SBU 505 INTRODUCTION TO PROJECT MANAGEMENT MODULE 7

SBU 505 INTRODUCTION TO PROJECT MANAGEMENT MODULE 7 – PROJECT RISK MANAGEMENT I. III. IV. V. VI. Risk Plan Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Response Monitor and Control Risks

PROJECT RISK MANAGEMENT • The Processes of conducting risk management planning, identification, analysis, response planning, and monitoring and control on a project. • Consists of six project risk processes: i. iii. iv. v. vi. Plan Risk Management – The process of defining how to conduct risk management activities for a project. Identify Risks – The process of determining which risks may affect the project and documenting their characteristics. Perform Qualitative Risk Analysis – The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact. Perform Quantitative Risk Analysis – The process of numerically analyzing the effect of identified risk on overall project objectives. Plan Risk Response – The process of developing options and actions to enhance opportunities and to reduce threats to project objectives. Monitor and Control Risks – The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

PROJECT RISK MANAGEMENT I. Risk Plan Management • Defined: The process of defining how to conduct risk management activities for a project. • Inputs: Project Scope Schedule Enterprise Environmental Factors Organizational Process Assets • Tools and Techniques: • • Cost Management Plan Communications Plan Risk Planning Meetings and Analysis Outputs: • Risk Management Plan Methodology Budgeting Risk Categories Probabilities and Impact Matrix Revised Stakeholder Tolerances Reporting Formats Roles and Responsibilities Timing Risk Probabilities and Impacts Tracking

PROJECT RISK MANAGEMENT II. Identify Risks • Defined: The process of determining which risks may affect the project and documenting their characteristics. • Inputs: Risk Mgmt. Plan Activity Durations Cost Mgmt. Plan Schedule Project Documents Organizational Process Assets • Activity Cost Estimates Scope Baseline Stakeholder Register Quality Plan Enterprise Environmental Factors Tools and Techniques: Documentation Reviews Checklist Analysis Expert Judgement Assumption Analysis SWOT Analysis Information Gathering Techniques: Brainstorming, Root Cause Analysis, Delphi Technique, Interviewing Diagramming Techniques: Cause and Effect Diagrams, System or Process Flow Charts, Influence Diagrams • Outputs: • Risk Register: Consisting of List of Identified Risks and List of potential responses

PROJECT RISK MANAGEMENT III. Perform Qualitative Risk Analysis • Defined: The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact. • Inputs: • • • Tools and Techniques: • • Risk Register Risk Management Plan Project Scope Statement Organizational Process Assets Risk Probability and Impact Assessment Probability and Impact Matrix Risk Data Quality Assessment Risk Categorization Risk Urgency Assessment Expert Judgement Outputs: • Risk Register Updates: Ranking or prioritizing project risks Causes of risks List of risks requiring further analysis Grouping of risk by category Listing of risk requiring near-term responses Watch list of low-priority risks

PROJECT RISK MANAGEMENT IV. Perform Quantitative Risk Analysis • Defined: The process of numerically analyzing the effect of identified risk on overall project objectives. • Inputs: • • • Tools and Techniques: • • Risk Register Risk Management Plan Cost Management Plan Schedule Management Plan Organizational Process Assets Data Gathering and Representation Techniques Quantitative Risk Analysis and Modeling Techniques Sensitivity Analysis Modeling and Simulation Expected Monetary Value Analysis Expert Judgement Outputs: • Risk Register Updates: • • Probabilistic Analysis of Project Probability of Achieving Cost/Time Objectives Prioritized list of Quantified Risks Trends in Quantitative Risk Analysis Results

PROJECT RISK MANAGEMENT V. Plan Risk Response • Defined: The process of developing options and actions to enhance opportunities and to reduce threats to project objectives. • Inputs: Risk Register, Risk Management Plan • Tools and Techniques: • Strategies for Negative Risks or Threats: Avoid • Transfer Mitigate Strategies for Positive Risks or Opportunities Exploit Share Enhance Contingent Response Strategies • Expert Judgement • • Outputs: Risk Register Updates • Risk-Related Contract Decisions • Project Plan Updates • Project Document Updates • Accept

PROJECT RISK MANAGEMENT VI. Monitor and Control Risks • Defined: The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project. • Inputs: Risk Register Work Performance • Project Plan Information Performance Reports Tools and Techniques: Risk Reassessment Variance and Trend Analysis Reserve Analysis • Risk Audits Technical Performance Measurements Status Meetings Outputs: Risk Register Updates Organizational Process Assets Updates Change Requests Project Plan Updates Project Document Updates

SBU 505 INTRODUCTION TO PROJECT MANAGEMENT MODULE 7 – PROJECT RISK MANAGEMENT I. III. IV. V. VI. Risk Plan Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Response Monitor and Control Risks