2 Plan Risk ManagementRisk management planning is the process of deciding how to approach and plan the risk management activities for a project.The process of developing and documenting an organized, comprehensive and interactive strategy and methodsfor identifying and analyzing risks,developing risk response plans,and monitoring and controlling how risks have changed.
3 Plan Risk Management Inputs Project scope statement Cost management planSchedule management planCommunications management planEnterprise environmental factorsOrganizational process assets
4 Plan Risk ManagementTools & techniquesPlanning meetings and analysis
6 Risk IdentificationInvolves determining which risks might affect the project and documenting their characteristics.The process of examiningthe program areas and each critical technical processto identify anddocument the associated risk.
10 Plan Risk Analysis The process of examining each identified risk to Estimate the probabilityAnd predict the impact on the project.It includes:Qualitative Risk AnalysisQuantitative Risk Analysis
11 Qualitative Risk Analysis The process of assessing the impact and likelihood of identified risksRisk analysis includesEvaluatingProbability that a risk would occurImpact of the risk if it occursTime frame in which it might occurFrequency of risk occurrencePrioritizingPrioritize to ensure right amount of management attention
15 Risk Rating System High Moderate Low Likely to cause significant disruption to schedule, increase in cost or degradation of performanceModerateHas potential to cause some disruption as above, will probably overcome difficultiesLowHas little potential to cause disruption to schedule, cost or degradation of performance
16 Quantitative Risk Analysis Aims to analyze numerically the probability of each risk and its consequence on project objectives
20 Risk Response Planning Process of developing options and determining actions to enhance opportunities and reduce threats to the project’s objectivesThe process that:identifies, evaluates, selects and implementsone or more strategies,in order to set risk at acceptable levels given program constraints and objectives.This includes the specifics onWhat should be doneWhen it should be accomplishedWho is responsibleAnd associated cost and schedule.
24 Risk Response Planning Tools & TechniquesStrategies for negative risks or threatsStrategies for positive risks or opportunitiesContingent response strategiesExpert judgment
25 Risk Response Planning OutputsRisk register updatesRisk related contract decisionsProject management plan updatesProject document updates
26 Reserves Contingency Reserve A separately planned quantity used to allow for future situations which may be planned for only in partAlso known as “known unknowns”May involve cost, schedule or bothBAC = Budget at CompletionManagementReservesContingencyDirect&IndirectCosts
27 Reserves Management Reserve A separately planned quantity used to allow for future situations which are impossible to predictAlso known as “unknown unknowns”May involve cost, schedule or bothBAC = Budget at CompletionManagementReservesContingencyDirect&IndirectCosts
28 Insurance Strategies Direct Property Damage Indirect Consequential LossLegal LiabilityPersonnel
29 Risk Monitoring and Control InputsRisk registerProject management planWork performance informationPerformance reports
30 Risk Monitoring and Control Tools & TechniquesRisk reassessmentRisk auditsVariance and trend analysisReserve analysisTechnical performance measurementStatus meetings
31 Risk Monitoring and Control OutputsRisk register updatesOrganizational process assets updatesChange requestsProject management plan updatesProject document updates