Risk Management

Project risk management: 1- Plan risk management. (planning)2- Identify risks. (planning)3- Perform qualitative risk analysis.

(planning)4- Perform quantitative risk analysis.

(planning)5- Plan risk responses (planning)6- Monitor & control risks. (Monitor &

control)

Plan Risk management: process of defining how to conduct risk management activities for a project.

Inputs • Project scope

statement • Cost

management plan

• Schedule management plan

• Communications management plan

• EEF• OPA

Tools & techniques

• Planning meetings & analysis

Outputs • Risk

management plan

Plan risk management outputRisk management plan: describes how risk management will be structured and performed on the project and it includes: Methodology Roles & responsibilities Budgeting Timing Risk category Risk tracking.

Risk impact scale definition

2- Identify risks:Process of determining which risks may

affect the project and documenting the characteristics:

Inputs • Risk

management plan

• Activity cost estimates

• Activity duration estimates

• Scope baseline • Stakeholder

register • Cost

management plan

• Schedule management plan

• Quality management plan

• Project documents

• EEF• OPA

Tools & techniques

• Documentation review

• Information gathering technique

• Checklist analysis

• Assumptions analysis

• Diagramming techniques

• SWOT analysis • Expert judgment

Outputs • Risk register

Identify risks tools & techniques: Information gathering techniques

Brainstorming Delphi techniques Interviewing Root cause analysis

Diagramming techniques Cause and effect diagram System & process flow charts.

SWOT analysis

3- Perform qualitative risk analysisprocess of prioritizing risks for further

analysis or action by assessing and combining their probability of occurrence and impact.

Inputs

• Risk register • Risk

management plan

• Project scope statement

• Scope baseline

• Organizational process assets

Tools & techniques

• Risk probability & impact assessment

• Risk data quality assessment

• Risk categorization

• Risk urgency assessment

• Expert judgment

Outputs

• Risk register updates

Perform qualitative risk analysis tools & techniques Risk probability & impact matrix

4- Perform quantitative risk analysisprocess of numerically analyzing the effect of

identified risks on overall objectives

Inputs

• Risk register • Risk

management plan

• Cost management plan

• Schedule management plan

• organizational process assets

Tools & techniques

• Data gathering & representation techniques

• Qualitative risk analysis & modeling techniques

• Expert judgment

Outputs

• Risk register updates

5- Plan risk responses:process of developing options and actions to

enhance opportunities and to reduce threats to project objectives

Inputs

• Risk register • Risk

management plan

Tools & techniques

• Strategies for negative risks or threats

• Strategies for positive risks of opportunities

• Contingent response strategies

• Expert judgment

Outputs

• Risk register updates

• Risk – related contract decisions

• Project management plan updates

• Project documents updates

Plan risk Reponses tools & techniques: Strategies for negative risks or threats

Avoid: changing the plan to eliminate the threats entirely Transfer: shifting some or all of the negative impact of the threats, with the ownership of the response to another party. Mitigate: reduction in the probability or impact of a risk. Accept: when there is no other option except to accept the risk.

Strategies for positive risks or opportunities: Exploit: eliminating the uncertainty to ensure the opportunity will happen

Share: sharing the risk with a third party to capture the opportunity

Enhance: increasing the probability and / or positive impacts of the opportunity.

Accept: accepting the opportunity impacts without pushing toward it.

6- Monitor & control risks:process of implementing risk response plans,

tracking identified risks, identified new risks, and evaluating risk process effectiveness throughout the project.

Inputs

• Risk register • Project

management plan

• Work performance information

• Performance reports

Tools & techniques

• Risk reassessment

• Risk audits • Variance &

trend analysis

• Technical performance measurement

• Reserve analysis

Outputs

• Risk register updates

• Organizational process assets

• Change requests

• Project management plan updates

• Project documents updates