Risk Notes

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Plan Risk Management Planning Risk Management
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WHAT IS RISK
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Risk – An Uncertain event or condition that , if it occurs , has a positive
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or negative effect on a project objectives.
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Risk exists at two levels within every project. Each project contains individual risks that can affect the
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achievement of project objectives. It is also important to consider the riskiness of the overall project,
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which arises from the combination of individual project risks and other sources of uncertainty. Project Risk
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Management processes address both levels of risk in projects, and these are defined as follows:
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Individual project risk is an uncertain event or condition that, if it occurs, has a positive or negative
effect on one or more project objectives.
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Overall project risk is the effect of uncertainty on the project as a whole, arising from all sources of
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uncertainty including individual risks, representing the exposure of stakeholders to the implications of
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variations in project outcome, both positive and negative.
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FUTURE RISK OWNER
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RISK TRIGGER
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-VE RISK AND +VE
THREATS AND OPPERTUNITIES
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RISKS
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CHANCE -
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PROBABILITY
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H A RESULT - IMPACT
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There are 7 process in Risk Management
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1.Plan risk management
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2.Identify risks
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1 to 5 are in Planning
3.Perform Qualitative Risk Analysis - SUBJECTIVE
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4. Perform Quantitative Risk Analysis - OBJECTIVE
Process Group
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5.Plan Risk Responses
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6. Implement Risk Responses Execution Process Group
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7. Monitor Risks Monitoring and Control Process Group
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RISK VS ISSUE
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RISK - FUTURE
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ISSUE -PRESENT
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 An Uncertain event or condition  Something that is occurring now in the
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that , if it occurs , has a positive
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present. You know about it , and it is
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or negative effect on a project being dealt with.
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objectives.
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Risk -R
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Management
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Plan – Guide line
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6.Implementation
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of Risk Responses
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Pure Risk vs. Business Risk – Basic types of risk:
1.Business Risk
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• Contains the possibility of gain or loss. Risk may either be a threat or an opportunity
2. Pure Risk
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• Contains only the possibility of loss. Typically insurable risks.
• Types of Pure Risk:
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• Direct Property Damage
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• Indirect property / Consequential loss.
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• Legal Liability
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• Personnel – related.
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Pure Risk-R M
Business Risk vs.
(Insurable M I
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PROFIT OR LOSS ONLY LOSS
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criteria for efficient insurance
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RISK MANAGEMENT PLAN OVERVIEW
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Frank is the project manager of the NHH Project. He is working with the project team to
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create a plan to document the procedures to manage risks throughout the project. This
document will define how risks will be identified and quantified. It will also define how
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contingency plans will be implemented and how the risk responses are implemented by
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the project team. What document is frank and the NHH Project team creating in this
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scenario?
A.Risk management plan.

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B.Project Management Plan.
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C.Resource Management Plan.
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D.Project Plan
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Frank is the project manager of the NHH Project. He is working with the project team to create a plan to document the procedures to
manage risks throughout the project. This document will define how risks will be identified and quantified. It will also define how
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contingency plans will be implemented by the project team. What document is frank and the NHH Project team creating in this scenario?
A. Risk management plan.
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B. Project Management Plan.
C. Resource Management Plan.
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D. Project Plan
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The risk management plan, part of the comprehensive management plan , defines how risks will be identified , analyzed, monitored and
controlled and even responded to.
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A Risk management plan is a document arranged by a project manger to estimate the effectiveness, predict risks and build response
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plans to mitigate them .it also consists of the risk assessment matrix. Risks are built in with any project and project managers evaluate
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risks repeatedly and build plans to address them. The risk management plan consists of analysis of possible risks with both high and
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low impacts , and the mitigation strategies to facilitate the project and avoid being derailed through which the common problems arise.
Risk management plan should be timely reviewed by the project team in order to avoid having the analysis become state and not
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reflective of actual potential project risks. Most critically , risk management plans include a risk strategy for project execution.
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ROLES AND TEMPLATE FOR RISK STAKEHOLDERS RISK
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RESPONSIBILITES CATEGERIZATION TOLERANCE WHAT?
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STANDARD DEFINITION OF HOW WE GOING TO
METHODOLOGY
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WHAT IS LOW , MEDIUM AND DO RISK REPORTING
HIGH
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PROBABILITY AND IMPACT
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RISK STRATEGY
FUNDING
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STANDARD DEFINITION OF RISK HOW WE ARE
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RATING – FOR EXAMPLE WHAT GOING TO MONITOR
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SCHEDULE/TIMING IS MEDIUM x HIGH THE RISKS?
M O THE ABOVE ITEMS SHOULD BE DISCUSSED AND AGREED WITH THE STAKEHOLDERS THROUGH
MEETINGS
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Risk Management Plan – Guidance –How Risk process are Conducted
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Methodology – How the process are Conducted
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Roles and Responsibilities of Project team
Guidance
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Application of FUND RESERVES of the Project
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How much Time for Risk related activities
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Risk Categories Framework
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Definition Probability & impact
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Stakeholder Risk Tolerance
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REPORTING FORMATS
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For Risk Management
Tracking- AUDITS
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INPUTS
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Project charter The project charter documents the high-level
Project management plan
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project description and boundaries, high level
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Stakeholder Register requirements, and risks.
Enterprise environmental factors
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Organizational process assets
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INPUTS Project Management Plan – Scope Statement??
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Project charter
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In planning Project Risk Management, all approved subsidiary
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management plans should be taken into consideration in order to make
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Stakeholder Register the risk management plan consistent with them. The methodology
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outlined in other project management plan components might influence
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the Plan Risk Management process.
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INPUTS
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Project charter The stakeholder register contains details of the project’s stakeholders and
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provides an overview of their project roles and their attitude toward risk on
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this project. This is useful in determining roles and responsibilities for
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Stakeholder Register managing risk on the project, as well as setting risk thresholds for the
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project
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Project Management Plan – Scope Statement??
 Contains Project deliverables and establishes the

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framework for how significant the risk
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management effort may ultimately become.
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1. Constraints.
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2. Assumptions
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3. Acceptance Criteria.
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Plan Risk Management : Inputs
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Enterprise Environmental Factors : That can influence this process include, but are not limited to risk
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attitudes and tolerances that describe the degree of risk that an organization will stand
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• Examining Stakeholder Tolerance : Depending on the project, the conditions, and the potential for loss or
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reward, stakeholders will have differing tolerances for risk.
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• Consider a project to install new medical equipment in a hospital; there’s little room for acceptance of errors
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because life and death are on the line.
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A person’s willingness to accept risk is known as the utility function (Risk Tolerance).
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Plan Risk Management : Inputs
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Organizational Process Assets : that might be useful in this process include , but are not limited to :
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 Risk Categories
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 Common Definitions of concepts and terms
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 Risk statement formats
 Standard templates
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 Roles and responsibilities , authority levels for decision making
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 Lessons learned and stakeholder registers .
Relying on Risk Management Policies :
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 Organizations often have a predefined approach to risk management.
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 The policies can define the activities to initiate, plan, and respond to risk.
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 Risk management policies are considered part of the organizational process assets.
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DATA ANALYSIS - STAKEHOLDER ANALYSIS
 Their position in the organization
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Roles and their Stakes and Expectation on the Project
Their interest
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Rights
ownerships
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Knowledge
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Contribution
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Risk Attitudes & Risk Tolerances
Risk Seekers
Risk Averse
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Risk Neutral
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(Risk Taker)
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• Don’t worry too
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• Uncomfortable with much about the risk
• Embraces Risk for
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• Looks at Risk as a unless it becomes an
risk. Future Payoff in a
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challenge. Issue.
• Avoids Risks calculated way.
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• Not creative and
• Sometimes this
supportive for new
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excessive optimism
ideas.
cause them losses
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Meeting
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 The Project manager discuss with his/ her team to discuss , HOW to
do risk management.
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To make your meeting effective , you need to prepare for them,
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select a good venue and invite all concerned stakeholders.
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Plan Risk Management - Outputs
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 The only output of Plan Risk Management process is a risk management plan — a plan that
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documents the procedures for managing risk throughout a project
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 The project team should review project documents and understand the organization’s and the
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sponsor’s approaches to risk
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 The level of detail will vary with the needs of the project
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RISK MANAGEMENT
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PLAN CONTAINS Methodolog
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HOW TO
RISK
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DO Risk
APPETITE
Categories
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HOW WHAT ARE
MUCH THE
ALLOTED Reporting
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Timing formats
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Risk
management
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Plan
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HOW WE
ARE
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WHAT IS GOING TO
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Budget Tracking
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Roles & Stakeholder
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Responsibi tolerances
lities Definitions
of
Probabilit
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What is the most true Statement about risk?
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A. Risk register documents all the risk in detail.
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B. When evaluating risks their impact should be considered, however
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probability of occurrence is not important.
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C. The Risk Response plan is included in the Risk Management plan
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D. Risks if they happen always have negative impact and not positive
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What is the most true Statement about risk?
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A. Risk register documents all the risk in detail.
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B. When evaluating risks their impact should be considered, however
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probability of occurrence is not important.
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C. The Risk Response plan is included in the Risk Management plan
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D. Risks if they happen always have negative impact and not positive
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IDENTIFY THE RISKS Planning Risk Management
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STEP -02
IDENTIFY RISKS
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IST CQR CRP S - R M

