The risk identification process cost estimates assumptions

Project Risk Management

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Aim


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	How to plan risk management
	How to identify risk and plan response to the identified risk
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Risk Management - Definitions
	Risk is an uncertain event or condition that, if it occurs, has an effect on at





	If a person develops cancer, it is no longer a risk, but a health issue. Now

	the uncertainty became certain.



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	Known Risks – Project management team is aware of this risks and can





gluten allergy (known risk). Product label shall contain warning against any

	possible allergy.

	Negative Risks or Threats – If occurs will negatively affect objectives Positive Risks or Opportunities - If occurs will positively affect objectives

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	return or some not. This is called Risk Tolerances. To be successful, individuals or organizations must explicitly express the

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according to this.

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3. Perform Qualitative risk analysis: prioritizing risks for further analysis or action based by assessing and combining their probability of occurrence and impact

4. Perform Quantitative risk analysis: numerically estimating the effects of the identified risks on overall project objectives

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PMP ® Exam Preparation Course

11.1 Plan Risk Management

Inputs		Outputs

1.
2.	environmental factors	analysis
2.	Organizational process
3.
3.
4.	Cost management plan
5.	Schedule Management
6.

	Management Plan


	Project management team decides how to approach risks, how the risk will

	be handled and monitored in the project. All policies related to risk management will be decided now Decisions on up to which level of rigorousness shall be applied to risk

	All further risk activities shall comply with this management plan unless

changed through change management plan.

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1.
	Team conducts meeting with various stakeholders to develop plan how to

	handle risks for a specific project Attendees should include: The project manager, project team leaders, key


Plan	9

11.1 Plan Risk Management : Output

 Budget and schedule (Include activities for risk management in schedule and

with risk management activities)

 Risk categories (Different categories of risks associated with the specific

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RBS

 Example for Impact on Cost

 High – If more than 10%

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11.1 Plan Risk Management : Output

 Timing - Team defines timing of risk activities and how often this shall be





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		A monthly review of risks shall be carried out irrespective of above.
	Revised Stakeholder’s Tolerances – Stakeholders risk tolerances may

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11.2 Identify Risks
	Now the plan is ready, team proceed with identification of all possible risks to

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	Identification and documentation of risks (Like RBS) shall follow the

	procedure and format decided by team in Risk Management Plan.

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1.	1.		Outputs
1.	1.	Documentation reviews	Risk register
2.	2.	Documentation reviews

3.	Risk management plan	3.	Checklist analysis
4.		4.
5.	Activity Duration Estimates	5.
6.		6.	SWOT analysis
7.		7.	SWOT analysis
7.	Stakeholder register
8.	Stakeholder register
8.
9.
9.	Schedule management plan
10.
11.


1.	Risk Management Plan :The risk management plan is one of the key inputs to

	Activity Cost Estimates (Assumptions, Errors) Activity Duration Estimates (Assumptions, Errors) Scope Baseline (Project Assumptions & WBS) Stakeholder Register Cost Management Plan Schedule Management Plan Quality Management Plan

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 Assumptions Log

 Work performance reports

11. Organizational Process Assets : Project files ,organizational and project process controls, Risk statement templates, and lessons learned .

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 Constraints and assumptions should be reviewed, considered, and

analyzed for risks.

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11.2 Identify Risks – Tools & Techniques

2. Information Gathering Techniques

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 A multidisciplinary team, hosted by a project facilitator, can also complete brainstorming.

 This approach can include subject matter experts, project team members, customers, and other stakeholders who

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