Risk Management

Project Risk and IntegrationPlanning
PMBOK Guide 5th edition

Session 7
2016
1
Session Agenda:
11.1 Plan Risk Management

11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Response
4.2 Develop Project Mangement Plan
2
3
Risk Definition:
Risk: is uncertain event that has a positive or negative effect on at least one of the
project objectives (scope, schedule, budget, quality).
Threat:
• A project risk that has a negative effect.
• Project Managers will look for ways to eliminate or reduce the effects of a threat.
Opportunity:
• A project risk that has a positive effect.
• Project Managers will look for ways to enhance, exploit, or share the effects of an
opportunity.
Risk Types:
• Business: Risk of a gain or loss
• Pure (insurable): only a risk of loss
4
The Risk Event Graph
5
11- Project Risk Management
*Project Risk Management includes the processes of conducting risk
management planning, identification, assessment and analysis, response
planning, and controlling risk on a project.
The objectives of project risk management are to increase the likelihood and
impact of positive events, and decrease the likelihood and impact of
negative events in the project.
*It runs in parallel to the other PM activities.
•These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management
Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc., 2013. 6
Project Risk Management Is Integral To Project Management.
7
Integration of risk with other project management functions
Integration
Scope Life cycle Communication
Environ. Variables
Expectations Data Exchange
Accuracy
Quality Requirements Project Availability

HR
Standards Productivity
Risk
Time Objectives Services
Cost Performance
Objective
Time Procurement
Cost
8
Risk Management Benefits
A proactive attempt to recognize and manage internal events and external

threats that affect the likelihood of a project’s success.
-Reduces surprises and negative consequences.

-Prepares the project manager to take advantage of positive risks and
opportunities.
-Provides better control over the future.
-Improves chances of reaching project performance objectives within budget and
on time.
*The project team should review project documents and understand the organization’s
and the sponsor’s approaches to risk.
*The level of detail of the Risk Management Plan will vary with the needs of the
project.
9
The Risk attitudes of Organizations and Stakeholders may be influenced by:
*Risk appetite, The degree of uncertainty an entity is willing to take on in anticipation
of a reward.
*Risk tolerance, The amount of risk that an organization or individual will withstand
(bear).
*Risk threshold, Measure of the level of uncertainty above which action
must be taken to address risks proactively .
*Below that risk threshold, the organization will accept the risk.
Risk Utility
 Risk utility or risk tolerance is the amount of satisfaction or pleasure
received from a potential payoff.
Function and Risk Preference
Risk-Averse Risk-Neutral Risk-Seeking
utility utility utility
Potential payoff Potential payoff Potential payoff
11
Initiating Process Planning Process Executing Monitoring &Controlling Closing Process
Group Group Process Group Process Group Group
12
The Project Risk Management processes include the following:
11.1 *Plan Risk Management—The process of defining HOW to conduct

risk management activities for a project.
11.2 *Identify Risks—The process of determining which risks may affect

the project and documenting their characteristics.
11.3 *Perform Qualitative Risk Analysis—The process of prioritizing

risks for further analysis or action by assessing and combining their
probability of occurrence and impact.
11.4 *Perform Quantitative Risk Analysis—The process of numerically
analyzing the effect of identified risks on overall project objectives.
11.5 *Plan Risk Responses—The process of developing options and
actions to enhance opportunities and to reduce threats to project
objectives.
11.6 *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.
11.1 Plan Risk Management
Tools & Techniques
Inputs
.1 Project management plan .1 Analytical techniques

