10 project risk management

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B. M. Shahrier Majumder, PMP

PMPExam Preparation
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Project Risk Management


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Learning Objectives

Upon completion of this topic you will learn about

The processes, activities and documentation items for ProjectCommunication Management

Elements (and deliverables) for Project Risk Management

Tools and techniques of the key activities of the Project RiskManagement

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Risk Management

Includes the processes of conducting risk management planning,

identification, analysis, response planning, and monitoring and control

of a project.

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Key Activities of Risk Management

Plan Risk Management: The process of defining how to conduct riskmanagement activities for a project.

Identify Risks: The process of determining which risk may affect theproject and documenting their characteristics.

Perform Qualitative Risk Analysis: The process of prioritizing risks forfurther analysis or action by assessing and combining their probabilityof occurrence and impact.

Perform Quantitative Risk Analysis: The process of numericallyanalyzing the effect of identified risks on overall project objectives.

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Key Activities of Risk Management

Plan Risk Responses: The process of developing options andactions to enhance opportunities and to reduce threats to projectobjectives.

Monitor and Control Risk: The process of implementing risk response

plans, tracking identified risks, monitoring residual risks, identifiednew risks, and evaluating risk process effectiveness throughout theproject.

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Planning Risk Management | Data Flow Diagram

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Planning Risk Management

Inputs Tools & Techniques Outputs

Project scope statement

Cost management plan

Schedule managementplan

Communicationmanagement plan

Enterprise environmentalfactors

Organizational processassets

Project meetings andanalysis

Risk management plan

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Plan Risk Management > Outputs

Risk Management Plan

Methodology

Roles and responsibilities

Budgeting

Timing

Risk Categories

Definition of Risk Probability and Impact

Probability and Impact Matrix

Reporting Formats

Tracking

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Identify Risks | Data Flow Diagram



Identify Risks



Activity cost estimates

Activity duration estimate

Scope baseline

Stakeholder register


Schedule managementplan

Quality management plan

Enterprise environmentalfactors

Organizational process

assets

Documentation reviews

Information gatheringtechniques

Checklist analysis

Assumption analysis

Diagramming techniques

SWOT Analysis

Expert judgment

Risk register



Identify Risks > Tools and Techniques

Information gathering techniques

Brainstorming

Delphi technique

Interviewing

Root cause analysis

Diagramming techniques

Cause-effect diagrams

System or process flow charts

Influence diagrams

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Identify Risks > Outputs

Risk register

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S/

N

Risk

Description

Category Probability

P = 1 to 10

Impact

I = 1 to 10

Exposure

E = P X I

Mitigation

Plan

Contingency

Plan1

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Perform Qualitative Risk Analysis | DFD



Perform Qualitative Risk Analysis



Risk register

Project scope statement

Organizational process

assets

Risk probability and impactassessment

Probability and impactmatrix

Risk data qualityassessment

Risk categorization

Risk urgency assessment

Expert judgment

Risk register updates



Perform Qualitative Risk Analysis > Tools and

Techniques

Probability and Impact Matrix

Risk Categorization

Source of risk

Project effected Project phase

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Perform Quantitative Risk Analysis | DFD



Perform Quantitative Risk Analysis



Risk register


Schedule management

planOrganizational processassets

Data gathering andrepresentation techniques

Quantitative risk analysisand modeling techniques

Expert judgment




Perform Quantitative Risk Analysis > Tools and

Techniques

Data gathering and representation technique

Interviewing

Probability distribution

Quantitative risk analysis and modeling techniques Sensitivity analysis

Expected monetary value analysis

Modeling and simulation

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Plan Risk Response | Data Flow Diagram



Plan Risk Response



Risk register

Strategies for negativerisks or threats

Strategies for positive riskor opportunities

Contingent responsestrategies

Expert judgment


Risk related contractdecision

Project management plan

updatesProject document updates



Plan Risk Response > Tools and Techniques

Strategies for Negative risk or threats

Avoid (e.g. extending schedule, reduce scope)

Transfer (e.g. fixed price contract)

Mitigate (e.g. more testing, choose more stable supplier)

Accept

Strategies for Positive risk or opportunities

Exploit (e.g. assign most talented resources in a project/task)

Share (e.g. joint venture)

Enhance (e.g. adding more resources)

Accept

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Monitoring & Control Risks | Data Flow Diagram


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Monitoring & Control Risks


Risk register

Project management plan

Work performanceinformation

Performance reports

Risk reassessment

Risk audit

Variance and trend analysis

Technical performance

measurementReserve analysis

Status meetings


Organization processassets updates

Change requests

Project management planupdates

Project document updates


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Questions

[[email protected]]

http://bd.linkedin.com/in/shahrier
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