitions of Probability:
Terms used to
measure probability,
such as Very Low –
Very High, or
.01-1.0.
Describe the ways of measuring probability: the difference between very high and
high probability, etc.. If using a numeric scale, identify the spread between bands of
probability (.05, .1, .2, .4, or .2, .4, .6, .8).
Definitions of Impact by Objective:
Specify terms used
to measure impact,
such as Very Low –
Very High, or
.01-1.0.
Describe the ways of measuring impact on each objectives. Objectives other than the
ones listed here can be used. Define the difference between very high and high
impact on the objective. If using a numeric scale, identify the spread between bands
of impact (.05, .1, .2, .4, or .2, .4, .6, .8). Note that the impacts on individual objectives
may be different if one objective is more important than another.
14. Probability and Impact Matrix:
Risk Management Funding:
Define the funding needed to perform the various risk management activities, such as utilizing expert
advice or transferring risks to a third party.
Contingency Protocols:
Describe the guidelines for establishing, measuring, and allocating both budget contingency and schedule
contingency.
Describe the frequency of conducting formal risk management activities and the timing of any specific
activities.
Frequency and Timing:
Describe how often the risk management process will be audited, which aspects will be audited, and
how discrepancies will be addressed.
Risk Audit Approach
15. Identify Risk
• the process of determining which risks may affect the
project and documenting their characteristics
Inputs
.1 Risk management plan
.2 Activity cost estimates
.3 Activity duration
estimates
.4 Scope baseline
.5 Stakeholder register
.6 Cost management plan
.7 Schedule management
plan
.8 Quality management
plan
.9 Project documents
.10 Enterprise
environmental
factors
.11 Organizational process
assets
Tools &
Techniques
1. Documentation reviews
2. Information gathering
techniques
3. Checklist analysis
4. Assumptions analysis
5. Diagramming
techniques
6. SWOT analysis
7. Expert judgment
Outputs
1. Risk register
16. • Documentation Reviews
-review of project documentation, including
plans, assumptions, previous project files,
contracts, and other information.
-The quality of the plans, as well as consistency
between those plans and the project
requirements and assumptions, can be
indicators of risk in the project.
17. • Information gathering techniques
– Brainstorming
– Delphi technique:
– Interviewing
– Root cause analysis:
19. • .3 Checklist Analysis
- developed based on historical information
- The team should make sure to explore items
that do not appear on the checklist.
- The checklist should be reviewed during
project closure to incorporate new lessons
learned .
20. Diagramming Techniques
• Cause and effect diagrams
useful for identifying causes of risks.
• System or process flow charts.
These show how various elements of
a system interrelate,
and the mechanism of causation
• Influence diagrams. These are
graphical representations of
situations showing causation
influences,
21. Risk Register
List of identified risks.
-the list of identified risks,
-The root causes of those risks
-the fundamental conditions of risks
List of potential responses.
- Potential responses to a risk may
sometimes be identified during
the Identify Risks process.
Include
22. RISK REGISTER
Project Title: Date Prepared:
Risk ID Risk Statement Probability Impact Score Response
Scope Quality Schedule Cost
Description of the risk event or
circumstance.
Likelihood
of
occurrence
Impact on each objective if it does
occur.
Probabili
ty X
impact.
Description of
planned response
strategy to the risk
event.
Revised
Probabil
ity
Revised Impact Revised
Score
Responsible
Party
Actions Status Comments
Scop
e
Quality Schedul
e
Cost
Likelihoo
d after
the
response
strategy.
Revised impact on each
objective after the response
strategy.
Revised
probabili
ty X
impact
Who will follow
through on the
risk and
response.
Actions that need
to be taken to
address the risk.
Open
or
closed.
Any comments that
provide information
about the risk.
23. Perform Qualitative Risk Analysis
• The process of prioritizing risks for further analysis of action by
assessing and combining their probability of occurrence and impact.
Inputs
1. Risk register
2. Risk management plan
3. Project scope statement
4. Organizational process
assets
Tools &
Techniques
1. Risk probability and
impact assessment
2. Probability and impact
matrix
3. Risk data quality
assessment
4. Risk categorization
5. Risk urgency
assessment
6. Expert judgment
Outputs
1. Risk register updates
24. Probability Impact Matrix
• Different matrices can be used for cost, time, scope
• It helps guide risk responses (priority action & response strategies)
25. Risk Data Quality Assessment
A qualitative risk analysis
requires accurate data
. Analysis of the quality of
risk data is a technique to
evaluate the degree to
which the data about risks
are useful for risk
management.
26. Risk Breakdown Structure (RBS)
• Showing risk categorization
• Help to ensure a comprehensive process of systematically
identifying risk to a consistent level of detail
27. Risk Urgency Assessment
-Risks requiring near-term
responses may be considered
more urgent to address.
-the assessment of risk
urgency can be combined
with the risk ranking from the
probability and impact matrix
to give a final risk severity
rating.
28. Risk Register Updates
• Update/add additional information to previous output i.e. Risk
Register, which include:
– Relative ranking/priority
– Risk grouped by categories
– List of risk requiring additional analysis in the near term
– List of risk for additional analysis and response
– Watch-list (non-critical or non-top risks)
– Trends
– Cause of risk requiring particular attention
30. 1-During which stage of Risk planning are risks
prioritized based on probability and -impact?
A-Identify Risks
B-Risk management plan
C-Perform Qualitative risk analysis
D-Perform Quantitative risk analysis
31. 2-Mohamed has joined as the Project Manager of
a project. One of the project documents
available to Mohamed lists down all the risks in
a hierarchical fashion. What is this document
called?
A-Risk Management Plan.
B-List of risks.
C-Risk register
D-Risk Breakdown Structure
32. 3- Project risk management includes all the processes
concerned with conducting risk management planning,
identification, analysis, responses, and monitoring and
control on a project. In this context, all the following
statements about risk are accurate EXCEPT:
A- Risk is an uncertain event or condition
B- Risks have to be identified and properly managed
C- Risk Management should be done throughout the
project
D- Risk has only negative impact on the project objective
33. 4- you have just been assigned as the project
manager for a sizeable engineering project, and you
want to quickly review the projects Procedures for
managing risk . What would be the most helpful in
finding this information?
A- a risk register
B- a risk management plan
C- environment process assets
D- a risk impact matrix