Outputs
.2 Project charter .2 Expert judgment

Risk management
.3 Stakeholder register .3 Meetings
plan
.4 Enterprise environmental
factors
.5 Organizational process
Figure 11-2. Plan Risk Management: Inputs, Tools &
assets Techniques, and Outputs
*Plan Risk Management - the process of defining HOW to conduct risk management
activities for a project.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 11-2, Page 313. 15
Organizational Process Assets
• Risk categories,
• Risk statement formats and Standard templates,
• Roles and responsibilities,
INPUTS
• Authority levels for decision making, and
• Lessons learned.
16
*Risk Management Plan. A component of the project management
plan that describes HOW risk management activities will be structured and
performed.
The Risk Management Plan describes :
•Methodology. Defines the approaches, tools, and data sources to be used
OUTPUTS
•Roles and responsibilities. Defines who will do what :the lead, support, and
risk management team, assigns people to these roles.
•Budgeting. Include resources and estimates costs needed for risk
management processes and activities
•Timing. Defines when and how often the risk management processes will
be performed
•Risk categories.
•These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management 17
Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc., 2013.
•Definitions of risk probability and impact.
General definitions of Probability levels and Impact levels are tailored to the
individual project during the Plan Risk Management process for use in the
OUTPUTS
Perform Qualitative Risk Analysis process
• Revised stakeholders’ tolerances.
• Reporting formats and templates: what goes into the report
• Tracking documents: Auditing and reporting of risk process for tracking
risks and time scale for action taken throughout the project
18
OUTPUTS
Table 11-1. Definition of Impact Scales for Four Project Objectives
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, 19
Project Management Institute, Inc., 2013, Table 11-1, Page 318.
11.2 Identify Risks
*Identify Risks - the process of determining which risks may affect the
project and documenting their characteristics.
Performed on a regular basis; addressing internal and external risks
Internal –project team has control/influence over
External – beyond project team’s control
*Participants - in risk identification activities can include : project manager, project
team members, risk management team (if assigned), subject matter experts,
customers, end users, ..
*Risk Identification is an iterative process .
11.2 Identify Risks
Inputs Tools & Techniques
.1 Risk management plan .1 Documentation reviews

.2 Cost management plan Outputs
.2 Information gathering
.3 Schedule management
plan techniques Risk register
.4 Quality management plan
.3 Checklist analysis
.5 Human resource
management plan .4 Assumptions analysis
.6 Scope baseline
.5 Diagramming techniques
.7 Activity cost estimates
.8 Activity duration estimates .6 SWOT analysis
.9 Stakeholder register
.7 Expert judgment
.10 Project documents
.11 Procurement documents
.12 Enterprise environmental Figure 11-5. Identify Risks: Inputs, Tools & Techniques,
factors and Outputs
assets
Information Gathering Techniques
*Brainstorming. A general data gathering and creativity technique that can
be used to identify risks, ideas, or solutions to issues by using a group of team
members or subject matter experts.
T&T
*Interviewing. Interviewing experienced project participants, stakeholders,
and subject matter experts can identify risks. (one-on-one conversation)
*Delphi Technique. An information gathering technique used as a way to reach
a consensus of anonymous experts on a subject. A facilitator uses a
questionnaire to solicit ideas about the important project points related to the
subject. The responses are summarized and are then recirculated to the
experts for further comment.
T&T
*Root-cause analysis is a specific technique used to identify a problem,
discover the underlying causes that lead to it, and develop appropriate
actions.
*Checklist Analysis. A technique for systematically reviewing materials using a
list for accuracy and completeness.
*The lowest level in the RBS can be used as a risk checklist.
. The Risk Breakdown Structure (RBS) by category
*Assumptions Analysis. A technique that explores the accuracy of
assumptions and identifies risks to the project from inaccuracy, inconsistency,
or incompleteness of assumptions.
*Diagramming Techniques
• Cause and effect diagrams
T&T
• Flow charts.
*SWOT Analysis. Analysis of strengths, weaknesses, opportunities, and
threats of an organization, project, or option.
This technique ensures examination of the project from each of the SWOT
perspectives, to increase the range of considered risks.
How to conduct SWOT Analysis?
Risk Register Contents
*Risk Register. A document in which the results of risk analysis and potential response
planning are recorded.
 An identification number and name for each risk event.
 A rank for each risk event.
 A description of each risk event.
 The category under which each risk event falls.
 The root cause of each risk.
 Triggers for each risk; triggers are indicators or symptoms of actual risk events.
 Potential responses to each risk.
 The risk owner or person who will own or take responsibility for each risk.
 The probability and impact ( P. and I. )of each risk occurring.
 The status of each risk.
27
Sample Risk Register
No. Rank Risk Description Category Root Triggers Potential Risk Probability Impact Severity Status
Cause Responses Owner
R44 1
R21 2
R7 3
 Periodic update and review

(iterative process throughout the project)
28
*Perform Qualitative Risk Analysis -the process of prioritizing risks

for further analysis or action by assessing and combining their
Probability of occurrence and Impact.
Tools & Techniques
Inputs
.1 Risk management plan .1 Risk probability and impact

