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Pmp risk management
The document discusses the key aspects of project risk management according to the Project Management Body of Knowledge (PMBOK). It begins by mapping the risk management processes to the five process groups. It then provides details on each process, including inputs, tools and techniques, and outputs. The major processes covered are: plan risk management, identify risks, perform qualitative risk analysis, perform quantitative risk analysis, plan risk responses, and monitor and control risks. The goal of risk management is to increase the probability and impact of positive events and decrease the probability and impact of negative events on a project.
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Introduction to Project Risk Management processes involving planning, identification, analysis, response, and control.
Detailed mapping of risk management processes including planning, identification, qualitative and quantitative analysis, and risk response. Defining the scope and inputs for planning risk management, including risk categories and methodologies.
The process of identifying project risks and their sources, with inputs and outputs regarding Risk Register.
Prioritizing risks by assessing their probability and impact, updating Risk Register for better management.
Numerical analysis of risks involving data gathering, modeling techniques, and expected monetary value assessment.
Developing strategies for mitigating threats, enhancing opportunities, and updating risk management documentation.
Implementing risk response plans, tracking risks, and evaluating processes. Includes inputs and outputs of risk updates.
End of presentation and contact details for further inquiries regarding Project Risk Management.
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Pmp risk management
- 1. PMP Preparation PROJECT RISKMANAGEMENT Waleed El-Naggar, MBA, PMP
- 2. Project Risk Management The processes of conducting risk management planning, identification, analysis, response planning and monitoring and control on a project Objectives are to increase the probability and impact of positive events and decrease the probability and impact of negative events In the project PMP Preparation - Risk Management 2
- 3. Mapping the Processes Process Group Initia PM Planning Executing Controlling Closing tion Knowledge Area 11. Risk 11.1 Plan Risk 11.6 Monitor and Management Control Risk 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Response PMP Preparation - Risk Management 3
- 4. 11.1 Plan RiskManagement The process of defining how to conduct risk management activities for a project Important to provide sufficient resources and time for risk management activities, and to establish an agreed upon basis for evaluating risk. PMP Preparation - Risk Management 4
- 5. Plan Risk Management PMP Preparation - Risk Management 5
- 6. Plan Risk Management:Inputs Project Scope Statement Cost Management Plan Schedule Management Plan Communication Management Plan Enterprise Environmental Factors Organizational Process Assets PMP Preparation - Risk Management 6
- 7. Plan Risk Management:Tools & Techniques Planning Meetings and Analysis Project teams meet with stakeholders High level plans for risk management are define in these meetings PMP Preparation - Risk Management 7
- 8. Plan Risk Management:Outputs Risk Management Plan Methodology Roles and Responsibilities Budgeting Timing Risk Categories PMP Preparation - Risk Management 8
- 9. Plan Risk Management:Outputs Risk Categories Risk Breakdown Structure PMP Preparation - Risk Management 9
- 10. Plan Risk Management:Outputs Definition of Risk Probability and Impact PMP Preparation - Risk Management 10
- 11. Plan Risk Management:Outputs Probability and Impact matrix Revised Stakeholders' Tolerance Reporting Formats Tracking PMP Preparation - Risk Management 11
- 12. Q: “ Anuncommon state of nature, characterized by the absence of any information related to a desired outcome” , is a common definition for: A. An act of God B. An amount at stake C. Uncertainty D. Risk aversion Answer C PMP Preparation - Risk Management 12
- 13. 11.2 Identify Risks IdentifyRisks is the process of determining which risks may affect the project and documenting their characteristics PMP Preparation - Risk Management 13