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P S PROJECT DOCUEMENTS OPA
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1. DURATION ESTIMATES
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2. ACTIVITY COST ESTIMATES
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3. STAKEHOLER REGISTERR
4. ASSUMPTION LOG
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5. ISSUE LOG AGREEMENTS
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6. LESSONS LEARNED REGISTER
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7. RESOURCE REQUIREMENTS
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PROCURMENT
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DOCUMENTS
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Identify Risks—The process of determining which risks may affect the project and documenting their
characteristics as well as source of overall project risks.
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Identify Risks
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Identify Risks is the process of identifying the risks and then documenting how their
presence can affect the project.
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Risk identification is an iterative process and can be completed by the project manager,
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the project team, and a risk management team.
In some instances, stakeholders and even people outside of the project can complete
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additional waves of risk identification.
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RMP ReQ:
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SCOPE
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Res
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BASELINES
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TIME COST
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Requirements management plan. The requirements management plan may indicate project objectives that are
particularly at risk.
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Schedule management plan. The schedule management plan may identify areas that are subject to uncertainty
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or ambiguity.
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Cost management plan. The cost management plan may identify areas that are subject to uncertainty or
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ambiguity.
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Quality management plan. The quality management plan may identify areas that are subject to uncertainty or
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ambiguity, or where key assumptions have been made that might give rise to risk.
Resource management plan. The resource management plan may identify areas that are subject to uncertainty
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or ambiguity, or where key assumptions have been made that might give rise to risk.
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Risk management plan. The risk management plan provides information on risk-related roles and
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responsibilities, indicates how risk management activities are included in the budget and schedule, and describes
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categories of risk, which may be expressed as a risk breakdown structure
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Scope baseline. The scope baseline includes deliverables and criteria for their acceptance, some of which might
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give rise to risk. It also contains the WBS, which can be used as a framework to structure risk identification
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techniques.
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Schedule baseline. The schedule baseline may be reviewed to identify milestones and deliverable due dates that
are subject to uncertainty or ambiguity, or where key assumptions have been made that might give rise to risk.
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Cost baseline. The cost baseline may be reviewed to identify costs or funding requirements that are subject to
uncertainty or ambiguity, or where key assumptions have been made that might give rise to risk.
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Assumptions Log : Assumptions and constraints recorded in the assumption log may give rise to
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individual project risks and may also influence the level of overall project risk.
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Cost estimates and Duration estimates
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Cost estimates provide quantitative assessments of project costs,
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ideally expressed as a range, indicating the degree of risk, where a structured
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review of the documents may indicate that the current estimate is insufficient
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and poses a risk to the project.
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Duration estimates.
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Duration estimates provide quantitative assessments of project durations,
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ideally expressed as a range, indicating the degree of risk, where a structured
review of the documents may indicate that the current estimate is insufficient
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and poses a risk to the project.
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Issue log.
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Issues recorded in the issue log may give rise to individual project risks and may
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also influence the level of overall project risk.
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Lessons learned register.
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Lessons learned about risk identified from earlier phases of the project are
reviewed to determine whether similar risks might recur during the remainder of the
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project.
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identify those that could be at risk.
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Resource requirements. Resource requirements provide quantitative assessments
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of project resource requirements, ideally expressed as a range, indicating the degree
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of risk, where a structured review of the documents may indicate that the current
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estimate is insufficient and poses a risk to the project.
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Stakeholder register. The stakeholder register indicates which individuals or groups
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might participate in identifying risks to the project. It also details those individuals who
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are available to act as risk owners.
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AGREEMENTS: If the project requires external procurement of resources, the
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agreements may have information such as milestone dates, contract type,
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acceptance criteria, and awards and penalties that can present threats or
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opportunities.
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PROCUREMENT DOCUMENTATION: If the project requires external procurement of
resources, the initial procurement documentation should be reviewed as procuring
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goods and services from outside the organization may increase or decrease overall
project risk and may introduce additional individual project risks. As the procurement
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documentation is updated throughout the project, the most up to date documentation
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can be reviewed for risks. For example, seller performance reports, approved change
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requests and information on inspections.
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Enterprise Environmental Factors : include, but are not limited to :
• Published information, academic studies, published checklists ,benchmarking, industry studies, and risk attitudes
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Organizational Process Assets : Project files ,organizational and project process controls, Risk statement templates, and
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lessons learned .
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Identify Risks – Tools and Techniques
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1. DATA Gathering Technique
1. Brainstorming.
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2. Checklist Analysis.
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3. Interviewing.
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2. Root cause Analysis.
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3. Assumption and Constraint Analysis.
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4. SWOT Analysis
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5.. Document Analysis
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6. Expert Judgment.
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7. Interpersonal and Team Skills - WORKSHOPS
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8. Prompt Lists
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9. Meetings
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EXPERT JUDGMENT
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Expertise should be considered from individuals or groups with specialized
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knowledge of similar projects or business areas. Such experts should be
identified by the project manager and invited to consider all aspects of individual
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project risks as well as sources of overall project risk, based on their previous
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experience and areas of expertise. The experts’ bias should be taken into
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account in this process
1. PMO
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2. CONSULTANTS
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3. SME’s
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4. TECHNICAL EXPERTS
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5. INDUSTRY EXPERTS
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6. PROFESSIONAL GROUPS etc
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Brainstorming is to obtain a comprehensive list of individual project risks and sources of overall
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project risk. The project team usually performs brainstorming, often with a multidisciplinary set of
experts who are not part of the team. Ideas are generated under the guidance of a facilitator, either
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in a free-form brainstorm session or one that uses more structured techniques. Categories of risk,
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such as in a risk breakdown structure, can be used as a framework. Particular attention should be
paid to ensuring that risks identified through brainstorming are clearly described, since the
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technique can result in ideas that are not fully formed.
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CHECKLIST ANALYSIS
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Checklists.
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A checklist is a list of items, actions, or points to be considered. It is often used as a
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reminder.
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Risk checklists are developed based on historical information and knowledge that
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has been accumulated from similar projects and from other sources of information.
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They are an effective way to capture lessons learned from similar completed
projects, listing specific individual project risks that have occurred previously and that
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may be relevant to this project.
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The organization may maintain a risk checklist based on its own completed projects
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or may use generic risk checklists from the industry. While a checklist may be quick
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and simple to use, it is impossible to build an exhaustive one, and care should be
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taken to ensure the checklist is not used to avoid the effort of proper risk
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identification. The project team should also explore items that do not appear on the
checklist. Additionally, the checklist should be reviewed from time to time to update
new information as well as remove or archive obsolete information.
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CHECKLIST ANALYSIS
1. Checklist are usually generated by

