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Module Five

The document outlines various risk management tools and techniques, including brainstorming, root cause analysis, SWOT analysis, and risk assessment matrices. It emphasizes the importance of these tools in identifying, prioritizing, and tracking risks effectively. Additionally, it discusses methods for analyzing risk data quality, variance, trend analysis, and reserve analysis for unexpected costs.

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MouStafa Mahmoud
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39 views22 pages

Module Five

The document outlines various risk management tools and techniques, including brainstorming, root cause analysis, SWOT analysis, and risk assessment matrices. It emphasizes the importance of these tools in identifying, prioritizing, and tracking risks effectively. Additionally, it discusses methods for analyzing risk data quality, variance, trend analysis, and reserve analysis for unexpected costs.

Uploaded by

MouStafa Mahmoud
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Module 5

Risk Management Tools & Techniques


Risk Management Tools & Techniques

 allow the uncertainty to be addressed by identifying and


generating metrics, parameterizing, prioritizing, and
developing responses, and tracking risk. These activities
may be difficult to track without tools , techniques and
documentation

2
Risk Management Tools &
Techniques
1. Brainstorming
2. Root Cause Analysis
3. SWOT Analysis
4. Probability and Impact Matrix (Risk Assessment Matrix )
5. Risk Data Quality Assessment
6. Variance and Trend Analysis
7. Reserve Analysis

3
1- Brainstorming

 An idea- generating technique used by teams to


generate many ideas in a short period of time.

 Ideas are solicited in non- judgmental manner from all


team members .

4
Types of Brainstorming

 Structured
All team members take turns in sequence.

 Unstructured
No sequencing; freewheeling input of ideas

5
Rules for Brainstorming

 Everyone's ideas are written down and considered.


 No discussion
 No criticism allowed
 Hitchhike
 Do it quickly

6
Follow-Up to Brainstorming

7
2-Root Cause Analysis – 5 Whys

8
Root Cause Analysis - Example

9
3- Risk Assessment Matrix

10
Environmental Analysis

11
PESTEL Analysis

12
13
Force Field Analysis

14
4- SWOT Analysis

15
5- Risk Data Quality Assessment

 It is used to collect all the information about the


identified risks and find details about them so that you
have a better understanding of the accuracy, reliability,
quality of the data.

 By analyzing and examining these parameters, you can


come up with an accurate assessment of the risks that
you face.

16
Risk Data Quality Assessment
Template

17
6- Variance and Trend Analysis

 Variance analysis is a quantitative review of the


differences between what we thought would happen
versus what actually happened.

 While trend analysis is a quantitative review of what


happens over a period of time. In most cases, variance
and trends go hand in hand and are reported at the
same time for the same metrics

18
Variance and Trend Analysis

19
7- Reserve Analysis

 reserve analysis is the process of estimating the amount


of money that should be set aside to cover unexpected
costs. This can be done by looking at past projects and
estimating how much money was spent on unforeseen
expenses.

20
Example

 From the following information calculate the amount to


be transferred in contingency:

 Project Period 12 Months


 Risk of Contingency: 30%
 Cost of Project: $290,00

 Amount of Reserve to be Created = Cost of Project *


Risk of Contingency

21
Example
 This $87,000 to be transferred in the separate bank
account

 The monthly amount to be Transferred = Yearly Amount


Number of Months

22

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