bsbpmg517a presentation 5
TRANSCRIPT
PRESENTATION OBJECTIVES
At the end of this presentation you will know about:
• Documentation of risk-analysis outcomes for inclusion in the risk
register and risk-management plan
• Identifying and documenting existing risk controls
QUALITATIVE RISK ANALYSIS OUTPUTS
Project documents that may be updated as a result of qualitative risk
analysis include, but are not limited to:
• Risk register updates: as new information becomes available
through the qualitative risk assessment, the risk register is
updated. Updates to the risk register many include assessments of
probability and impacts for each risk, risk ranking, or risk
categorisation. An example risk register is provided on the
following page. This may also be referred to as a Risk
Management Matrix.
RISK REGISTER (RISK MANAGEMENT MATRIX)
Risk Definition Risk Analysis Risk Control
Risk #
Pri
Risk Description
Causes Consequences Likelihood Impact Risk Rating Risk Control Strategy
Owner Expected occurrence
Date / Phase
Expected Retirement Date / Phase
Status
1
Risk Definition Risk Analysis Risk ControlRisk #
PriRisk
DescriptionCauses Consequences Likelihood Impact Risk
RatingRisk Control Strategy Owner Expected
occurrence Date / Phase
Expected Retirement Date / Phase
Status
Eg
Fence will not be straight
Insufficient care taken during alignment. Fence foundations sink after installation
Fence will look bad. Damage to company reputation. Customer refuses to pay for fence Possible Major Extreme
Include hold points in project inspection and test plan that requires review and sign off by the project Client, Foreman and Project Manager;a - at completion of markoutb - prior to pouring foundation
Quality Manager
Foundation digging & pouring from 15th Jan 2014
30th Jan 2014
Open
ASSUMPTION LOG
As new information becomes available through the qualitative risk
assessment project assumptions could change. The assumption log
needs to be revisited to accommodate this new information.
Assumptions LogProject Project # Project manager Sponsor
Updated
ID Description Comments Type StatusDate
Entered1 2 3
QUANTITATIVE RISK ANALYSIS OUTPUTS
Project documents that may be updated as a result of quantitative
risk analysis could include:
• Deliverable milestones
• Project budget
• Project schedule baselines
• Risk register
The risk register and assumptions log form part of the overall risk-
management plan.
RISK MANAGEMENT PLAN
To ensure a comprehensive risk management plan, judgment and
expertise should be considered from groups or individuals who have
specialised training and knowledge on the project subject. This may
include:
• Project stakeholders
• Project managers
• Subject matter experts and specialists
• Industry groups and consultants
• Professional and technical associations
RISK MANAGEMENT PLAN WILL INCLUDE• Methodology - the approaches, tools and data sources that will be used to perform
risk management on the project
• Roles and responsibilities - defines the risk management team and their individual
responsibilities
• Budgeting - estimation of funds required, based on assigned resources. This is to be
included in the cost baseline
• Timing - defines how often the risk management process will be performed during the
project life cycle, schedules risk management activities so they can be included in the
project schedule.
• Risk categories - how risks will be grouped (risk breakdown structure)
• Definitions of risk probability and impact
• Probability and impact matrix
• Stakeholder tolerances
• Reporting format
• Tracking - strategies for recording and storing risk activity documentation
ESTABLISH RISK TREATMENTS AND CONTROLS
Risk controls:
A control is any measure or action that modifies risk. Controls include
any policy, procedure, practice, process, technology, technique,
method or device that modifies or manages risk. Risk treatments
become controls, or modify existing controls once they have been
implemented.
• Risk reviewing is to identify new risks, reassess risks likelihood,
impact and consequence
• Risk audit is the process of revising your project risk management
activities to ensure that you are effectively performing risk
management in accordance with your plan
RISK TREATMENT
Risk treatment is a risk modification process. It involves
selecting and implementing one or more treatment options.
Once a treatment has been implemented, it becomes a control
or it modifies existing controls. You have many treatment
options. You can avoid risk, you can reduce risk, you can
remove the source of risk, you can modify the consequences,
you can change the probabilities, you can share the risk with
others, you can simply retain the risk or you can even increase
the risk in order to purse an opportunity.
VARIANCE AND TREND ANALYSIS
Many control processes employ variance
analysis to compare the planned results to
the actual results. It is used to forecast any
potential cost and/or schedule deviations in
the project.
TECHNICAL PERFORMANCE MEASUREMENT
Compares technical accomplishments during project
execution to the project management plan’s
schedule. It is required that objectives will be
defined through quantifiable measures of technical
performance, in order to compare actual results
against targets.
RESERVE ANALYSIS
Compares the amount of remaining
contingency reserves (time and cost) to the
amount of remaining risks in order to
determine if the amount of remaining
reserves is enough.
STATUS MEETINGS
Project risk management should be an
agenda item at periodic status meetings, as
frequent discussion about risk makes it more
likely that people will identify risk and
opportunities or advice regarding responses.
DOCUMENT RISK CONTROLS
Existing risk controls will be documented in the Risk
Management Plan and Risk Register.
These risk documents may be updated as a result of the
outcomes of risk reassessments, risk audits and periodic risk
reviews. These outcomes will include new risks, update to
probability, impact, priority, response plans, and ownership.
The risk documents will also be updated from outcomes of
organisational projects “lessons learnt”.