IT Project managemEnt opIc Project risk Management INSTRUCTOR: SHU LIU HIIT SCHOOL OF SOFTWARE Fa12005 All rights reserved
Topic: Project Risk Management IT Project Management INSTRUCTOR: SHU LIU HIT SCHOOL OF SOFTWARE Fall 2005 All rights reserved
IT rojsek management outline ■ What is risk? What is Project Risk Management? a Project risk Management Processes Risk management plannin g Risk identification Qualitative risk analysis Quantitative risk analysis Risk response planning Risk monitoring and control Project Integration Management
Project Integration Management 2 Outline ◼ What is Risk? ◼ What is Project Risk Management? ◼ Project Risk Management Processes: ◼ Risk management planning ◼ Risk identification ◼ Qualitative risk analysis ◼ Quantitative risk analysis ◼ Risk response planning ◼ Risk monitoring and control IT Project Management
IT Project management What is risk? a dictionary definition of risk is he possibility of loss or injury a The question is how to minimize the possibility of loss or injury a Risk management Project Integration Management
Project Integration Management 3 What is Risk? ◼ A dictionary definition of risk is ◼ “the possibility of loss or injury” ◼ The question is how to minimize “the possibility of loss or injury” ◼ Risk Management IT Project Management
IT Project management Risk Management Risk management is an investment a There are costs associated with identifying risks analyzing those risks, and establishing pla to mitigate those risks a Those costs must be included in cost. schedule and resource planning a Organizations take risks to benefit from potential opportunities Project Integration Management
Project Integration Management 4 Risk Management ◼ Risk management is an investment ◼ There are costs associated with identifying risks, analyzing those risks, and establishing plans to mitigate those risks. ◼ Those costs must be included in cost, schedule, and resource planning. ◼ Organizations take risks to benefit from potential opportunities IT Project Management
IT Project management Risk Utility a Risk utility or risk tolerance is the amount of satisfaction or pleasure received from a potential payoff Risk-averse people do not like to take risks Risk-seekers have a higher tolerance for risk and their satisfaction increases when more payoff is at stake The risk-neutral approach achieves a balance between risk and payoff Project Integration Management
Project Integration Management 5 Risk Utility ◼ Risk utility or risk tolerance is the amount of satisfaction or pleasure received from a potential payoff ◼ Risk-averse people do not like to take risks. ◼ Risk-seekers have a higher tolerance for risk and their satisfaction increases when more payoff is at stake ◼ The risk-neutral approach achieves a balance between risk and payoff IT Project Management