organizations to reflect the key issues that
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affect their environment.
2. They are useful means of preserving the
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lessons learnt from the occurrence of previous
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events and they can be incorporated into self-
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assessment process or used as a safety net for
reviews.
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3. Checklist should be used in combination with
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other more proactive risk identification
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technique.
O H Weakness.
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1. Too Exhaustive.
2. Too Project specific.
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Which of the following approaches to risk identification should be
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chosen to provide a quick and simple listing of the project risks?
A.Assumptions analysis.
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C.Brainstorming. P
B.Delphi technique.
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D.Checklist analysis
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Which of the following approaches to risk identification should be
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chosen to provide a quick and simple listing of the project risks?
A.Assumptions analysis.
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C.Brainstorming. P
B.Delphi technique.
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D.Checklist analysis
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Interviews. Individual project risks and sources of overall project risk can be identified by interviewing
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experienced project participants, stakeholders, and subject matter experts. Interviews should be conducted in
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an environment of trust and confidentiality to encourage honest and unbiased contributions
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Identify Risks : Tools & Techniques
ROOT CAUSE ANALYSIS
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• There are several diagramming techniques that can be utilized by the
project team to identify risks:
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• Cause and Effect Diagrams or Ishikawa Diagram – Refer – Quality Control
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Chapter for this tool & technique
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Assumptions Analysis
 Wrong Assumptions are big sources of risks.
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 In Assumption Analysis you need to verify the rationality of the
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assumptions made.
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 To Analysis Assumptions , you need them to be written out first.
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 Assumptions are weighted using two factors:
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• Assumption Validity /stability: How reliable is the
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information that led to this assumption?
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• Assumption consequence: What is the effect on the
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project if this assumption is false?
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SWOT Analysis
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SWOT means strengths, weaknesses, opportunities, and threats.
Strengths : the technology to be installed in the project has been installed by other large companies in our
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industries
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• Weaknesses: we have never installed this technology before.
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• Opportunities: the new technology will allow us to reduce our cycle time for time-to-market on new
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products.
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• Threats: the time to complete the training and simulation may overlap with product updates, new versions,
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and external changes to our technology portfolio.
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• For risk identification, it is used to increase the breadth of identified risks by including internally
generated risks. The technique starts with the identification of strengths and weaknesses of the
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organization, focusing on either the project, organization, or the business area in general.
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Documentation Reviews – Tools and Techniques
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Most of the inputs in Risk Identification Process are documents,
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so we have to one process , which will check the quality of the
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documents i.e. called Documentation Reviews
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Schedule
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management Management Management
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plan Plan plan
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Project Stakeholder
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Scope Baseline
Documents Register
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Cost Enterprise
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Organization
Management Environment
process assets
Plan factors
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INTERPERSONAL AND TEAM SKILLS
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Interpersonal and team skills that can be used for this process includes but are not limited to facilitation
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Facilitation improves the effectiveness of many of the techniques used to identify individual project risks and
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sources of overall project risk. A skilled facilitator can help participants remain focused on the risk
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identification task, follow the method associated with the technique accurately, ensure clear risk descriptions,
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identify and overcome sources of bias, and resolve any disagreements that may arise
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PROMPT LISTS
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A prompt list is a predetermined list of risk categories
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that might give rise to individual project risks and that
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could also act as sources of overall project risk. The
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prompt list can be used as a framework to aid the
project team in idea generation when using risk
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identification techniques. The risk categories in the
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lowest level of the risk breakdown structure can be
used as a prompt list for individual project risks. Some
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common strategic frameworks are more suitable for
E
identifying sources of overall project risk, for example
M
PESTLE (political, economic, social, technological,
A
legal, environmental), TECOP (technical,
H
environmental, commercial, operational, political), or
VUCA (volatility, uncertainty, complexity, ambiguity).
M O 58
P
- R M
M I
Risk Register Contents after
P P
S
Identify Risk Process
P
M P
D P
M E POTENTIAL
A
RISK
O H OWNERS
M 59
P
- R M
I
RISK REPORT
P M
The risk report presents information on sources of overall project risk, together with summary information on
identified individual project risks. The risk report is developed progressively throughout the Project Risk
P
Management process. The results of Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan
S
Risk Responses, Implement Risk Responses, and Monitor Risks are also included in the risk report as those
P
processes are completed. On completion of the Identify Risks process, information in the risk report may include
P
but is not limited to:
P M
Sources of overall project risk, indicating which are the most important drivers of overall project risk exposure;
and uu Summary information on identified individual project risks, such as number of identified threats and
D
opportunities, distribution of risks across risk categories, metrics and trends, etc.
E
Additional information may be included in the risk report, depending on the reporting requirements specified in
M
the risk management plan.
H A
M O 60
P
- R M
M I
P
Assumption log.During the Identify Risks process, new assumptions may be made, new constraints
P
may be identified, and existing assumptions or constraints may be revisited and changed.
P S
The assumption log should be updated with this new information.
M P
Issue log. The issue log should be updated to capture any new issues uncovered or changes in
P
currently logged issues.
D
Lessons learned register. The lessons learned register can be updated with information on
E
techniques that were effective in identifying risks to improve performance in later phases or other
M
projects.
H A
M O 61
PERFORM QUALITATIVE RISK
P
Planning Risk Management
M
ANALYSIS
I- R
STEP -03 QUALITATIVE RISK ANALYSIS
P M
P
PROCESS
P S
P
SUBJECTIVE
P M RAPID/QUICK
E D LESS COST /LESS TIME
M
“PRIORITIZED RISKS”-
H A
BASED ON THEIR
O
PROBABILITY AND
M
IMPACT
62
P
M
ANALYSIS
Qualitative Risk Analysis – Priority
I- R
P M
1.Establishing Priorities.
S P
P P
M
2.Risk Categorization.
D P
E
3.Subjective
M
H A
O 4.Quick analysis This are the RISK with
M
Priority
63
P
M
ANALYSIS
Qualitative Risk Analysis – Priority
I- R
P M
P
Ranking or a priority list of risks
P S
Risks grouped by categories
M P
List of risks required near term response
D P List of risks for additional analysis and response
M E Probability & impact
H A
Watch list of low priority risks
O
Trends in Qualitative risk analysis results
M 64
P
M
ANALYSIS
AFTER QUALITATIVE RISK ANALYSIS PROCESS
I- R
P M
S P
P P
P M
E D
A M
O H
M 65
P
M
ANALYSIS
Qualitative Risk Analysis
I- R
P M
What is the probability of risks
P
occurring?
P S
What is the impact to the project
Qualitative
M P objectives, if risk were to occur?
P
Risk Analysis
E D How much time is there to
M
respond to the risk?
H A
O
Where should we spend our
M
efforts?
P
M
ANALYSIS
I- R
Your work as a project manager for Blue well inc. You are working on a project and the
P M
management wants a rapid and cost – effective means for establishing priorities for planning
risk responses in your project. Which risk management process can satisfy management’s
objective for your project .
S P
A. Historical Information
P P
M
B. Quantitative Analysis.
P
C. Rolling Wave planning
D
D. Qualitative risk analysis
M E
H A
M O 67
P
M
ANALYSIS
I-
Your work as a project manager for Blue well inc. You are working on a
R
P M
project and the management wants a rapid and cost – effective means
for establishing priorities for planning risk responses in your project.
S P
Which risk management process can satisfy management’s objective
P
for your project .
A. Historical Information
M P
P
B. Quantitative Analysis.
D
C. Rolling Wave planning
E
D. Qualitative risk analysis
A M
O H
M 68
P
M
ANALYSIS
I- R
• Risk categorization- Using
M
• Risk data quality Assessment – To
P
Template in RMP
check the Quality of Data collected
P
during Risk Identification process
S
with the Stakeholders
P P
• Risk probability and
P M • Probability and impact
D
impact assessment – Using
E
matrix– Using Standard
Standard definition in RMP
M
definition in RMP
H A
O
• Risk urgency assessment –
M
To know how much time left
to ACT?
P
M
ANALYSIS
I- R
P M
S P
P P
P M
E D
A M
O H
M 70
P
M
ANALYSIS
I- R
P M
S P
P P
P M
E D
A M
O H
M 71
P
M
ANALYSIS
I- R
P M
Perform Qualitative Risk Analysis establishes the relative priorities of individual
P
project risks for Plan Risk Responses.
P S
P
It identifies a risk owner for each risk who will take responsibility for planning an
M
appropriate risk response and ensuring that it is implemented. Perform
P
Qualitative Risk Analysis also lays the foundation for Perform Quantitative Risk
D
Analysis if this process is required.
M E
The Perform Qualitative Risk Analysis process is performed regularly throughout
H A
the project life cycle, as defined in the risk management plan
M O 72
P
M
ANALYSIS
I- R
M
RMP
P P
P S
M P
Assumption log. The assumption log is used for identifying, managing, and monitoring key
P
assumptions and constraints that may affect the project. These may inform the assessment of the
priority of individual project risks.
E D
Risk register. The risk register contains details of each identified individual project risk that will be
A M
assessed during the Perform Qualitative Risk Analysis process.
O H
Stakeholder register. This includes details of project stakeholders who may be nominated as risk
M
owners
73
P
- R M
I
EXPERT JUDGMENT
M
Expertise should be considered from individuals or groups with specialized
P
knowledge of similar projects or business areas. Such experts should be
identified by the project manager and invited to consider all aspects of individual
P
project risks as well as sources of overall project risk, based on their previous
S
experience and areas of expertise. The experts’ bias should be taken into
P
account in this process
1. PMO
M P
2. CONSULTANTS
.
D P
E
3. SME’s
M
A
5. INDUSTRY EXPERTS
H
M O 74
P
- R M
I
Interviews. Individual project risks and sources of overall project risk can be identified by interviewing
M
P
S P
P P
P M
E D
A M
O H
M 75
P
M
ANALYSIS
INTERVIEWS
I- R
P M
Project team
S P
P
members, Experts
P
P M
E D
A M for Risk
O H Assessment
M 76
P
M
ANALYSIS
I- R
M
Risk data quality assessment
P P
Risk data quality P S
M P
Assessment – To check the Quality
D P
of Data collected during Risk
M E
Identification process with the
H A Stakeholders
M O
P
M
ANALYSIS
Perform Qualitative Risk Analysis – T&T
I- R
1) RISK DATA QUALITY ASSESSMENT
P M
S P
P
Is the data Credible?
M P Is the data used of high quality?
D P Is the data and information accurate
M E
A
Is the risk itself understood
O H Reliability of the experts assessments of

probability and impact
M 78
P
M
ANALYSIS
Risk Categorization using RM PLANI- R

P M
Technical
S P Internal Cost
P
Quality PM Risk External
GROUPING M P THE RIKS

D P
USING
M E RM PLAN for an
H A
Effective risk response
M O
P
M
ANALYSIS
- R
Risk Categorization using RM PLAN
M I
P
Technical Quality PM Risk External Internal Cost
P
1.
S
1. 1. 1. 1. 1.
P
2. 2. 2. 2. 2. 2.
3 3 3 3 3 3
P
4 4 4 4 4 And So
M
5 And So 5 5 5 On……
P
6 On…… 6 6 6
D
7 7 7 7
E
8 8 8 8
9 And So 9 9
M
10 On…… 10 10
A
And So 11 And So
H
On…… 12 On……
O
13
M
And So
On……
P
M
ANALYSIS
I- R
M
2) Risk Probability and Impact Assessment
P
• This tool and technique assesses the probability that the
P
S
risk events you’ve identified will occur and it determines
P
the effect their impacts have on the project objectives,
P
including time, scope, quality, and cost.
P M
• Analyzing risks in this way allows you to determine
which risks require the most aggressive management.
E D
• Conducted by project team members and
M
knowledgeable individuals outside of the project
H A• Uses risk probability and impact definitions outline in
O
the risk management plan
M 81
P
M
ANALYSIS
RMP I-R
Risk probability and
impact assessment – USING
P M
S
Assigning Each Risk
P
P
1. PROBABILTY
P
M
2. IMPACT
D P
M E
RISK ID PROBABILITY IMPACT
H A
M O 1 LOW LOW
P
M
ANALYSIS
I- R
impact assessment – USING RMP
P M
S P
P
RISK ID PROBABILITY IMPACT
P
1 LOW LOW
P M HIGH MEDIUM
D
3 MEDIUM HIGH
M E
4 MEDIUM MEDIUM
A
5 MEDIUM MEDIUM
O H 6 LOW LOW
M
7 HIGH MEDIUM
9 MEDIUM HIGH
P
M
ANALYSIS
ITS TWO TOOLS IN ONE
I- R
•ProbabilityPa P
M
risk
S
Probability
Assessment P occur.
will actually
P
P M
E D • Good / Bad effect
A M
Impact
O H Assessment of risk occurring