Outputs
.2 Scope baseline assessment

.3 Risk register .2 Probability and impact matrix
updates
.4 Enterprise .3 Risk data quality assessment
environmental factors .4 Risk categorization
.5 Organizational process .5 Risk urgency assessment
assets .6 Expert judgment
Figure 11-8. Perform Qualitative Risk Analysis: Inputs,

Tools & Techniques, and Outputs
Project Management Institute, Inc., 2013, 11-8, Page 328. 30
Risk Probability and Impact Assessment
• Risk probability assessment investigates the likelihood that each specific risk will occur.
Risk impact assessment investigates the potential effect on a project objective such as
schedule, cost, quality, or performance
• Probability and impact are assessed for each identified risk.
• Project team members and knowledgeable persons external to the project are included.
T&T
• Risk severity = Probability * Impact
• Probability and Impact Matrix: this chart lists the relative probability of a risk occurring on
one side of a matrix or axis on a chart and the relative impact of the risk occurring on the
other.
• The specific combinations of probability and impact that lead to a risk being rated as
"high," "moderate," or "low"
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth 31
Edition, Project Management Institute, Inc., 2013, Page 330.
Calculating Severity
Risk Probability Impact Severity

R1 Unexperienced Staff 2 5 10
R2 Late delivery of 5 5 25
hardware
R3 Communication and 4 3 12
Networks problem
R4 1 4 4
R5 3 3 9
R6 4 5 20
Risk severity = probability * impact
*The level of probability for each risk and its impact on each objective is evaluated
during the interviews or meetings during Risk Identification process.
32
Probability and Impact Matrix
Qualitative risk analysis are often used for quick evaluations and screening.
Impact
Probability
of Occurrence Very Low Low Moderate High Very High
Very Low
Low
Moderate
High
Very High
Low Risk Medium Risk High Risk

4
Figure 11-10. Probability and Impact Matrix
T&T
Project Management Institute, Inc., 2013, Figure 11-10, Page 331.
*Risk Data Quality Assessment A technique to evaluate the degree to which
the data about risks is useful for risk management.
The degree to which the risk is understood and the accuracy, quality, reliability,
and integrity of the data about the risk.
T&T
*Risk Categorization. Organization by sources of risk (e.g., using the RBS), to
determine the areas of the project most exposed to the effects of uncertainty.
*Risk Urgency Assessment. Review and determination of the timing of actions

that may need to occur sooner than other risk items.
Project Documents Updates
Risk register updates.
Assumptions log updates.
OUTPUTS
36
*Perform Quantitative Risk Analysis - the process of numerically
analyzing the effect of identified risks on overall project objectives.
• Perform Quantitative Risk Analysis is performed on risks that have

been prioritized by the Perform Qualitative Risk Analysis process
as High Risks
*Primavera and Pert Master are software programs used for this analysis.
This process uses techniques such as:
* Monte Carlo Simulation and Decision Tree Analysis to:
•Quantify the possible outcomes for the project and their probabilities
•Assess the probability of achieving specific project objectives
•Identify risks requiring the most attention by quantifying their relative

contribution to overall project risk
•Identify realistic and achievable cost, schedule, or scope targets, given the
project risks
•Determine the best project management decision when some conditions

are uncertain.
38
Tools & Techniques
Inputs
.1 Risk management plan .1 Data gathering and

Outputs
.2 Cost management plan representation techniques

.3 Schedule management .2 Quantitative risk analysis
updates
plan and modeling techniques
.4 Risk register .3 Expert judgment
factors
Figure 11-11. Perform Quantitative Risk Analysis: Inputs,
.6 Organizational process Tools & Techniques, and Outputs
assets
Data Gathering and Representation Techniques
Interviewing. Interviewing to quantify the probability and impact of risks
on project objectives. The information needed depends upon the type of
probability distributions that will be used.
T&T
Probability distributions. Continuous probability distributions represent
the uncertainty in values, such as durations of schedule activities
and costs of project components to create forecasts and trend analysis.
40
T&T
Project Management Institute, Practice Standard For Scheduling,– Second Edition, Project Management Institute, Inc., 41
2011, Figure 2-6, Page 17.
Cost Risk Simulation Results
Cumulative Chart
100%
90%
75%
Probability
50%
25%
15%
Contingency
0%
$30m $33m $36m $39m