- 14. Identify Risks: Inputs 1.Risk Management Plan 2. Activity Cost Estimates 3. Activity Duration Estimation 4. Scope Baseline 5. Stakeholder Register 6. Cost management Plan PMP Preparation - Risk Management 14
- 15. Identify Risks: Inputs(contd.) 7. Schedule Management Plan 8. Quality Management Plan 9. Project Documents 10. Enterprise Environmental Factors 11. Organizational Process Assets PMP Preparation - Risk Management 15
- 16. Identify Risks: Tools& Techniques Documentation Reviews Information Gathering Techniques Brainstorming Delphi Technique Interviewing Root Cause Analysis Checklist Analysis PMP Preparation - Risk Management 16
- 17. Identify Risks: Tools& Techniques (contd.) Assumptions Analysis Diagramming Techniques Cause-and-effect diagrams System or process flow charts Influence diagrams SWOT Analysis (Strength, Weakness, Opportunities, Threats) Expert Judgment PMP Preparation - Risk Management 17
- 18. Identify Risks: Outputs Risk Register List of identified risks List of potential responses PMP Preparation - Risk Management 18
- 19. Q: Risk tolerancesare determined in order to help: A. The team rank the project risks B. The project manager estimate the project C. The team schedule the project D. Management know how other managers will act to the project Answer A PMP Preparation - Risk Management 19
- 20. 11.3 Perform QualitativeRisk Analysis The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact PMP Preparation - Risk Management 20
- 21. Perform Qualitative RiskAnalysis: Inputs Risk Register Risk Management Plan Project Scope Statement Organizational Process Assets PMP Preparation - Risk Management 21
- 22. Perform Qualitative RiskAnalysis: Tools & Techniques Probability and Impact Matrix PMP Preparation - Risk Management 22
- 23. Perform Qualitative RiskAnalysis: Tools & Techniques Risk Probability and Impact Assessment Risk Data Quality Assessment Risk Categorization Risk Urgency Assessment Expert Judgment PMP Preparation - Risk Management 23
- 24. Perform Qualitative RiskAnalysis: Outputs Risk Register Updates Relative ranking or priority list of project risks Risks grouped by categories Causes of risk or project areas requiring particular attention List of risks requiring response in the near-term List of risks for additional analysis and response Watch lists of low-priority risks Trends in qualitative risk analysis results PMP Preparation - Risk Management 24
- 25. 11.4 Perform QuantitativeRisk Analysis The process of numerically analyzing the effect of identified risks on overall project objectives. Quantitative analysis is performed on risks that have been prioritized by the qualitative risk analysis process as potentially and substantially impacting the project's competing demands. PMP Preparation - Risk Management 25
- 26. Perform Quantitative RiskAnalysis: Inputs Risk Register Risk Management Plan Cost Management Plan Schedule Management Plan Organizational Process Assets PMP Preparation - Risk Management 26
- 27. Perform Quantitative RiskAnalysis: Tools & Techniques Data Gathering and Representation Techniques Interviewing PMP Preparation - Risk Management 27
- 28. Perform Quantitative RiskAnalysis: Tools & Techniques Probability Distribution PMP Preparation - Risk Management 28
- 29. Perform Quantitative RiskAnalysis: Tools & Techniques Quantitative Risk Analysis and Modeling Techniques Sensitivity analysis Expected monetary value analysis PMP Preparation - Risk Management 29
- 30. Sample Sensitivity Analysis PMP Preparation - Risk Management 30
- 31. Perform Quantitative RiskAnalysis: Tools & Techniques Expected monetary value analysis : Example Decision tree diagram PMP Preparation - Risk Management 31
- 32. Perform Quantitative RiskAnalysis: Tools & Techniques Modeling And Simulation Cost/Risk simulation results Expert Judgment PMP Preparation - Risk Management 32
- 33. Perform Quantitative RiskAnalysis: Outputs Risk Register Updates Probabilistic analysis of the project Probability of achieving cost and time objectives Prioritized list of quantified risks Trends in quantitative risk analysis results PMP Preparation - Risk Management 33
- 34. Quiz Q: If aproject has a 60% chance of a US $ 100,000 profit and a 40% chance of a US $ 100,000 loss, the expected monetary value for the project is : A. $ 100,000 profit B. $ 60,000 loss C. $ 20,000 profit D. $ 40,000 loss Answer C PMP Preparation - Risk Management 34
- 35. 11.5 Plan RiskResponses The process of developing options and actions to enhance opportunities and to reduce threats to project objectives. PMP Preparation - Risk Management 35