M 84
P
M
ANALYSIS
- R
Assessment of other risk parameters.
effective. A short period indicates high urgency.
M I
Urgency. The period of time within which a response to the risk is to be implemented in order to be
P
Proximity. The period of time before the risk might have an impact on one or more project objectives. A
P
short period indicates high proximity.
S
Dormancy. The period of time that may elapse after a risk has occurred before its impact is discovered.
P
A short period indicates low dormancy.
P
Manageability. The ease with which the risk owner (or owning organization) can manage the occurrence
M
or impact of a risk. Where management is easy, manageability is high.
P
Controllability. The degree to which the risk owner (or owning organization) is able to control the risk’s
D
outcome. Where the outcome can be easily controlled, controllability is high.
E
Detectability. The ease with which the results of the risk occurring, or being about to occur, can be
detected and recognized. Where the risk occurrence can be detected easily, detectability is high.
A M
Connectivity. The extent to which the risk is related to other individual project risks. Where a risk is
H
connected to many other risks, connectivity is high.
Strategic impact. The potential for the risk to have a positive or negative effect on the organization’s
O
strategic goals. Where the risk has a major effect on strategic goals, strategic impact is high.
M
Propinquity. The degree to which a risk is perceived to matter by one or more stakeholders. Where a
risk is perceived as very significant, propinquity is high.
P
M
ANALYSIS
I- R
M
Risk Urgency Assessment
P P
• Using this tool you’ll determine how soon the
P S
potential risks may occur and quickly determine
P
responses for those risks that could occur soon.
P M
• You should consider the risk triggers, the time to
develop and implement a response, and the overall
E D
risk rating when determining how quickly responses
M
are needed.
H A• This assessment can be used with risk probability
O
ratings and risk impact rating to determine an
M
overall risk rating
86
P
M
ANALYSIS
Risk Urgency Assessment – Near term
I- R
Risk assessment
P M
S P
P P
R2
P M
E D
A M R1 R3 R4 R5
H
5
M O 87
P
- R M
M I
P P
P S
Facilitation improves the effectiveness of many of the techniques used to identify individual project risks and
P
sources of overall project risk. A skilled facilitator can help participants remain focused on the risk
M
identification task, follow the method associated with the technique accurately, ensure clear risk descriptions,
P
identify and overcome sources of bias, and resolve any disagreements that may arise
E D
A M
O H
M 88
P
M
ANALYSIS
I- R
P M
S P
P P
P M
E D
A M
O H
M
P
M
ANALYSIS
I- R
P M
S P
P P
P M
E D
A M
O H
M
P
M
ANALYSIS
I- R
3) Probability and Impact Matrix
P M
P
• A probability and impact matrix assigns an overall risk
S
P
rating to each of the project’s identified risks.
P
• The combination of probability and impact results in a
M
P
classification usually expressed as high, medium, or low.
D
• According to A Guide to the PMBOK, high risks are
E
considered a red condition, medium risks are considered
M
A
a yellow condition, and low risks are considered a green
H
condition.
M O • This type of ranking is known as an ordinal scale

because the values are rank-ordered from high to low.
91
P
M
ANALYSIS
RMP I
- R
impact MATRIX – USING
P M
S P
THEIR P
Assigning Each Risk THE RATING BASED ON
M P
D P
1. PROBABILTY
E
2. IMPACT
A M
HRISK
O 1
ID PROBABILITY IMPACT RATING
M HIGH MEDIUM MEDIUM

P
ProbabilityPlanning
and impact Risk Management
M
ANALYSIS
Matrix – USING RMP
I- R
M
RISK ID PROBABILITY IMPACT RATING
1 LOW LOW
P P LOW
2 HIGH
P S
MEDIUM MEDIUM
P
3 MEDIUM HIGH MEDIUM
P M
MEDIUM MEDIUM MEDIUM
E D MEDIUM MEDIUM MEDIUM
A M
6 LOW LOW LOW
O H
7 HIGH MEDIUM MEDIUM
M
9 MEDIUM HIGH MEDIUM
10 HIGH HIGH HIGH

P
M
ANALYSIS
R
Ordinal scale vs. Cardinal Scale
M I-
P
ORDINAL SCALE CARDINAL SCALE
S P
P P
P M
E D
A M
O H
M 94
P
M
ANALYSIS
Watch list (low Priority Risks)
I- R
P M
S P
• Risk with low probability / impacts
P P
P M
• Low Priority Risks
E D
A M• Unwanted or Unexpected surprises
O H towards the end of the project.,
M 95
P
- R M
MEETINGS
M I
P
To undertake qualitative risk analysis, the project team may conduct a specialized meeting (often called a
P
risk workshop) dedicated to the discussion of identified individual project risks. The goals of this meeting
S
include the review of previously identified risks, assessment of probability and impacts (and possibly other
P
risk parameters), categorization, and prioritization. A risk owner, who will be responsible for planning an
appropriate risk response and for reporting progress on managing the risk, will be allocated to each
P
individual project risk as part of the Perform Qualitative Risk Analysis process. The meeting may start by
M
reviewing and confirming the probability and impact scales to be used for the analysis. The meeting may
P
also identify additional risks during the discussion, and these should be recorded for analysis. Use of a
D
skilled facilitator will increase the effectiveness of the meeting.
M E
H A
M O 96
P
M
ANALYSIS
- R
Output of Risk Qualitative Risk Analysis Update Risk Register
Priority
M I
P
List of
P
Risks
S
Categorized
P
Trends risks
M P Risk
P
register
D
Updates
M E Near term
A
Watch response
H
risks
list Risks
O
requiring
additional
M
analysis and
response
97
P
M
ANALYSIS
Output of Risk Qualitative Risk Analysis Update Risk Register
I- R
ISSUE LOG
P M
SP
P P
M
PROJECT
P
ASSUMP
Document RISK
TION LOG
D
s Updates REGISTER
M E
H A
O
RISK
M
REPORT
98
P
M
ANALYSIS
I- R
P M
Which one of the following can lead to developing effective risk
responses?
S P
a. risk data quality assessment
P P
b. risk urgency assessment
P M
c. grouping of risks by common root causes
E D
d. expert judgment after interviewing key project stakeholders
A M
O H
M 99
P
M
ANALYSIS
I- R
P M
Which one of the following can lead to developing effective risk
responses?
S P
a. risk data quality assessment
P P
b. risk urgency assessment
P M
c. grouping of risks by common root causes (Risk Categorization)
E D
d. expert judgment after interviewing key project stakeholders
M
PMBOK Guide Page 293 “ Point No 4” Risk Categorization”
A
O H
M 100
PERFORM QUANTITATIVE RISK
P
M
ANALYSIS
I- R
P M
P
STEP -04
P S
M P
PERFORM QUANTITATIVE RISK ANALYSIS
D P
M E
H A
M O 101
P
M
ANALYSIS
QUANTITATIVE RISK ANALYSIS
I- R
P M
P
TO FIND OUT HOW THE RISKS ARE
S
P
AFFECTING THE OBJECTIVES OF THE
P
PROJECT NAMELY
M
D P TIME
M E
H A COST
M O
P
M
ANALYSIS
I- R
Perform Quantitative Risk Analysis is the process of numerically analyzing the combined effect of
M
identified individual project risks and other sources of uncertainty on overall project objectives. The
P
key benefit of this process is that it quantifies overall project risk exposure, and it can also provide
P
additional quantitative risk information to support risk response planning. This process is not
S
required for every project, but where it is used, it is performed throughout the project.
P P
P M
E D
A M
O H
M 103
P
M
ANALYSIS
I- R
P M
A quantitative risk analysis is a further analysis of the highest priority risks during a which a numerical or
P
quantitative rating is assigned in order to develop a probabilistic analysis of the project.
A quantitative analysis:
P S
a. quantifies the possible outcomes for the project and assesses the probability of achieving specific
P
project objectives.
M
b. provides a quantitative approach to making decisions when there is uncertainty
P
c. Creates realistic and achievable cost, schedule or scope targets
E D
A M
O H
M 104
P
M
ANALYSIS
Sponsor interest
I- R
P
1. Sponsor shows more interest in M
S P
Quantitative & Risk response, since it
P
shows the impact on cost & time
objectives .
M P
2. May require specialized tools.
D P
PROJECT SPONSOR
3. Probabilistic estimates of time and
E
cost
A M
O H
M 105
P
M
ANALYSIS
I- R
M
Perform Quantitative Risk Analysis
• Prioritize risk by
P P
Qualitative
P S
Probability &
M P
Impact
P
D • Assign numerical
M E
H A
Quantitative rating to
M O prioritized risks.
106
P
M
ANALYSIS
PROJECT MANAGEMENT RISK REGISTER
I- R
M
PLAN – RMP+ BASELINE of &
P
Scope, Schedule, Cost RISK REPORT
S P
OPA
P P EEF
P
Other Project Documents
M
D
1. Assumption Log
E
2. Basis of the Estimate
M
3. Cost Estimates
A
4. Duration Estimate
H
5. Milestone List
O
6. Resource Requirements
M
7. Schedule and Cost Forecasts
P
11.4 Perform Quantitative Risk
M
ANALYSIS
Analysis
I- R
P M
S P
P P
P M
E D
A M
O H
M 108
P
M
ANALYSIS
I- R
P M
S P
P P
P M
E D
A M
O H
M 109
P
- R M
I
The baselines describes the starting point from which
M
the effect of individual project risks and other sources
P
RMP of uncertainty are evaluated in terms of SCOPE, TIME
P
and COST
P S
P
SCOPE
P M
E D
A M BASELINES
O H COST TIME
M 110
P
M
ANALYSIS
I- R
Assumption log. Assumptions may form inputs to the quantitative risk analysis if they are assessed as posing a
M
risk to project objectives. The effect of constraints may also be modeled during a quantitative risk analysis.
P P
Basis of estimates.. The basis of estimates used in the planning of the project may be reflected in variability
S
modeled during a quantitative risk analysis process. This may include information on the estimate’s purpose,
P
classification, assumed accuracy, methodology, and source.
P
Cost estimates.. Cost estimates provide the starting point from which cost variability is evaluated.
P M
Cost forecasts.. Forecasts such as the project’s estimate to complete (ETC), estimate at completion (EAC),
D
budget at completion (BAC), and to-complete performance index (TCPI) may be compared to the results of a
E
quantitative cost risk analysis to determine the confidence level associated with achieving these targets.
A M
Duration estimates.. Duration estimates provide the starting point from which schedule variability is evaluated.
H
Milestone list. Described in Section 6.2.3.3. Significant events in the project define the schedule targets against
O
which the results of a quantitative schedule risk analysis are compared, in order to determine the confidence level
M
associated with achieving these targets.
111
P
M
ANALYSIS
I- R
P M
Resource requirements. Resource requirements provide the starting point from
which variability is evaluated.
S P
P
Risk register. The risk register contains details of individual project risks to be
P
used as input for quantitative risk analysis.
P M
Risk report. The risk report describes sources of overall project risk and the
E D
current overall project risk status.
A M
Schedule forecasts. Forecasts may be compared to the results of a quantitative
H
schedule risk analysis to determine the confidence level associated with achieving
M O
these targets.
112
P
Quantitative Risk Analysis – Tools and RM