$37.5m
Cost 42
Quantitative Risk Analysis and Modeling Techniques.
*Sensitivity Analysis. A quantitative risk analysis and modeling technique used
to help determine which risks have the most potential impact on Project
Objectives.
It scans all variables and factors of the project risks to rank them by their
T&T
severity affecting the objective being examined when all other uncertain
elements are held at their baseline values.
Ex: Factors with the greatest impact on total cost variation.
*The typical display of results is in the form of a tornado diagram.
Sensitivity Analysis
Example of Tornado Diagram ranking project Risks by Severity

4
“Expected monetary value analysis. Expected monetary value (EMV)
analysis is a statistical concept that calculates the average outcome when
the future includes scenarios that may or may not happen (i.e., analysis
under uncertainty).
*The EMV of opportunities are generally expressed as positive values,
T&T
while those of threats are expressed as negative values.
EMV for a project is calculated by multiplying the value of each possible
outcome by its probability of occurrence and adding the products
together.
*A common use of this type of analysis is a decision tree analysis”

Decision Trees and Expected Monetary Value (EMV)
• A decision tree is a diagramming analysis technique used to help select

the best course of action in situations in which future outcomes are
uncertain.
• Expected monetary value (EMV) is the product of a risk event probability

and the risk event’s monetary value.
• You can draw a decision tree to help find the EMV.
4
Expected Monetary Value (EMV) example to select one of two projects
47
Risk register updates could include:
• Probabilistic analysis of the project.
OUTPUTS
• Probability of achieving cost and time objectives.
• Prioritized list of quantified risks.
• Trends in quantitative risk analysis results.
48
11.5 Plan Risk Responses
*Plan Risk Responses - the process of developing options and actions
to enhance opportunities and to reduce threats to project
objectives.
•Risk Response Planning should address Risks by their priority, Inserting
resources and activities into the budget, schedule, and project management
plan, as needed.
•Planned risk responses must be appropriate to the significance of the risk,
•Cost effective in meeting the challenge,
• Timely, realistic within the project context,
• Agreed upon by all parties involved,
•and Owned by a responsible person.
50
11.5 Plan Risk Responses
.1 Risk management plan .1 Strategies for negative Outputs

.2 Risk register risks or threats
.2 Strategies for positive .1 Project management
risks or opportunities plan updates
.3 Contingent response .2 Project documents
strategies updates
.4 Expert judgment
Figure 11-18. Plan Risk Responses: Inputs, Tools &

Techniques, and Outputs
Strategies for Negative Risks or Threats
•Avoid. Risk avoidance involves changing the project management plan to
eliminate the threat posed by an adverse risk, to isolate the project objectives
from the risk's impact
•Mitigate. Risk mitigation implies a reduction in the probability and/or
T&T
impact of an adverse risk event to an acceptable threshold.
•Transfer. Risk transference requires shifting the negative impact of a threat,
along with ownership of the response, to a third party.
52
Strategies for Positive Risks or Opportunities
*Exploit. This strategy seeks to eliminate the uncertainty with
an opportunity to ensure it happens.
*Share. Sharing a positive risk involves allocating ownership to a third
party who is best able to capture the opportunity for the benefit
of the project.
T&T
*Enhance. This strategy modifies the "size" of an opportunity by
increasing probability and/or positive impacts, and by identifying
and maximizing key drivers of these positive-impact risks.
53
Strategy for Both Threats and Opportunities
*Acceptance: This strategy indicates that the project team has decided
not to change the Project Management Plan to deal with a risk, or is
unable to identify any other suitable response strategy.
T&T
This strategy can be either passive or active.
*Passive acceptance:
Requires no action except to document the strategy.
*Active acceptance:
Is to establish contingency reserve, including amount of money, time,
resources to handle the risk if it occurs.
54
Contingent Response Strategies
Some responses are designed for use only if certain events occur.
For some special risks events, it is appropriate for the project team to make a
response plan that will only be executed under certain predefined conditions.
Events that trigger the contingency response, such as missing intermediate
T&T
milestones should be defined and tracked.
*Risk responses identified using this technique are often called contingency
plans or fallback plans .
Project Management Plan Updates
• Schedule, Quality, Procurement, and Human resource
management plan.
• Scope, Schedule, and Cost baseline.
OUTPUTS
• Risk register
• Assumptions log updates.
• Technical documentation updates.
• Change requests.
56
Questions:
*Risk tolerances are determined in order to help:
A- The project manager estimate the project.
B- The team rank the project risks.
C- The team schedule the project.
D- Management know how other managers will act on the project.
*Being at the end of identifying Project Risks process, as a PM. you should direct your
team to use the technique of:
a-Sensitivity analysis
b-Probability & impact assessment
c-Expected monetary value
d-Strategies for negative risks
4
*Decision trees are best used for :
1. Determining the interaction of the amount at stake and the expected value
2. Association of the probabilities with the risk events
3. Calculating the average outcome when the future includes scenarios that may
or may not happen
4. A flow chart which determines the standard deviation of the risk event
*The total amount of risk that is calculated for a project is found by

