What are the Processes of Risk Management?
- Plan risk Management
- Identify Risks
- Perform Qualitative risk analysis
- Perform quantitative risk analysis
- Plan risk response
- Implement risk responses
- Monitor Risks
What are the objectives of Project Risk Management?
- Increase the probability and/or impact of positive risks/opportunities
- Decrease the probability and/or impact of negative risks/threats
- Optimize the chance of sucess
What considerations must be made when tailoring project risk management?
- Project Size (direct relationship to risk)
- Project Complexity (tech, laws, innovation)
- Project Importance
- Developmental approach (predictive, agile, life cycle(s)
Role of the PM for Risk Mgmt
- Accountable for the day to day mgmt of project
- Ensuring the project risk processes are properly and effectively implemented
- Gather unbiased data from various sources
- Communicate risk status and responses to stakeholders
- Ensure risk re-evaluation is planed during periodic intervals to confirm the project is adequately covered.
What do you need to know to handle/manage risk?
- Need to know what level of risk exposure is acceptable in pursuit of the project objectives
What are the 2 levels of risk?
- High level (overview)
- Low Level (detailed)
What elements can be a part of a risk management plan?
- Risk Strategy
- Methodology
- Roles + Responsibilities
- Funding
- Timing
- Risk Categories
What can be used to prioritize risk?
- Risk Categories
- Probability and impact matrices
What is Risk impact Assessment?
The level of probability for each risk, and their impact on each objective are evaluated.
What is a risk owner
Someone who takes responsibility for planning a risk analysis and ensuring it is implemented
what is the difference between quantitative and qualitative risk analysis, which is done 100% of the time?
Qualitative = measures impact, and probability of occurrence. done all the time Quantitative = quantifies risk exposure in terms of time, cost, resources, and more. depends on the project if it is done (takes a lot of time and resources)\
What does quantitative risk analysis need to be effective?
High quality Data on individual project risks and other sources of uncertainty
What is sensitivity analysis?
Helps to determine which individual project risks or other sources of uncertainty have the most potential impact on project outcomes.
- Correlates variations in project outcomes with variations in elements of the quantitative risk analysis model
What is decision Tree Analysis?
A Diagraming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty.
- Used to support selection of the best of several alternative courses of action - Calculates the expected monetary value of each branch, allowing the optimal path to be selected
what are the 5 main anlysis techniques in quantitative risk analysis?
Data Analysis Sensitivity Analysis Decision Tree Analysis Influence diagram Risk Report
what is data analysis?
- Simulations - Histograms, cumulative probability distribution (S-Curve)
- What has greatest effect on the project’s critical paths
what is a risk report?
- Project Document that is updated with Quantitative results
- Assessment of overall risk exposure
○ Chances of project success
○ Degree of variability remaining in project - Key Output reports
○ S-Curves, Tornado Diagrams, Criticality Analysis
○ Narrative interpretation of results
Prioritized list of individual project risks
- Assessment of overall risk exposure
what are the 5 strategies to deal with threats/opportunities?
Escalate Avoid/Exploit Transfer/Share (using 3rd party to help) Mitigate/Enhance (reduce/increase likelihood of occurrence Accept - aka no action
What is a common problem with project risk mgmt?
Responses may be planned to the fullest extent, but nothing is done afterwards.
What is a project management information system?
PMIS
Information system consisting of the tools and techniques that are used to gather, integrate, and disseminate the outputs of project management processes.
What does the updated risk register have?
- Identified project risks
- Identified risk owners
- Agreed upon risk
- Specific implementation actions
- Detail on control actions for assessing the effectiveness of
• Risk plans
• Symptoms and warning signs of risk
• Residual and secondary risks
• And a watch list of low priority risks