ANALYSIS
M I-
Techniques
P P
P S
P
Tools and Techniques
Interviews
P M Sensitivity Analysis
E D
FACILITATION Influence Diagrams
A M
Expert Judgement Decision tree
O HPROBABILITY DISTRIBUTIONS Simulation
M 113
P
- R M
I
EXPERT JUDGMENT
P M
S P
P P
M
1. PMO
2. CONSULTANTS
.
D P
E
3. SME’s
M
A
5. INDUSTRY EXPERTS
H
M O 114
P
- R M
I
Interviews. Individual project risks and sources of overall project risk can be assessed by interviewing
M
P
S P
P P
P M
E D
A M
O H
M 115
P
- R M
M I
P
P
P S
A skilled facilitator is useful for gathering input data during a dedicated risk workshop involving project team
P
members and other stakeholders. Facilitated workshops can improve effectiveness by establishing a
M
clear understanding of the purpose of the workshop, building consensus among participants, ensuring continued
P
focus on the task, and using creative approaches to deal with interpersonal conflict or sources of bias
E D
A M
O H
M 116
P
M
ANALYSIS
Perform Quantitative Analysis – Tools & Techniques
I- R
Data Analysis
P M
P
There are four techniques encompassed in this tool
and technique:
P S
P
a. Sensitivity Analysis.
M
b. Simulation.
D
Analysis P
c. Expected Monetary Value Analysis & Decision Tree
M E
d. Influence Diagrams
H A
M O 117
P
M
ANALYSIS
- R
Quantitative Risk Analysis and Modeling Techniques -
Sensitivity Analysis
M I
P
Purpose
 Measures the effects of a project element on a project objective when all other elements are
P
held at their baseline values.
S
 To determine which risks have the highest potential impact on project objectives.
 How important are certain elements to the project?
P
 Which variables require special attention? P
What it’s used for:
P M
 Information to back up recommendations.
E D
 Show a range of outcomes for a risk event.
M
 Identify the risks that can have the greatest effect on the project objectives.
H A
M O 118
MP
- R
Quantitative Risk Analysis and Modeling Techniques -
Sensitivity analysis, also referred to as what-if I

P M
P
or simulation analysis, is a way to predict the
variables.
P S
outcome of a decision given a certain range of
M P
By creating a given set of variables, the analyst
D P
can determine how
impact the outcome.
changes in one variable
M E
H A
MO 119
P
M
ANALYSIS
R
M I-
P P
P S
M P
D P
M E
H A
M O 120
P
M
ANALYSIS
R
Sensitivity Analysis -Tornado Diagrams
M I-
A common way of displaying results of sensitivity
analysis.
P P
P S
 Compare the importance of variable that have a
P
higher degree of uncertainty to more stable variables.
M
P
Typically used for cost, time and quality objectives
E D Sensitive Analysis
A M
O H
M Visual Representation
121
P
M
ANALYSIS
R
Quantitative Risk Analysis – Modeling
& Simulation : What if Analysis
M I-
P
A C
P
B
P
D
S
M P
A
D P C
E
B
A M D
O H
M 122
P
M
ANALYSIS
Quantitative Risk Analysis –Simulation
I- R
P
Converts uncertainties into potential impacts on project objectives that are specified
M
P
at a detailed level of the project.
Examples of Use:
P S
P
 Determine which activities are likely to be on the critical path.
M
P
 Calculates the probable cost of the project.
E D
 Calculates the probable value of the project.
A M
 Cost – benefit analysis.
O H
 Calculate probable time to complete.
M
 Less chance of Misuse than EMV
123
P
M
ANALYSIS
I- R
Result – Stimulation – Probability of Completing the Project on
M
Particular date
P P
P S
M P
D P
M E
H A
M O 124
P
M
ANALYSIS
- R
3) Expected Monetary value – Analysis – Tools & Techniques
M I
Calculates a most-likely monetary value for the risk.
P P
 Used to make decisions.
P S
P
 Looks at probability and impact together.
M
 Requires a risk- neutral assumption.
D P
 Opportunities appear as positive values.
 Threats appear as negative values.
M E
A
Using EMV
O H 1.Involves a formula: Impact X probability.
M 2.Add the EMV of the possible outcome together.

125
P
M
ANALYSIS
R
Expected Monetary Value (EMV)
M I-
P
Project X has a 75% probability of success with an impact of $
P
S
35,000 and a 25% probability of failure with an impact of -
P
$10,000. What is the EMV?
Success
M P Failure
D P
$ 35,000 X 75% = $ 26,250 -$ 10,000X 25% = -$ 2500
M E
$ 26250+-2500 = EMV = $ 23,750
H A
M O 126
P
M
ANALYSIS
R
Decision Trees – Tools & Techniques
M I-
P
• Used to make decisions on risks that are uncertain.
P
S
Calculates the expected future value based on its
current impact and probability.
P
• Use a decision tree diagram. P
P M
• Solving the decision tree provides the EMV for each
D
alternative.
E
M
• Typically used for decisions dealing with time or cost.
H A
M O 127
P
M
ANALYSIS
I- R
P M
S P
P P
P M
E D
A M
O H
M 128
P
M
ANALYSIS
I- R
M
In your project, you are creating a diagram that describes
P
the decision under consideration and implications of
P
choosing one or another of the available alternatives. This
S
will help to:
P P
A. Get a qualitative analysis of the risk
B. Determine which risks may have the most impact on the
project
P M
D
C. Translate the uncertainties at a detailed level into
E
potential impact on objectives expressed at the level of
M
the total project
H A
D. Determine which decision yields the greatest expected
O
value
M 129
P
M
ANALYSIS
Influence Diagrams
I- R
P M
S P
P P
P M
E D
A M
O H
M 130
P
M
ANALYSIS
I- R
M
In your project, you are creating a diagram that describes
P
the decision under consideration and implications of
P
choosing one or another of the available alternatives. This
S
will help to:
P P
A. Get a qualitative analysis of the risk
B. Determine which risks may have the most impact on the
project
P M
D
C. Translate the uncertainties at a detailed level into
E
potential impact on objectives expressed at the level of
M
the total project
H A
D. Determine which decision yields the greatest expected
O
value
M 131
P
M
ANALYSIS
Interviewing
I- R
P M
S P
P
Quantitative Risk Analysis – Tools and Techniques
P
M
Information
P
Used to Quantify gathered is Commonly used
the probability and dependent on Distributions are
D
impact that risks the type of three point
E
have on the project probability
objectives
estimate. O+4M+P
distribution
M
used. 6
H A
M O
P
M
ANALYSIS
I- R
P M
S P
P P
P M
E D
A M
O H
M 133
P
M
ANALYSIS
REPRESENTATION
I- R
OF
P M
S P
UNCERTAINTY
P P
P M
E D
A M
O H
M 134
P
M
ANALYSIS
I- R
M
11.4 Perform Quantitative Risk Analysis Outputs
1. Risk Register (Project Documents Updates)
P P
S
• Probabilistic analysis of the project – Amount of
P
P
Contingency reserve needed, which risk have
M
greatest impact on project CRITCAL PATH etc
•
P
Prioritized list of quantified risks
D
E
• Trend in Quantitative risk analysis results
M
• Recommended Risk Responses – This may included in Risk Report about
A
the overall project RISK EXPOSURE which form the basis of RISK
H
RESPOSNE PLANNING
M O Assessment of overall project risk exposure
135
P
PLAN RISK RESPONSES Planning Risk Management
- R M
M I
STEP -05
P P
P S
P
Risk Response Planning
P M
E D
A M
O H
M 136
P
- R M
FINALIZE THE ACTION PLAN –
M I
P
STRATEGIES OR PLAN A –
P
OPTIONS FOR CONTIGENCY
WHILE DOING THE
S
BOTH –VE AND PLAN
ACTION PLAN FOR
P
+VE RISKS AND LEFT OVER
IDENTIFIED RISKS, RISK CALLED –
AND IF PLAN A
P
RISK TRIGGER NEW RISK MAY RESIDUAL RISKS
FAILS
M
EMERGED, CALLED
READY FOR PLAN
P
SECONDARY RISKS
B – FALL BACK
D
PLAN
E
LOOKING FOR OPTIONS AND ACTION TO DEAL WITH
M
BOTH NEGATIVE AND POISTIVE RISKS
A
STRATEGY FOR
H
OVERALL -VE- HOW TO REDUCE PROBABILITY OR IMPACT
O
PROJECT RISK OR BOTH TOGETHER
M +VE HOW TO INCREASE… P, I OR BOTH TOGETHER

