Developing the Risk Management Plan with Expert Judgement
Project risk management involves identifying, assessing, quantifying, modeling, and managing risks that may face a project. Complex projects face the challenge of accurately estimating costs and completion times, or even of failing to deliver outcomes as planned. Even the simplest projects always have some element of risk.
Ways are needed to identify and manage risks to prevent project failure. A risk plan is the way to lessen the chance of adverse outcomes.
The project risk management plan is the fundamental instrument for identifying elements and activities of project risk management, establishing risk breakdown structures, quantifying the extent of risk, and planning a mitigation strategy.
The initial step in planning for project risk management is developing the risk register. A risk register is a detailed inventory of things that could go wrong. The risk register provides a plan to follow the project through completion.
Assigning probabilities and consequences to the many items in the risk register is in itself challenging. Contemporary lessons from cognitive psychology and behavioral economics provide insights into how to do so.
Finally, the project manager must consider the best responses to risk including how to avoid, mitigate, plan contingencies, or transfer the risk. There are many ways to re-organize the project and ownership of risk, as well as adjust how the project objective is achieved.
What you'll learn
- ● The fundamentals of risk management and their importance to projects
- ● How to build a project risk management plan
- ● How to develop a risk register and framework for project risk
- ● How to use expert judgement to assign risk impacts and likelihoods to prioritize and address project risk
- ● How to adjust for our understanding of risk over time
- ● How to think about project risk response strategies
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An overview of related careers and their average salaries in the US. Bars indicate income percentile.
Associate Project Risk Analyst $79k
Project Manager - IT Risk Management $85k
Project Risk Analyst $94k
Risk Management Project Manager $95k
R&D Project Manager - Risk Management $100k
Project Controls and Risk Manager for Dulles Rail Project $105k
Project Risk Manager 2 $125k
Risk Analytics Project Manager $137k
Project Risk Management Lead $142k
Senior Project Risk Manager $163k
Principal Project Risk Analyst $168k
Risk Operations Project Manager $186k
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