PMP Preparation
PROJECT RISK MANAGEMENT
Waleed El-Naggar, MBA, PMP
Project Risk Management
The processes of conducting risk management
planning, identification, analysis, response
planning and monitoring and control on a project
Objectives are to increase the probability and
impact of positive events and decrease the
probability and impact of negative events In the
project
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Mapping the Processes
Process
Group
PM
Knowledge Area
11. Risk
Initia
tion
Planning
11.1 Plan Risk
Management
11.2 Identify Risks
11.3 Perform Qualitative
Risk Analysis
11.4 Perform
Quantitative Risk
Analysis
11.5 Plan Risk Response
Executing
Controlling
Closing
11.6 Monitor and
Control Risk
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11.1 Plan Risk Management
The process of defining how to conduct risk
management activities for a project
Important to provide sufficient resources and
time for risk management activities, and to
establish an agreed upon basis for evaluating
risk.
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Plan Risk Management
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Plan Risk Management: Inputs
Project Scope Statement
Cost Management Plan
Schedule Management Plan
Communication Management Plan
Enterprise Environmental Factors
Organizational Process Assets
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Plan Risk Management: Tools &
Techniques
Planning Meetings and Analysis
Project teams meet with stakeholders
High level plans for risk management are
define in these meetings
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Plan Risk Management: Outputs
Risk Management Plan
Methodology
Roles
and Responsibilities
Budgeting
Timing
Risk
Categories
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Plan Risk Management: Outputs
Risk Categories
Risk
Breakdown Structure
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Plan Risk Management: Outputs
Definition of Risk Probability and Impact
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Plan Risk Management: Outputs
Probability and Impact matrix
Revised Stakeholders' Tolerance
Reporting Formats
Tracking
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Q: “ An uncommon state of nature, characterized by the
absence of any information related to a desired
outcome” , is a common definition for:
A. An act of God
B. An amount at stake
C. Uncertainty
D. Risk aversion
Answer C
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11.2 Identify Risks
Identify Risks is the process of determining
which risks may affect the project and
documenting their characteristics
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Identify Risks: Inputs
1. Risk Management Plan
2. Activity Cost Estimates
3. Activity Duration Estimation
4. Scope Baseline
5. Stakeholder Register
6. Cost management Plan
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Identify Risks: Inputs (contd.)
7. Schedule Management Plan
8. Quality Management Plan
9. Project Documents
10. Enterprise Environmental Factors
11. Organizational Process Assets
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Identify Risks: Tools & Techniques
Documentation Reviews
Information Gathering Techniques
Brainstorming
Delphi Technique
Interviewing
Root Cause Analysis
Checklist Analysis
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Identify Risks: Tools & Techniques (contd.)
Assumptions Analysis
Diagramming Techniques
Cause-and-effect diagrams
System or process flow charts
Influence diagrams
SWOT Analysis (Strength, Weakness, Opportunities,
Threats)
Expert Judgment
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Identify Risks: Outputs
Risk Register
List
of identified risks
List
of potential responses
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Q: Risk tolerances are determined in order to help:
A. The team rank the project risks
B. The project manager estimate the project
C. The team schedule the project
D. Management know how other managers will act
to the project
Answer A
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11.3 Perform Qualitative Risk Analysis
The process of prioritizing risks for further
analysis or action by assessing and combining
their probability of occurrence and impact
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Perform Qualitative Risk Analysis: Inputs
Risk Register
Risk Management Plan
Project Scope Statement
Organizational Process Assets
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Perform Qualitative Risk Analysis:
Tools & Techniques
Probability and Impact Matrix
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Perform Qualitative Risk Analysis:
Tools & Techniques
Risk Probability and Impact Assessment
Risk Data Quality Assessment
Risk Categorization
Risk Urgency Assessment
Expert Judgment
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Perform Qualitative Risk Analysis: Outputs
Risk Register Updates
Relative
ranking or priority list of project risks
Risks grouped by categories
Causes of risk or project areas requiring
particular attention
List of risks requiring response in the near-term
List of risks for additional analysis and response
Watch lists of low-priority risks
Trends in qualitative risk analysis results
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11.4 Perform Quantitative Risk
Analysis
The process of numerically analyzing the
effect of identified risks on overall project
objectives.
Quantitative analysis is performed on risks
that have been prioritized by the qualitative
risk analysis process as potentially and
substantially impacting the project's
competing demands.
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