P
Risk Response Planning – OPTIONS AND ACTIONS -R

M
M I
P P
Agreed-upon response strategies
P S
Risk owner and assigned responsibilities
P
Specific actions to implement the chosen response strategy
M
Symptoms and warning signs of risks occurrence
P
Budget and schedule activities required to implement the
chosen responses
D
Contingency reserves of time and cost designed to provide for
E
stakeholder’s risk tolerances
Contingency
M
reserves Contingency plans and triggers that call for their execution
A
1) Fallback plans
H
2) Residual Risks
O
3) Secondary risks
M
4) Contingency reserves
138
P
Plan Risk Responses
- R M
• Plan Risk Responses is all about options and actions
M I
AND STRATEGIES SELECTION
P P
P S
• It focuses on how to decrease the possibility of risks
from adversely affecting the project’s objectives, and on
M P
how to increase the likelihood of positive risks that can
P
aid the project. Doing so it deals with the overall project
D
risks
E
• Plan Risk Responses assigns responsibilities to people
M
A
and groups close to the risk event.
O H
• Risks will increase or decrease based on the
M
effectiveness of Plan Risk Responses .
139
P
- R M
M I
P P
P S
M P
D P
M E
H A
M O 140
P
- R M
M I
P P
P S
M P
D P
M E
H A
M O 141
P
- R M
M I
P
Res
RMP
MP
S P
P P
P M
E D
M
The baseline for information about contingency fund
A
BASELINES
O H COST
M 142
P
- R M
I
Lessons learned register.. Lessons learned about effective risk responses used in earlier phases of the
M
project are reviewed to determine if similar responses might be useful during the remainder
P
of the project.
P
Project schedule. The schedule is used to determine how agreed-upon risk responses will be scheduled
S
alongside other project activities.
P P
Project team assignments.. Project team assignments can show the resources that can be allocated to
M
agreed-upon risk responses.
agreed-upon risk responses.
D P
Resource calendars.. Resource calendars identify when potential resources are available to be allocated to
Risk register.
M E
H A
Risk report.. The risk report presents the current level of overall risk exposure of the project that will inform
O
selection of the risk response strategy.
MStakeholder register.. The stakeholder register identifies potential owners for risk responses.
143
P
- R M
M I
P P
P S
M P
D P
M E
H A
M O 144
P
- R M
I
EXPERT JUDGMENT
P M
S P
P P
M
1. PMO
2. CONSULTANTS
.
D P
E
3. SME’s
M
A
5. INDUSTRY EXPERTS
H
M O 145
P
- R M
I
Interviews. Individual project risks and sources of overall project risk can be assessed by interviewing
M
P
S P
P P
P M
E D
A M
O H
M 146
P
- R M
M I
P
P
P S
A skilled facilitator is useful for gathering input data during a dedicated risk workshop involving project team
P
members and other stakeholders. Facilitated workshops can improve effectiveness by establishing a
M
clear understanding of the purpose of the workshop, building consensus among participants, ensuring continued
P
focus on the task, and using creative approaches to deal with interpersonal conflict or sources of bias
E D
A M
O H
M 147
P
- R M
I
Risk Strategies – Negative risk – Tools & Techniques
P M
S P
P P
Accept Avoid
P M
Mitigate Transfer Escalate
E D
A M
O H
M 148
P
- R M
M I
Escalate. Escalation is appropriate when the project team or the project sponsor agrees that a threat is outside
the scope of the project or that the proposed response would exceed the project manager’s authority.
P
Escalated risks are managed at the program level, portfolio level, or other relevant part of the organization, and
P
not on the project level. The project manager determines who should be notified about the threat and
S
communicates the details to that person or part of the organization. It is important that ownership of escalated
P
threats is accepted by the relevant party in the organization. Threats are usually escalated to the level that
P
matches the objectives that would be affected if the threat occurred. Escalated threats are not monitored
further by the project team after escalation, although they may be recorded in the risk register for information.
P M
E D
A M
O H
M 149
P
Negative Strategy - Avoidance – Example
- R M
M I
Changing the Scope
P P
Adding additional budget
P S
M P
P
Extending schedule
E D
Change requirements
A M
Adding experts
O H
M
Increasing communication
150
P
- R M
I
11.5.2 Plan Risk Responses – Tools & Techniques
M
• 2. Strategies for Negative Risks or Threats
• Transferring the Negative Risk
P P
S
• Transference is the process of transferring the risk (and the
P
ownership of the risk) to a third party. The risk doesn’t disappear,
P
it’s just someone else’s problem. Transference of a risk usually costs
M
a premium for the third party to own and manage that risk.
P
Common examples of risk transference include
• Insurance
•
E D
Performance bonds
M
• Warrantees
H A • Guarantees
O
• Fixed-priced contracts
M 151
P
- R M
M I
P P
While working on a project, you would like to bring a
S
subcontractor to finish the job on time. This is the action
of
P P
M
•Risk Transfer
•Risk Mitigation
•Risk Managing
D P
M E
•Risk Sharing
H A
M O 152
P
- R M
M I
P P
While working on a project, you would like to bring a
S
subcontractor to finish the job on time. This is the action
of
P P
M
•Risk Transfer
•Risk Mitigation
•Risk Managing
D P
M E
•Risk Sharing
H A
M O 153
P
- R M
I
• 3. Strategies for Negative Risks or Threats

P M
• 3. Mitigating the Negative Risk
S P
P
• Mitigating risks is an effort to reduce the probability
P
and/or impact of an identified risk in the project.
M
Mitigation is done—based on the logic—before the risk
P
happens.
D
• The cost and time to reduce or eliminate the risks is more
M E
cost effective than repairing the damage caused by the
risk. The risk event may still happen, but hopefully the
H A cost and impact of the risk will both be very low.
M O 154
P
- R M
I
1. Strategies for Negative Risks or Threats

P M
• Examples of mitigation include:
S P
P
reduce the risk probability or P
• Adding activities to the project to
impact
P M
• Simplifying the processes within
E D
the project
M
• Completing more tests on the
A
project work before
H
implementation
M O • Developing prototypes,
simulations, and limited releases
155
P
Mitigate Strategy
- R M
 A strategy for dealing with negative risks or threats
M I
acceptable level-
P P
Strategy definition: Reducing the probability and / or the impact of a risk to an
P S
 Strategy is used when eliminating risk is not possible or feasible.
P
Examples of Mitigating risk:
M
 Choosing a stable vendor Clarifying priorities.
P
 Taking a conservative approach Increasing communication
D
 Selecting less complex processes Obtaining team-buy-in
M E
 Conducting additional tests. Staying connected with end-users
A
 Building a prototype Increasing team competencies
O H
M 156
P
- R M
M I
P P
Your project have 12 team members . Your Project
Manager is not allowing all the team members to
P S
travel in a single Aircraft. What type of Risk response
P
Strategy he is adopting.
A. Planning
P M
D
B. Mitigation
M E
C. Transfer
H A
D. Avoidance
M O 157
P
- R M
M I
P
Your project have 12 team members . Your Project
P
Manager is not allowing all the team members to
P S
travel in a single Aircraft. What type of Risk response
P
Strategy he is adopting.
A. Planning
P M
D
B. Mitigation
E
C. Transfer
M
H A
D. Avoidance
M O 158
P
- R M
I
Plan Risk Responses – Tools & Techniques
M
4) Accepting the Risks
P
• Risk acceptance is the process of simply accepting
P
S
the risks because no other action is feasible; or the
P
risks are deemed to be of small probability, impact,
P
or both and that a formal response is not warranted.
P M
• Applicable for both Negative and Positive Risks
D
• Passive acceptance requires no action; the project
E
team deals with the risks as they happen. Only
M
A
documentation done.
O H • Active acceptance entails developing a contingency
M
plan should the risk occur.
159
P
Passive vs. Active Acceptance
- R M
M I
P P
Passive
P S
• You will do nothing about it
acceptance
M P
D P
M E•You add some reserve
A
Active
H
acceptance
MO 160
P
- R M
Risk Strategies – Positive risk
M I
P P
P S
M P
Accept
D P
ESCALATE Exploit Enhance Share
M E
H A
M O 161
P
- R M
2. Strategies for Positive Risks and Opportunities
• 4 Strategies – Exploitation, Sharing,
M I
Enhancement, Acceptance
P P
• Exploiting the Positive Risk or Opportunities
P S
P
• When an organization would like to ensure that a
M
positive risk definitely happens, it can exploit the risk.
P
• Positive risk exploitation can be realized by adding
D
resources to finish faster than what was originally
E
planned, increasing quality to recognize sales and
M
customer satisfaction, utilizing a better way of
completing the project work — or any other method
A
that creates the positive outcomes of the identified
H
risk.
M O 162
P
- R M
M I
• Enhancing the Positive Risks
P P
P S
• This risk response seeks to modify the
P
size of the identified opportunity. The
M
goal is to strengthen the cause of the
P
opportunity to ensure that the risk
D
event does happen.
M E
• Enhancing a project risk looks for
solutions, triggers, or other drives to
H A ensure that the risk does come to
O
fruition so the rewards of the risk can
M
be realized by the performing
organization.
163
P
Exploit vs. Enhance
- R M
Exploit Enhance
M I
P
Exploit—ensure to realize the Enhance—try to realized the
P
opportunity. In Exploiting, you will opportunity. Here, you will try to
S
finish the project by increasing finish the project by increasing
P
manpower, overtime, fast-tracking, overtime, fast-tracking ,you try to get
P
crashing (crashing—additional some resources from other projects.
M
resources are assigned to activities to As you can see that in Enhancing Risk
P
finish it earlier than planned. Crashing Response Strategy, you’re only trying
D
increases the cost), motivate team to finish the project early to gain the
E
members by announcing rewards if opportunity; i.e. you are only
M
they finish the project early etc. increasing the probability (chance) to
A
finish the project early, there is no
H
guarantee to realize the opportunity.
M O 164
P
- R M
M I
P P
S
• Sharing the Positive Risk
P P
• The idea of sharing a positive risk really means sharing a
mutually beneficial opportunity between two
M
organizations or projects, or creating a risk-sharing
D P
partnership.
• When a project team can share the positive risk,
M E
ownership of the risk is given to the organization that can
A
best capture the benefits from the identified risk.
O H
M 165
MP
I- R
Contingent Response Strategies
• Some responses are designed for use only if certain
P M
P
events occur. Events that trigger the contingency
S
response such as missing intermediate milestones or
P
gaining higher priority with a supplier should be defined
P
and tracked
M
• A contingency plan is a predefined set of actions the
P
project team will take should certain events occur.
Events that trigger the contingency plan should be
D
tracked.
E
Risk Manager given two
• A fallback plan is a reaction to a risk that has occurred Plan during Risk Response
M
when the primary response proves to be inadequate. Planning
H A
M O 166
P
Understand about Triggers
- R M
M I
P
Triggers are warning signs or symptoms that a risk event is about to occur or
P
S
occurred.
P
 Triggers are output of Risk Identification process.
P
 Responses to Triggers are done in Risk Response Planning.
M
D P
M E
H A
M O 167
P
Triggers – Setting a Milestone is an
- R M
Example
Plan
M I
P
Activity B Planned to be
completed on
P
A Activity Chas to be
30th June
S
B completed on
P
15th July
C
M P
P
A
D
B
E
C
A M Activity B actually
H
completed 15th July
O
2012 Missed the dealine ,
which can delay project
M
completion
168
P
Examples to Risk Triggers
- R M
M I
P
Example 1: If you’re planning to host an outdoor
P
gathering and rain clouds start rolling in from the north
event waiting to happen.