- 36. Plan Risk Responses:Inputs Risk Register Risk Management Plan PMP Preparation - Risk Management 36
- 37. Plan Risk Responses:Tools & Techniques 1. Strategies for negative risks or threats Avoid Transfer Mitigate Accept PMP Preparation - Risk Management 37
- 38. Response Strategies forThreats Avoidance: Risk prevention Changing the plan to eliminate a risk by avoiding the cause/source of risk Protect project from impact of risk Examples: Change the implementation strategy Do it ourselves (do not subcontract) Reduce scope to avoid high risk deliverables Adopt a familiar technology or product PMP Preparation - Risk Management 38
- 39. Response Strategies forThreats Mitigation Seeks to reduce the impact or probability of the risk event to an acceptable threshold Be proactive: Take early actions to reduce impact/probability and don’t wait until the risk hits your project Examples: Staging - More testing - Prototype Redundancy planning Use more qualified resources PMP Preparation - Risk Management 39
- 40. Response Strategies forThreats Transfer Shift responsibility of risk consequence to another party Does NOT eliminate risk Most effective in dealing with financial exposure Examples: Buy/subcontract: move liabilities Selecting type of Procurement contracts: Fixed Price Insurance: liabilities + bonds + Warranties PMP Preparation - Risk Management 40
- 41. Response Strategies forThreats Acceptance Used when project plan cannot be changed & other risk response strategy cannot be used Active Acceptance Develop a contingency plan to execute if the risk occur Contingency plan = be ready with Plan B Passive Acceptance Deal with the risks as they occur = No Plan B prepared Contingency allowance/ reserve Established amount of reserve (e.g.: time and/or money) to account for the identified known risks. Amount is decided based on probability and impact PMP Preparation - Risk Management 41
- 42. Plan Risk Responses:Tools & Techniques Strategies for Positive Risks or Opportunities Exploit: Ensure opportunity is realized Ex: Assigning organization most talented resources to the project to reduce cost lower than originally planned. Share: Allocating some or all of the ownership to third part best able to capture the opportunity Ex: Joint ventures, special-purpose companies Enhance: Increase the probability and/or the positive impact of the opportunity Ex: Adding more resources to finish early Accept: Welling to take advantage of opportunity if it comes, but not actively pursuing it. PMP Preparation - Risk Management 42
- 43. Plan Risk Responses:Tools & Techniques Contingent Response Strategies Expert Judgment PMP Preparation - Risk Management 43
- 44. Plan Risk Responses:Outputs Risk Register Updates Risk-Related Contract Decisions Project management Plan Updates Project Documents Updates Assumptions log updates Technical documentation updates PMP Preparation - Risk Management 44
- 45. Q: Purchasing insuranceis BEST considered an example of risk: A. Mitigation B. Transference C. Acceptance D. Avoidance Answer B PMP Preparation - Risk Management 45
- 46. Monitor and ControlRisks The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project. PMP Preparation - Risk Management 46
- 47. Monitor and ControlRisks: Inputs Risk Register Project Management Plan Work Performance Information Performance Reports PMP Preparation - Risk Management 47
- 48. Monitor and ControlRisks: Tools & Techniques Risk Assessment Risk audits Variance and Trend Analysis Technical Performance Measurement Reserve Analysis Status Meetings PMP Preparation - Risk Management 48
- 49. Monitor and ControlRisks: Outputs Risk Register Updates Organizational Process Updates Change Requests Recommended corrective actions Recommended preventive actions Project management Plan Updates Project Document Updates PMP Preparation - Risk Management 49
- 50. Q: What shouldbe done with a non- critical Risk? A. Document them for historical use on other projects B. Document them and revisit during project execution C. Document them and set them aside because they are already covered in your contingency plans D. Document them and give them to the customer Answer B PMP Preparation - Risk Management 50
- 51. Thank you [email protected] Facebook: http://www.facebook.com/waleede PMPEgypt Group: http://www.facebook.com/group.php?gid=7273274765 PMP Preparation - Risk Management 51