PMP EXAMINATION PREP CHAPTER 11 RISK MANAGEMENT. PMP Exam Prep

Transcription

1 PMP EXAMINATION PREP CHAPTER 11 RISK MANAGEMENT PMP Exam Prep

2 RISK MANAGEMENT Page 441 Communications Management Process : Contains 7 of the 49 total processes Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Implement Risk Responses Monitor Risks

3 RISK MANAGEMENT A reminder on how the processes and groups interrelate

4 RISK MANAGEMENT Pages Risk Management: Why it matters: Project managers should not be concerned with dealing with problems as much as they should be focused on preventing them Helps prevent many problems and makes certain problems less likely and/or less impactful Project manager can stay in control of the project rather than being controlled by it

5 Risk Management the process of identifying, Pages evaluating and planning responses to events, both positive and negative. Risks are identified and managed in initiating and kept up to date during the course of the project. A response strategy for risks may create other risks to be managed Threat a risk event that may negatively impact the project Opportunity - a risk event that may positively impact the project Uncertainty Lack of knowledge about an event that reduces confidence in conclusions drawn frim data Risk Factors: Probability of the event Impact of the event Expected timing of the event How often will the event happen RISK MANAGEMENT

6 RISK MANAGEMENT Pages Risk Management Risk Appetites and thresholds indicates the level of risk that an individual or group is willing to accept. Vary depending on the individual or organization and the particular risk area. Appetite (tolerance) high level description of the level of risk acceptable to an individual or organization. Threshold The point at which risk becomes unacceptable Risk averse Someone who does not want to be negatively impacted by negative events Inputs to risk management exercise P

7 PLAN RISK MANAGEMENT Pages Plan Risk Management defines how risk management will structured and performed on the project. Answers the question: how much time should be spent on risk management based upon the needs of the project. Outputs: Risk strategy overall approach to managing risk Methodology how risk management will be performed to meet the needs of the project Roles & responsibilities Who will do the risk management work Funding documents the cost of the risk management process Timing when will risk management be performed on the project Risk categories Stakeholder appetite/threshold Probability and impact defined Reporting Describes reports related to the risk management effort Tracking How will the risk management processed be audited

8 PLAN RISK MANAGEMENT Page 452 Plan Risk Management Risk Categories: External regulatory, environmental, govt., market Internal changes to schedule, budget or scope Technical changes in technology, technical processes etc. Commercial customer stability, issues with contracts and/or vendors Unforeseeable You don t know what you don t know Additional risk sources: Schedule Cost Quality Scope Resources Customer/stakeholder satisfaction

9 Identify Risks Key idea everyone is involved in identifying risk IDENTIFY RISKS Page 454 Tools for identifying risk: Brainstorming Checklist analysis compiled lists of encountered risks Interviewing Root cause analysis Assumption Analysis Constraint Analysis SOWT analysis Documentation reviews Prompt lists Facilitation

10 IDENTIFY RISKS Identify Risks Outputs Risk register central document for risk management. Project document that will also be used for future projects. List of risks Risk Owners Risk responses Risk root causes Updated risk categories Pages Risk Report Distributed to stakeholders for the purpose of keeping them updated on risk management efforts and outcomes.

11 QUESTIONS/COMMENTS? TO BE CONTINUED