1. IT-301 Project Management I:
Unit 8: Risk Management

2. Agenda
Unit 8 Risk Management
Assignment Discussion

3. Definition of Project Risk Management
“Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and monitoring and control on a project.
“The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of negative events in the project.”
Project Management Institute (PMI) PMBOK, Project Management Body of Knowledge
Key component of identification of risk is to learn to listen and recognize the risk voiced by team members that may be given during status meetings.
The actions taken to further investigate an uncertainty, may be the one item that prevents schedule slip, cost over run or averts another crisis! Don’t ignore this source of continuous risk identification. Don’t hound your teams, but ask if they feel the uncertainty should be investigated further.

4. One of the Biggest impediments to Risk Management: Some Stakeholders Think They Don’t Have Risks!
Risk Aversion – hear no evil, see no evil, speak no evil but then you loose the proactive time period to plan for risk events

5. Risk Management in Application
“For risk to happen once is understandable, since uncertain events can occur even on the best-managed projects.
If the same risk occurs twice, that is unfortunate, because the chances should be less than the first time.
But for a risk to happen a third time is unacceptable, as it exposes a lack of learning from the past.”
Dr. David Hillson, Risk Doctor Limited
Significance is that no action taken – didn't learn, didn’t change, same result

6. Unit 8: Risk Management Planning Risk Management Identify Risks
Deciding how to approach/plan activities related to the project
Identify Risks
Documenting the risks that can occur for the project
(IF-EVENT-IMPACT-RESPONSE)
Establish a risk register, responses, contingency, fallback
Tools: Risk Break Breakdown, List of Common Conditions, brainstorming, SWOT Analysis
Perform Qualitative Risk Analysis
Understanding effect of the risks on the project
Top Ten Impact Tracking, Probability/Impact
Perform Quantitative Risk Analysis
Understanding the scope of the risks (prioritize for further analysis)
Tools: Decision Trees, Monte Carol Simulation, Expected Monetary Value, etc.
Proactive Planning for known risks is key, the format and clarity of the risk statement is important. If the risk is not clearly documented, time can be wasted figuring out just what is this risk…

7. Unit 8: Risk Management Plan Risk Responses Monitor and Control Risks
Threat Responses: Avoid, Accept, Transfer, Mitigate
Opportunity Responses: Exploit, Share, Enhance, Accept
Responses to risk may need to change as the situations surrounding the risk change
Perform a Project S.W.O.T Analysis to understand your projects special needs
Establish triggers that prompt for evaluation of risk status and surrounding project events or activities
Monitor and Control Risks
Executing the planned responses
Review project performance information
Evaluate Change requests for risk/impact
Reviewing updates to overall project for risk
Reviewing other risks for impact to other risks
Strength
Weakness
Opportunity
Threat
Mitigate very overloaded term – it is only one of the risk responses
SWOT Analysis done by a team can uncover risks that may have lain dormant
Establish a risk breakdown structure by looking at each area of the WBS and brainstorming what risks can come from this area
Don’t forget environmental or external items as well as internal team, process or product ones.

8. Common Mistakes in Risk Management
Risk Management Is Done at the Wrong Time
Risks are not properly named
Categories of risk are missed
Risk Qualification Takes too long
Team does not realize risk management can help prove the value of project management (Effective Planning decrease project time and cost)
Team does not realize there should be an action plan in place before the risk occurs
Team wastes time by doing the wrong things while the project work is being done
Project managers do not push back

9. Common Mistakes in Risk Management
Teams forget to perform these monitor and control activities:
Revisit low ranking risk or non-critical risks to see if update needed to response plan
Adjustments are done to deal with the severity of the actual risk
Look for any unexpected effects or consequences of risk events
Re-evaluate when the project deviates from the baseline
Update risk response plans
Updating the project plan when new risk plans are developed
Create a risk register or database for use through out the organization
Periodic evaluation of risk is key to prevent risk from converting to problems, issues, disasters…
As the project phases changes so does the risk environment

10. Additional References
Risk Management, Tricks of the Trade® for Project Managers book
PM Crash Course™ book
Common Risk Management Errors
Online Workshop
Risk Management, Tricks of the Trade® for Project Managers
Online Course
Free Tricks and Tools at: