1. PRM 702 Project Risk Management Lecture #28
PMI’s Project Risk Management Processes
II of II
Ghazala Amin

2. Plan Risk Management
Risk 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 methods
for 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 plan
Schedule management plan
Communications management plan
Enterprise environmental factors
Organizational process assets

4. Plan Risk Management
Tools & techniques
Planning meetings and analysis

5. Plan Risk Management
Outputs
Risk management plan

6. Risk Identification
Involves determining which risks might affect the project and documenting their characteristics.
The process of examining
the program areas and each critical technical process
to identify and
document the associated risk.

7. Risk Identification Inputs Risk management plan
Activity cost estimates
Activity duration estimates
Scope baselines
Stake holder baseline
Cost management plan
Schedule management plan
Quality management plan
Project planning documents
Enterprise environmental factors
Organizational process assets

8. Risk Identification Tools & techniques Documentation reviews
Information gathering techniques
Checklists analysis
Assumption analysis
Diagramming techniques
Expert judgment
SWOT Analysis

9. Risk Identification
Outputs
Risks register

10. Plan Risk Analysis The process of examining each identified risk to
Estimate the probability
And predict the impact on the project.
It includes:
Qualitative Risk Analysis
Quantitative Risk Analysis

11. Qualitative Risk Analysis
The process of assessing the impact and likelihood of identified risks
Risk analysis includes
Evaluating
Probability that a risk would occur
Impact of the risk if it occurs
Time frame in which it might occur
Frequency of risk occurrence
Prioritizing
Prioritize to ensure right amount of management attention

12. Qualitative Risk Analysis
Inputs
Risk register
Risk management plan
Project scope statement
Organizational process assets

13. Qualitative Risk Analysis
Tools & Techniques
Risk probability and impact
Probability and impact matrix
Risk data quality assessment
Risk categorization
Risk urgency assessment
Expert judgment

14. Qualitative Risk Analysis
Outputs
Risk register updates

15. Risk Rating System High Moderate Low
Likely to cause significant disruption to schedule, increase in cost or degradation of performance
Moderate
Has potential to cause some disruption as above, will probably overcome difficulties
Low
Has 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

17. Quantitative Risk Analysis
Inputs
Risk management plan
Risk register
Cost management plan
Schedule management plan
Organizational process assets

18. Quantitative Risk Analysis
Tools and Techniques
Data gathering and representation techniques
Quantitative risk analysis and modeling techniques
Expert judgment

19. Quantitative Risk Analysis
Outputs
Risk register updates

20. Risk Response Planning
Process of developing options and determining actions to enhance opportunities and reduce threats to the project’s objectives
The process that:
identifies, evaluates, selects and implements
one or more strategies,
in order to set risk at acceptable levels given program constraints and objectives.
This includes the specifics on
What should be done
When it should be accomplished
Who is responsible
And associated cost and schedule.

21. Risk Response Planning
Risk response options include:
Acceptance
Avoidance
Mitigation
Transfer

22. Risk Response Planning
Opportunity response options include:
Acceptance
Enhance
Exploit
Share

23. Risk Response Planning
Inputs
Risk management plan
Risk register

24. Risk Response Planning
Tools & Techniques
Strategies for negative risks or threats
Strategies for positive risks or opportunities
Contingent response strategies
Expert judgment

25. Risk Response Planning
Outputs
Risk register updates
Risk related contract decisions
Project management plan updates
Project document updates

26. Reserves Contingency Reserve
A separately planned quantity used to allow for future situations which may be planned for only in part
Also known as “known unknowns”
May involve cost, schedule or both
BAC = Budget at Completion
Management
Reserves
Contingency
Direct
&
Indirect
Costs

27. Reserves Management Reserve
A separately planned quantity used to allow for future situations which are impossible to predict
Also known as “unknown unknowns”
May involve cost, schedule or both
BAC = Budget at Completion
Management
Reserves
Contingency
Direct
&
Indirect
Costs

28. Insurance Strategies Direct Property Damage
Indirect Consequential Loss
Legal Liability
Personnel

29. Risk Monitoring and Control
Inputs
Risk register
Project management plan
Work performance information
Performance reports

30. Risk Monitoring and Control
Tools & Techniques
Risk reassessment
Risk audits
Variance and trend analysis
Reserve analysis
Technical performance measurement
Status meetings

31. Risk Monitoring and Control
Outputs
Risk register updates
Organizational process assets updates
Change requests
Project management plan updates
Project document updates