1. Multiplying the sum of each the risk times the amount at stake
2. Calculating the cumulative sum of the probability for each risk and multiplying
this value times the consequence of occurrence of the risk events
3. Cannot be calculated since all risks are not known
4. The amount of project reserves available
58
Project Integration
9 Knowledge Areas
Scope Time Cost Quality

Mgt. Mgt. Mgt. Mgt.
Stakeholders’ Project
needs and Project Integration Management Success
expectations
HR Comm. Risk Procure.

Mgt. Mgt. Mgt. Mgt.
59
• Integration is primarily the role of the project manager because the
project manager is the only one responsible for seeing the overall
“ big picture ”
• Integration means putting the pieces of the project together into a
cohesive whole while managing tradeoffs among the different project
objectives. .
60
Project Integration Management
* Project Integration Management includes the processes, actions and
activities needed to identify, define, combine, unify and coordinate the
various processes and project management activities within the Project
Management Process Groups
• The integration effort also involves making trade-offs among competing

objectives and alternatives.
Good project integration management is the key to the

overall project success
Initiating Planning Executing Monitoring &Controlling Closing
Process Group Process Group Process Group Process Group Process Group
62
4.2 Develop Project Management Plan
* The process of defining, preparing, and coordinating all subsidiary plans

and integrating them into a comprehensive Project Management Plan.
• The project management plan defines HOW the project is executed,

monitored and controlled, and closed.
• The project management plan documents the collection of outputs of the

planning processes of the Planning Process Group.
The project plan provides the specifics of:
• What (Objective, scope, and statement of work)
• How (Approach, Work breakdown structure)
• Who (Project organization and resource schedule)
• When (Schedules and milestones)
• Where (Facilities required)
• What-if (Contingency plans of risk events)
64
4.2 Develop Project Management Plan
Outputs
.1 Project charter 1. Expert judgment
.2 Outputs from planning 2. Facilitation techniques
processes
Project
management
plan
factors
assets
Figure 4-4. Develop Project Management Plan : Inputs,
Tools and Techniques, and Outputs
Outputs from Planning Processes
Outputs from many of the planning processes described in Chapters 5
through 13 in the PMBOK are integrated to create the project management
plan.
INPUTS
Any baselines and subsidiary management plans that are an output from
other planning processes are inputs to this process.
In addition, updates to these documents can necessitate updates to the

project management plan.
66
Enterprise Environmental Factors: (What the organization is like)
 Governmental or industry standards;
 Project management body of knowledge for vertical market (e.g., construction,
environmental, safety, risk, ..
INPUTS
 Project management information system
 Organizational structure, culture, management practices, and sustainability;
 Infrastructure (e.g., existing facilities and capital equipment); and
 Personnel administration (e.g., hiring and termination guidelines, ..
67
Organizational Process Assets: (How the organization does projects)
 Standardized guidelines, work instructions, proposal evaluation criteria, and
performance measurement criteria
 Project management plan templates
 Guidelines and criteria for tailoring the organization’s set of standard
INPUTS
processes to satisfy the specific needs of the project
 Project closure guidelines or requirements like the product validation and
acceptance criteria,
 Change control procedures
 Project files from past projects
 Historical information and lessons learned knowledge base
 Configuration management knowledge base.
68
Expert Judgment Role:
• Tailor the process to meet the project needs,
•Develop technical and management details to be included in the project
management plan,
• Determine resources and skill levels needed to perform project work,
T&T
• Define the level of configuration management to apply on the project,
• Determine which project documents will be subject to the Formal Change
Control Process.
69
Facilitation Techniques
Have broad application within project management processes and guide
the development of the project charter.
Ex: Brainstorming, conflict resolution, problem solving, and meeting
T&T
management are key techniques used by facilitators to help teams and
individuals accomplish project activities.
70
Project Management Plan
*Project Management Plan. The document that describes HOW the

project will be executed, monitored, and controlled.
Project Management Plan content:
Project baselines include:
OUTPUTS
• Schedule baseline,
• Cost performance baseline, and
• Scope baseline.
*Often the scope, schedule, and cost baseline will be combined into a
performance measurement baseline that is used as an overall project baseline
against which integrated performance can be measured.
Subsidiary plans included in Project Management Plan
•Scope Management Plan
• Requirements Management Plan
• Schedule Management Plan
OUTPUTS
• Cost Management Plan
• Quality Management Plan
• Process Improvement Plan
• Human Resource Plan
• Communications Management Plan
• Risk Management Plan
• Stakeholders Management Plan
• Procurement Management Plan
72
Project Management Plan clarifies:
• The project management processes selected and their level of
implementation
• The descriptions of the tools and techniques to be used
• How work will be executed to accomplish the project objectives
OUTPUTS
• How changes will be monitored and controlled
• How configuration management will be performed
• How integrity of the performance measurement baselines will be
maintained
• The need and techniques for communication among stakeholders
• The selected project life cycle
• Key Performance Indicators for project reviews
73
OUTPUTS
Project Management Institute, Inc., 2013, Table 4-1, Page 78.

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Project Risk and IntegrationPlanning

PMBOK Guide 5th edition

11.1 Plan Risk Management

4.2 Develop Project Mangement Plan

Quality Requirements Project Availability

A proactive attempt to recognize and manage internal events and external

-Reduces surprises and negative consequences.

Function and Risk Preference

Risk-Averse Risk-Neutral Risk-Seeking

utility utility utility

Potential payoff Potential payoff Potential payoff

11.1 *Plan Risk Management—The process of defining HOW to conduct

11.2 *Identify Risks—The process of determining which risks may affect

11.3 *Perform Qualitative Risk Analysis—The process of prioritizing

.1 Project management plan .1 Analytical techniques

.2 Project charter .2 Expert judgment

• Revised stakeholders’ tolerances.

• Reporting formats and templates: what goes into the report

• Tracking documents: Auditing and reporting of risk process for tracking

.1 Risk management plan .1 Documentation reviews

 Periodic update and review

*Perform Qualitative Risk Analysis -the process of prioritizing risks

.1 Risk management plan .1 Risk probability and impact

.2 Scope baseline assessment

Figure 11-8. Perform Qualitative Risk Analysis: Inputs,

Risk Probability Impact Severity

Low Risk Medium Risk High Risk

*Risk Urgency Assessment. Review and determination of the timing of actions

• Perform Quantitative Risk Analysis is performed on risks that have

•Assess the probability of achieving specific project objectives

•Identify risks requiring the most attention by quantifying their relative

•Determine the best project management decision when some conditions

.1 Risk management plan .1 Data gathering and

.2 Cost management plan representation techniques

$30m $33m $36m $39m

*The typical display of results is in the form of a tornado diagram.

Example of Tornado Diagram ranking project Risks by Severity

*A common use of this type of analysis is a decision tree analysis”

• A decision tree is a diagramming analysis technique used to help select

• Expected monetary value (EMV) is the product of a risk event probability

• You can draw a decision tree to help find the EMV.

Inputs Tools & Techniques

.1 Risk management plan .1 Strategies for negative Outputs

Figure 11-18. Plan Risk Responses: Inputs, Tools &

*The total amount of risk that is calculated for a project is found by

Scope Time Cost Quality

HR Comm. Risk Procure.

• The integration effort also involves making trade-offs among competing

Good project integration management is the key to the

* The process of defining, preparing, and coordinating all subsidiary plans

• The project management plan defines HOW the project is executed,

• The project management plan documents the collection of outputs of the

• How (Approach, Work breakdown structure)

• Who (Project organization and resource schedule)

• When (Schedules and milestones)

• Where (Facilities required)

• What-if (Contingency plans of risk events)

Inputs Tools & Techniques

In addition, updates to these documents can necessitate updates to the

*Project Management Plan. The document that describes HOW the

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