P S
on the morning of the activity, you probably have a risk
M P
Example 2: A key team member hinting about job
P
hunting is a warning sign that they may be thinking of
D
leaving, which in turn can cause schedule delays,
E
increased costs, etc. This is another example of a trigger
M
A
Example 3: For example the risk event might be
H
"flooding" and "heavy rainfall" the trigger
M O 169
P
Residual Risk vs. Secondary Risk
- R M
M I
P P
S
Residual • Risk that remains after risk
risk
P P
responses have been
implemented
P M
E D
A M
Secondary • New Risk that arises as a
H
direct result of
risk
O
implementing risk responses
M 170
P
Residual Risk vs. Second Risk - Example
- R M
Risk response to mitigate contracting
M I
P
H1N1 flu may be to go get a vaccine
P
shot. However the shot could cause
S
serious side-effects; the risk of side-
P
effects would be classed as a secondary
P
risk and is only created as a result of
implementing the primary risk
response.
P M
The residual risk might be that, there is
E D
still a chance of getting H1N1 flu after
having the flu shot as the vaccine might
A M
not be 100% effective.
O H
M 171
P
Residual Risk vs. Secondary Risk
- R M
M I
P
 You are planning the annual employee
P
recognition event. It will be an outdoor event.
S
Because there is a chance of rain, you decide
P
to mitigate the risk of the employees getting
P
wet and not having fun by putting up a tent.
P M
 There is still some residual risk that the
employees will get wet walking from the
E D
parking lot to the tent.
M
 There is also a secondary risk that someone
H A will trip over the tent poles and get injured.
M O 172
P
Secondary Risk - Example
- R M
M I
P
. You are constructing a building and as a security measure you
P
S
installed electrical wire at the top of the boundary wall.
P P
But what will happen if someone accidentally touches the
M
electrical wire, or during rain current falls through the wet wall.
D P
M E
H A
M O 173
P
- R M
M I
Alternatives analysis. A simple comparison of the characteristics
P
and requirements of alternative risk response options can lead to a
P
S
decision on which response is most appropriate.
P P
Cost-benefit analysis. If the impact of an individual project risk can
P M
be quantified in monetary terms, then the cost-effectiveness of
D
alternative risk response strategies can be determined using cost-
E
benefit analysis The ratio of (change in impact level) divided by
M
A
(implementation cost) gives the cost effectiveness of the response
H
strategy, with a higher ratio indicating a more effective response.
O
M 174
P
- R M
M I
P
After implementing the risk response strategies , 5 risks were
P
S
accepted and 6 additional risks still remained after their response was
P
implemented. 3 new risks emerged as a direct result of executing the
P
risk response plan. How many secondary risks are there?
A. 3
P M
B. 6
E D
M
C. 11
D. 9
H A
M O 175
P
- R M
M I
P
After implementing the risk response strategies , 5 risks were
P
S
accepted and 6 additional risks still remained after their response was
P
implemented. 3 new risks emerged as a direct result of executing the
P
risk response plan. How many secondary risks are there?
A. 3
P M
B. 6
E D
M
C. 11
D. 9
H A
M O 176
P
- R M
I
You are the project manager , for your organization . You have
M
P
determined that an activity is too dangerous to complete
P
internally so you hire licensed contractor to complete the
S
work. The contractor , however, may not complete the
P
assigned work on time which could cause delays in subsequent
P
work beginning. This is an example of what type of risk event?
A.Transference
P M
E
B.Internal
D
M
C.Pure risk.
A
D.Secondary risk
O H
M 177
P
You are the project manager , for your organization . You have determined
- R M
I
that an activity is too dangerous to complete internally so you hire licensed
M
contractor to complete the work. The contractor , however, may not complete
P
the assigned work on time which could cause delays in subsequent work
P
beginning. This is an example of what type of risk event?
A. Transference
P S
P
B. Internal
C. Pure risk.
M
D. Secondary risk
D P
A secondary risk is created as a result of a risk response. The first risk of the
E
dangerous work is addressed through transference, but the response
M
creates the possibility of delays within the project.
A
A secondary risk is risk that arised as a straight consequence of implementing
H
a risk response. The secondary risk is an outcome of dealing with the
O
original risk. Secondary risks are not as rigorous or important as primary
risks, but can turn out to be so if not estimated and planned properly
M 178
P
Working with Residual Risks
- R M
M I
P P
• The risk response plan also acknowledges any
P S
residual risks that may remain after planning,
P
avoidance, transfer, or mitigation.
P M
• Residual risks are typically minor and have been
acknowledged and accepted. Management may
E D
elect to add both contingency costs and time to
M
account for the residual risks within the project.
H A
M O 179
P
- R M
M I
P
In your project, you have identified important risks
P
and planned appropriate responses to the risks. Some
P S
risks - e.g. possibility of natural disasters impacting
the project - have been documented and accepted in
risks called?
M P
your risk management plan. What are the remaining
D P
A. Unidentifiable Risks
E
B. Residual Risks
M
A
C. Secondary Risks
O H D. Accepted Risks
M 180
P
- R M
M I
P
In your project, you have identified important risks
P
and planned appropriate responses to the risks. Some
P S
risks - e.g. possibility of natural disasters impacting
the project - have been documented and accepted in
risks called?
M P
your risk management plan. What are the remaining
D P
A. Unidentifiable Risks
E
B. Residual Risks
M
A
C. Secondary Risks
O H D. Accepted Risks
M 181
MP
Outputs
I- R
M
1. Risk Register Updates
2. CHANGE REQUESTS
3. Project Management Plan Updates
P P
P S
Cost plan and cost performance baseline
P
Schedule plan and schedule baseline
M
Quality plan
P
Resource Management plan
D
Procurement plan
E
SCOPE BASELINE
M
A
4. Project Document Updates
H
 Assumption logs- COST FORECASTS- LESSONS LEARNED
O
REGISTER
M
PROJECT SCHEDULE, PROJECT TEAM ASSIGNMENTS, RISK
REPORTS 182
P
IMPLEMENT RISK RESPONSES EXECUTION Risk Management
- R M
M I
P P
P S
M P
D P
M E
H A
M O 183
P
- R M
M I
P
RMP
S P
P P
P M
E D
A M
H
The risk report includes an assessment of the current overall project risk exposure, as
O
well as the agreed-upon risk response strategy. It also describes the major individual
M
project risks with their planned responses.
184
P
- R M
I
Tools & Techniques
EXPERT JUDGMENT
P M
S P
P P
Interpersonal and team skills that can be used for this process include but are not limited to influencing. Some
risk response actions may be owned by people outside the immediate project team or who have other
P M
competing demands.
D
The project manager or person responsible for facilitating the risk process may need to exercise influencing to
E
encourage nominated risk owners to take necessary action where required.
A M
PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)
O H
M 185
P
- R M
OUTPUTS
M I
P
CHANGE REQUESTS
S P
Implementation of risk responses may result in a change request to the cost and schedule baselines or
P
other components of the project management plan. Change requests are processed for review and
disposition through the Perform Integrated Change Control process
M P
D P
M E
H A
M O 186
P
OUTPUTS
- R M
PROJECT DOCUMENTS UPDATES
M I
P
Project documents that may be updated as a result of carrying out this process include but are not limited to:
P
Issue log. Where issues are identified as part of the Implement Risk Responses process, they are recorded in the
S
issue log.
P P
Lessons learned register. The lessons learned register is updated with information on challenges encountered
when implementing risk responses and how they could have been avoided, as well as approaches that worked
M
well for implementing risk responses.
D P
Project team assignments.. Once the risk responses are confirmed, the necessary resources should be
allocated to each action associated with a risk response plan. These resources include suitably qualified and
E
experienced personnel to execute the agreed-upon action (usually within the project team),a specific budget and
M
time allowance for the action, and any required technical resources to complete the action.
H A
Risk register. The risk register may be updated to reflect any changes to the previously agreed-upon risk
O
responses for individual project risks that are subsequently made as a result of the Implement Risk Responses
M
process.
Risk report. The risk report may be updated to reflect any changes to the previously agreed-upon risk response
to overall project risk exposure that are subsequently made as a result of the Implement Risk Responses process
187
Monitoring &
P
MONITOR RISK S Risk Management
M
Control
I- R
STEP -07
Monitor Risks P P M
P S
M P
D P
M E
H A
M O 188
Monitoring &
P
M
DO THE VARIANCE Control
DO AN ANALYSIS
R
TO COMPARE THE
-
ANALYSIS LIKE SV,
I
1.CURRENT RISK
CV AND INDEXES
TO BE TAKEN CARE
M
LIKE SPI, CPI etc. to
2. REMAINIG
P
KNOW WHETHER
IF RISK HAPPENS, DURATION OF THE
P
PROJECT RISKS
IMPLEMENTATION AS PER PROJECT
S
INCREASING OR
THE PLAN OR NOT?
P
DECREASING?
3. REMAINING
P
CONTIGENCY
RE EVALUATE THE
M
RESERVE DO CROSS CHECK
RISK FOR THEIR
P
AVAILABLE THE DELIVERABLES
EARLIER AND
DO AN AUIDIT TO WHICH COMES AS
D
CURRENT
KNOW THE OUTPUT OF
E
PROBABILITIES
AND IMPACT, OVERALL RISK EXECUTION MEETS
M
ESPECIALLY MANAGEMENT MONITOR THE ALL THE
A
THOSE IN EFFICENY OF THE RISKS BY THE REQUIRMENTS OR
H
WATCHLIST AND PROJECT , WHICH RISK OWNER NOT?
O
CLOSEOUT OLD LEADS TO CHANGE
M
RIKS AND REQUESTS
IDENTIFY NEW
RISKS
Monitoring &
P
M
Control
Monitor & Control Risks
I- R
P M
AUDITING
P
Outcomes documented as a result of risk
S
reassessments, audits, and periodic
P
reviews
M P Identify new risks
Unplanned Response
D P Closed risks
E
“WORKAROUND”
M
Actual outcomes of risks and risk
A
responses
OH
M 190
Monitoring &
P
M
Control
I- R
Monitor– New risks can be identifiedM
P P
P S
M P
Identify
D
Risks P Qualitative
Risk Analysis
Respond to
Risks
Monitor &
Control risks
M E
H A Quantitative 1. Corrective Action
O
Risk Analysis 2. Lessons Learned are
M
documented
191
Monitoring &
P
M
Control
Monitor Risks - Inputs
I- R
P M
Process Purpose: To implement risk response plans, track identified risks, monitor residual risks,
identify new risks, evaluate the effectiveness of risk response plans and of the risk management
P
processes.
S
1. Risk register + RISK REPORT+ ISSUE LOG + LESSONS LEARNED REGISTER
P
2. Project management plan
P
3. Work performance DATA
M
4. Performance reports
 Analysis of Past performance

