Project risk Management Processes The goal of project risk management is to minimize potential risks while maximizing potential opportunities project risk management Processes are Risk management planning: deciding how to approach and plan the risk management activities for the project a Risk identification determining which risks are likely to affect a project and documenting their characteristics 2021/2/21 IP
2021/2/21 11 Project Risk Management Processes ◼ The goal of project risk management is to minimize potential risks while maximizing potential opportunities. ◼ project risk management Processes are: ◼ Risk management planning: deciding how to approach and plan the risk management activities for the project ◼ Risk identification: determining which risks are likely to affect a project and documenting their characteristics
Project risk Management Processes Qualitative risk analysis: characterizing and analyzing risks and prioritizing their effects on project objectives Quantitative risk analysis: measuring the probability and consequences of risks Risk response planning: taking steps to enhance opportunities and reduce threats to meeting project objectives Risk monitoring and control: monitoring known risks, identifying new risks, reducing risks, and evaluating the effectiveness of risk reduction 2021/2/21 AP
2021/2/21 12 Project Risk Management Processes ◼ Qualitative risk analysis: characterizing and analyzing risks and prioritizing their effects on project objectives ◼ Quantitative risk analysis: measuring the probability and consequences of risks ◼ Risk response planning: taking steps to enhance opportunities and reduce threats to meeting project objectives ◼ Risk monitoring and control: monitoring known risks, identifying new risks, reducing risks, and evaluating the effectiveness of risk reduction
10.2 Risk Management Planning IP
10.2 Risk Management Planning
Risk Management Planning a The main output of risk management planning is a risk management plan The project team should review project documents and understand the organization s and the sponsors approach to risk The level of detail will vary with the needs of the project 2021/2/21 IP
2021/2/21 14 Risk Management Planning ◼ The main output of risk management planning is a risk management plan ◼ The project team should review project documents and understand the organization’s and the sponsor’s approach to risk ◼ The level of detail will vary with the needs of the project
Questions Addressed in a Risk Management plan Why is it important to take/not take this risk in relation to the project objectives? What is the specific risk, and what are the risk mitigation deliverables? How is the risk going to be mitigated?(What risk mitigation approach is to be used? Who are the individuals responsible for implementing the risk management plan? When will the milestones associated with the mitigation approach occur? How much is required in terms of resources to mitigate risk? 2021/2/21 AP
2021/2/21 15 Questions Addressed in a Risk Management Plan