Project Risk Management

Project Risk Management What is Risk? • Risk is an uncertain event or condition that may affect the project, positively or negatively, directly or indirectly. – Risks are related to an uncertain event or circumstance, termed as “the unknown” – Risks may be good or bad – Positive risks are termed as “Opportunities” and negative risks are termed as “Threats”. 11.1 Plan Risk Management • Project management plan • Stake holder register • Project charter • Enterprise environmental factors • Organizational process assets Tools& Techniques • Analytical techniques • Expert judgment • Meetings • Risk management plan Inputs Output Plan Risk Management • It’s the process of deciding how to approach, plan, and execute the risk management activities for a project. • Concerns the development of a Risk management plan, which should be based on features of a project, such as size, complexity, and cost. • This process creates the roadmap for the remaining risk management processes. Risk Management Planning and Analysis meeting • Attended by the Project manager, project team members & other selected stakeholders. • This is where the project team identifies how they are going identify risks, what tools they are going to use during the risk identification and analysis processes, and who is going to be responsible for the Risk Management activities • Risk cost elements and schedule activities will be developed for inclusion in the project budget and schedule, respectively. • Risk responsibilities will be assigned. • General organizational templates for identifying, categorizing, and reporting risks will be tailored to the specific project during Risk Management Planning Plan Risk Management Points to remember • We do not identify any risk as part of Project risk management plan. • It’s a “how-to” document, where we set up the processes of managing project risks