 Status of risks & issues
D P
E
 Work completed
M
 Work to be completed
A
 Summary of changes
H
 Variance analysis results
O
 Forecasted completed.
M 192
Monitoring &
P
M
Control
- R
Control Risks
M I
P P
P S
M P
D P
M E
H A
M O 193
Monitoring &
P
M
Control
I- R
P M
S P
P P
P M
E D
A M
OH
M 194
Monitoring &
P
M
Control
I- R
M
WORK PERFORMANCE DATA
P P
.Work performance data contains data on project status such as risk responses that
S
have been implemented, risks that have occurred, risks that are active and those that have been
P
closed out.
WORK PERFORMANCE REPORTS
M P
P
Work performance reports provide information from performance measurements that
D
can be analyzed to provide project work performance information including variance analysis, earned
E
value data, and forecasting data. This information could be relevant when monitoring performance-
M
related risks.
H A
M O 195
Monitoring &
P
M
Control
1. Perform assessments - Risk
I- R
Reassessment
P M
P
A tool and technique of Monitor & Control Risks process
S
Concerned with:
P
Reassessing existing risks, By reevaluating their P&I
P
M
Closing risks no longer applicable, Identifying new
risks.
D P
E
Here identified risk are reassessed for any changes in the
M
status.
A
 Here we have to keep an eye on watch list for any changes.
H
M O 196
Monitoring &
P
M
Control
Perform assessments - Risk Audits
I- R
P M
A tool and technique of Monitor and control risk process.
P
Concerned with:
S
 Measuring the effectiveness of risk response plan.
P
 Measuring the effectiveness of risk management processes
P
 When risk audits occur, the risk responses are examined to determine
M
whether they were effective in dealing with identified risks and their root
P
cause, and the results of the audits are documented.
D
Normally risk audits will be scheduled at major points throughout the
E
project, such as at certain projects.
A M
OH
M 197
Monitoring &
P
M
Control
Variance and Trend Analysis
I- R
M
A tool and technique of Monitor and Control Risks process
P
Overview:
P
 Examines trends using project performance data.
P S
 Identifies variances by comparing planned versus actual
data.
P
 Purpose to forecast any potential cost and / or schedule
M
P
deviations of the project at completion.
D
Earned Value Analysis – Control Costs process
E
 Planned value (PV)
M
 Earned value (EV)
A
Schedule variance (SV)
H
Actual Cost (AC) Cost Variance (CV)
O
Schedule performance Index (SPI)
Cost performance Index (CPI)
M 198
Monitoring &
P
M
Control
R
Technical Performance Measurement
Overview:
M I-
P
 Compares the actual technical accomplishments to the
planned technical accomplishments.
S
Helps to identify and forecast the degree of success in
P
P
achieving the project’s scope.
P
Purpose to uncover any deviations that may exist, such as
M
differing functionalities , than was planned.
P
Variances may reveal technical risk or performance
accomplishments to planned.
E D
Through this technique we can uncover any deviations
M
that may exist, such as differing functionalities , which
A
may include more or less functionality .
OH
M 199
Monitoring &
P
M
Control
Reserve Analysis
I- R
M
A tool and technique of Monitor and Control Risks Process.
Overview:
P P
S
 Asks: Is the risk reserve remaining sufficient?
P P
 As responses are implemented , the project work gets underway,
and contingency plans are also executed as needed, it becomes
M
necessary to monitor the reserves used for existing risks.
P
Reserve Analysis should occur regularly throughout the project.
D
E
.
A M
OH
M 200
Monitoring &
P
M
Control
MEETINGS
I- R
P M
Meetings that can be used during this process include but are not limited to risk reviews. Risk reviews are
P
scheduled regularly and should examine and document the effectiveness of risk responses in dealing with
S
overall project risk and with identified individual project risks. Risk reviews may also result in identification of
P
new individual project risks, (including secondary risks that arise from agreed-upon risk responses),
reassessment of current risks, the closing of risks that are outdated, issues that have arisen as the result of
P
risks that have occurred, and identification of lessons to be learned for implementation in ongoing phases in
M
the current project or in similar projects in the future. The risk review may be conducted as part of a periodic
P
project status meeting or a dedicated risk review meeting may be held, as specified in the risk management
D
plan.
M E
H A
M O 201
Monitoring &
P
M
Control
R
Monitor & Control Risk - Outputs
M I-
 WPI
P P
S
Updates to the risk register AND RISK REPORTS
CHANGE REQUESTS
P P
M
Updates to the project management plan
P
D
 Updates to the project documents- Assumption log Issue log+
E
Lessons learned register +Risk REGISTER +Risk reports
M
A
Updates to the organizational process assets
O H
M 202

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P

Plan Risk Management Planning Risk Management

M An insurable risk is a risk that meets the ideal

A.Risk management plan.

A. Risk management plan.

M E Probability & Impact Matrix

 Contains Project deliverables and establishes the

Relying on Risk Management Policies :

IST CQR CRP S - R M

1. Checklist are usually generated by

2. They are useful means of preserving the

E D LESS COST /LESS TIME

D P List of risks for additional analysis and response

M E Probability & impact

E D How much time is there to

M P Is the data used of high quality?

D P Is the data and information accurate

O H Reliability of the experts assessments of

Risk Categorization using RM PLANI- R

GROUPING M P THE RIKS

H A• Uses risk probability and impact definitions outline in

O H Assessment of risk occurring

effective. A short period indicates high urgency.

H A• This assessment can be used with risk probability

M O • This type of ranking is known as an ordinal scale

M HIGH MEDIUM MEDIUM

E D MEDIUM MEDIUM MEDIUM

10 HIGH HIGH HIGH

Quantitative Risk Analysis – Tools and RM

O HPROBABILITY DISTRIBUTIONS Simulation

Sensitivity analysis, also referred to as what-if I

O H 1.Involves a formula: Impact X probability.

M 2.Add the EMV of the possible outcome together.

1. Risk Register (Project Documents Updates)

M O Assessment of overall project risk exposure

M +VE HOW TO INCREASE… P, I OR BOTH TOGETHER

Risk Response Planning – OPTIONS AND ACTIONS -R

agreed-upon risk responses.

• 3. Strategies for Negative Risks or Threats

H A cost and impact of the risk will both be very low.

1. Strategies for Negative Risks or Threats

O H • Active acceptance entails developing a contingency

H A ensure that the risk does come to

event waiting to happen.

H A will trip over the tent poles and get injured.

M P Identify new risks

 Analysis of Past performance

WORK PERFORMANCE REPORTS

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