1-800-BU-TRAIN ( ) TRAIN TO WIN Project Risk Management Presented by: Michael C. Nollet, MBA, PMP ®

2 Performance Objectives What’s new in PMBOK® 3rd edition? Three tips for more effective risk management Select common problems and brainstorm solutions Document our possible solutions Start to improve project risk management in the real world!

3 About Boston University Founded in th largest private university in U.S. Over $1.4 billion annual budget $2.6 billion in assets Largest foreign student population in the world 17 Schools and Colleges Over 3,000 Faculty Members

4 Boston University Corporate Education Center (BUCEC) Project Management ITIL PRINCE2™ Management & Communication Business Process Management Leadership Six Sigma Team Building Business Analysis Information Technology

5 What is Project Risk?

6 Risks and Objectives Scope/Quality TimeCost Stakeholder Needs and Expectations RISK

7 What’s New in PMBOK 3rd Edition? Look at the Inputs, Tools, Techniques and Outputs!

8 Risk Management Process Start Finish Identify Risk Monitor and Control Risk Analyze Risk Respond to Risk

9 Key Concepts

10 Risk Knowledge Area InitiatingPlanningExecutingControllingClosing Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Monitoring and Control

11 Risk Management Planning InputsTools and Techniques Outputs Enterprise environmental factors Organizational process assets Project scope statement Project management plan Planning meetings and analysis Risk management plan

12 Risk Identification InputsTools and Techniques Outputs Enterprise environmental factors Organizational process assets Project scope statement Risk management plan Project management plan Documentation reviews Information gathering techniques Checklists Assumptions analysis Diagramming techniques Risk register

13 Risk Identification

14 Qualitative Risk Analysis InputsTools and Techniques Outputs Organizational process assets Project scope statement Risk management plan Risk register Risk probability and impact assessment Probability and impact matrix Risk data quality assessment Risk categorization Risk urgency assessment Risk register (updates)

15 Qualitative Analysis

16 Quantitative Risk Analysis InputsTools and Techniques Outputs Organizational process assets Project scope statement Risk management plan Risk register Project management plan Project schedule management plan Project cost management plan Data gathering and representation technique Quantitative risk analysis and modeling techniques Risk register (updates)

17 Risk Response Planning InputsTools and Techniques Outputs Risk management plan Risk register Strategies for negative risks or threats Strategies for positive risks or opportunities Strategies for both threats and opportunities Contingent response strategy Risk register (updates) Project management plan updates Risk-related contractual agreements

18 Risk Monitoring and Control InputsTools and Techniques Outputs Risk management plan Risk register Approved change requests Work performance information Performance reports Risk reassessment Risk audits Variance and trend analysis Technical performance measurement Reserve analysis Status meetings Risk register (updates) Requested changes Recommended corrective actions Recommended preventive actions Organizational process assets (updates) Project management plan (updates)

19 1.Three 2.Risk 3.Tips

20 1. Risk and Impact Travel Together! There is a risk that IMPACT, Because (of) RISK EVENT Or IFTHEN RISK EVENT #1 RISK EVENT #2 IMPACT #1 IMPACT #2

21 2. Make Risk Visible % Impact R1 R2 R3

22 3. Show Total Risk Exposure

Include Contingency in the Plan A 4 WD $X B 6 WD $Y C 8 WD $21,030 F

24 Group Exercise Identify 5 common risks on your projects Review in your small groups Select at least one common risk, and brainstorm all the potential responses you can come up with… and write them down!

25 Web Resources PMI Risk Special Interest Group (SIG) – Society of Risk Analysis – Tech Republic –

26 Reference Books PMBOK, chapter 11 Wideman, “Project and Program Risk Management” Martin and Chadbourne, “The Professional Guide to Risk Assessment” DeMarco and Lister, “Waltzing with Bears”

27 Next Steps Document today’s results our potential solutions Start a dialogue Improve project risk management practices What else could we do?

1-800-BU-TRAIN ( ) TRAIN TO WIN Thank You ! Please send comments to: