Risk Management for Project Professionals (PMBOK7 Updated)

A warm welcome to students of Risk Management for Project Professionals

Effective Learning

FAQs

Present the general framework of the Project Management course and specific interactions.

Exercises, templates and best practices for all the practical work intended in the course.

Student WorkBook (pdf)

Understanding project risk management.

The Science of Better Learning

Provide a brief introduction in project management, defining:

• projects
• project management
• project life cycle
• project phases
• project processes
• project knowledge areas

Make the connections with project risk management and encourage participants to build on their project idea

Provide an overview of the most relevant inputs, tools and techniques and outputs for the following knowledge areas:

• Project Integration Management

• Project charter
• Project management plan

Provide an overview of the most relevant inputs, tools and techniques and outputs for the following knowledge areas:

• Project Scope Management

Guide participants using templates and specific tools and techniques to the realisation of at least the outlines of the

• Project management plan
• Change request
• Project scope statement
• WBS

These documents will give the necessary minimum development of the project idea.

Provide an overview of the most relevant inputs, tools and techniques and outputs for the following knowledge areas:

• Project Time Management

Guide participants using templates and specific tools and techniques to the realisation of at least the outlinesof the

• Project Schedule

These documents will give the necessary minimum development of the project idea.

Provide an overview of the most relevant inputs, tools and techniques and outputs for the following knowledge areas:

• Project Cost Management

Guide participants using templates and specific tools and techniques to the realisation of at least the outlinesof the

• Project Budget

These documents will give the necessary minimum development of the project idea.

Provide an overview of the most relevant inputs, tools and techniques and outputs for the following knowledge areas:

• Project Quality Management

Guide participants using templates and specific tools and techniques to the realisation of at least the outlinesof the

• Plan Quality Management

These documents will give the necessary minimum development of the project idea.

Provide an overview of the most relevant inputs, tools and techniques and outputs for the following knowledge areas:

• Project Human Resources Management

Guide participants using templates and specific tools and techniques to the realisation of at least the outlinesof the

• Project human resource plan

These documents will give the necessary minimum development of the project idea.

Provide an overview of the most relevant inputs, tools and techniques and outputs for the following knowledge areas:

• Project Communications Management

Guide participants using templates and specific tools and techniques to the realisation of at least the outlinesof the

• Project communications plan

These documents will give the necessary minimum development of the project idea

Provide an overview of the most relevant inputs, tools and techniques and outputs for the following knowledge areas:

• Project Procurement Management

Guide participants using templates and specific tools and techniques to the realisation of at least the outlinesof the

• Conduct Procurements

These documents will give the necessary minimum development of the project idea.

Provide an overview of the most relevant inputs, tools and techniques and outputs for the following knowledge areas:

• Project Stakeholder Management

Guide participants using templates and specific tools and techniques to the realisation of at least the outlinesof the

• Identify Stakeholders

These documents will give the necessary minimum development of the project idea.

Understanding projects and project management

Define Project Risk, risk attitudes and risk response. Differentiate between risks, causes and effects.

An overview of Project Risk Management:

• Plan Risk Management
• Identify Risks
• Perform Qualitative Risk Analysis
• Perform Quantitative Risk Analysis
• Plan Risk Responses
• Control Risks

You will learn the specific risk management templates and refresh work technique for effective learning and skill transfer.

Understanding Project Risk Management

Present the process and the overview of inputs, tools and techniques and outputs.

Present the benefits of planning risk management over the project life cycle

Present and explain the plan risk management inputs:

• Project management plan
• Project charter
• Stakeholder register
• Enterprise environmental factors
• Organizational process assets

Discuss the use of such inputs in tools and techniques that will realise predicted output

Present and explain Plan Risk Management: Tools and Techniques:

• Analytical techniques
• Expert judgment
• Meetings

Preview the tools and techniques as part of the Plan Risk Management Process.

Present and discuss plan risk structure and content:

• Methodology
• Roles and responsibilities
• Budgeting
• Timing
• Risk categories
• Definitions of risk probability and impact
• Probability and impact matrix
• Revised stakeholders’ tolerances
• Reporting formats
• Tracking

Facilitate practice of project risk management plan by integrating all previous work.

Plan Project Risk Management

Present and discuss Identify Project Risks as the process of determining which risks may affect the project and documenting their characteristics.

Present and discuss the key benefits of Project Risk Identification Process.

Present and discuss the an overview of the inputs to the process of Risk Identification:

• Risk management plan
• Cost management plan
• Schedule management plan
• Quality management plan
• Human resource management plan
• Scope baseline
• Activity cost estimates
• Activity duration estimates
• Stakeholder register
• Project documents
• Procurement documents
• Enterprise environmental factors
• Organizational process assets

Practice on identification of key participants for risk identification, process iteration and risk statement

Present and discuss tools and techniques for Risk Identification:

• Documentation reviews
• Information gathering techniques
• Checklist analysis
• Assumptions analysis
• Diagramming techniques
• SWOT analysis
• Expert judgment

Present and discuss the Risk Register structure and content as output of Identify Risks process:

• List of identified risks
• List of potential responses

Identify Project Risks

Present and discuss the overview of the Qualitative Analysis of Project Risks process. Present and discuss the key benefits of Qualitative Analysis of Project Risk Process.

Present and discuss the inputs to Qualitative Analysis of Project Risks process and the specific relevance for this process:

• Risk management plan
• Scope baseline
• Risk register
• Enterprise environmental factors
• Organizational process assets

• Risk probability and impact assessment
• Probability and impact matrix
• Risk data quality assessment
• Risk categorization
• Risk urgency assessment
• Expert judgment

Present and discuss the necessary Project Documents Updates resulted from Qualitative Risk Analysis:

• Risk register updates
• Assumptions log updates
• Practice project Document Updates.

Perform Project Risks Analysis

Present and discuss the Quantitative Risk Analysis process and the specific benefits in terms of decision making. Introduce main tools and techniques.

Present and discuss the inputs to Perform Qualitative Analysis of Project Risks process:

• Risk management plan
• Cost management plan
• Schedule management plan
• Risk register
• Enterprise environmental factors
• Organizational process assets

Data Gathering and Representation Techniques

• Interviewing
• Probability distributions

Quantitative Risk Analysis and Modeling Techniques

• Sensitivity analysis
• Expected monetary value analysis
• Modeling and simulation
• Expert judgment

Present, discuss and practice Project Documents Updates resulted from Qualitative Analysis of Project Risks:

• Probabilistic analysis of the project
• Probability of achieving cost and time objectives
• Prioritized list of quantified risks
• Trends in quantitative risk analysis results

Perform Project Risk Analysis

Provide an overview of the Plan Risk Response Process and of the benefits of applying the specific tools and techniques.

Present and discuss inputs to Plan Risk Response process:

• Risk management plan
• Risk register

Practice the specific use of referred inputs to the process.

Present and discuss tools and techniques of Plan Risk Response process:

• Strategies for Negative Risks or Threats
• Strategies for Positive Risks or Opportunities
• Contingent Response Strategies
• Expert Judgment

Present, discuss and practice Project Management Plan Updates and Project Documents Updates.

Plan Project Risk Response

Present and discuss Risk Control Process in implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness and the process.

To determine if:

• Project assumptions are still valid,
• Analysis shows an assessed risk has changed or can be retired,
• Risk management policies and procedures are being followed, and
• Contingency reserves for cost or schedule should be modified in alignment with the current risk assessment.

Present and discuss inputs to Risk Control process:

• Project management plan
• Risk register
• Work performance data
• Work performance reports

Present and discuss Risk Control Tools and Techniques:

• Risk reassessment
• Risk audits
• Variance and trend analysis
• Technical performance measurement
• Reserve analysis
• Meetings

Present and discuss outputs of Risk Control process:

• Work performance information
• Change requests
• Project management plan updates
• Project documents updates
• Organizational process assets updates

Control Project Risks

The Planning Risk Management is part of a series of courses that together form the Risk Management Certification Program (PMI-RMP). The Program is PMBOK6 aligned and includes the courses on Identifying Risk, Analyzing Risk and Responding to Risk.

Project Management Process Group and Knowledge Area Mapping

Project Risk Management Overview

The projects you'll manage will face many different risks. First of all, let's define what we mean by risk. Project risks have two characteristics. They're events that might happen, and they have the potential to impact one or more of the project objectives.

In this topic we're going to use our definition of project risk to examine more closely what it means that project objectives would be impacted by unforeseen events.

For risk management to succeed, you must respond proactively to risks. If you only respond once an event occurs, you will waste time and resources needlessly trying to manage it.

Risk management has two central roles, reducing uncertainty about identified risks, and determining appropriate responses for when risk events do occur.

Plan Risk Management: Inputs, Tools & Techniques, and Outputs

Plan Risk Management: Data Flow Diagram

The Inputs to this process are Project charter, Project management plan, which includes All components, Project documents, which include Stakeholder register, Enterprise environmental factors, and Organizational process assets.

Imagine trying to manage a project where you aren't sure what the project's potential risks are. In order to effectively monitor and control the risks on a project, it is important to first plan for potential risks. To do so, you use specific tools and techniques. 

The plan risk management process has one output, the risk management plan. A typical risk management plan includes several important sections which are Methodology, Roles and Responsibilities, Budgeting, Timing, Reporting Formats, Tracking, and Risk Categories.

The risk management plan contains the overall plan for managing risk throughout the project's life cycle, broken down into different sections. In this topic, we're going to walk through a simple risk management plan. Tina is a project manager for a large urban hospital. 

Sample Risk Breakdown Structure (RBS)

An important part of the risk management plan is a section that defines how probability and impact will be defined for your particular project. This topic explains how to develop those definitions and create a probability and impact matrix. 

Example of Definitions for Probability and Impacts

Example Probability and Impact Matrix with Scoring Scheme

In this exercise, you'll demonstrate your ability to effectively manage potential risks by planning ahead and assessing their impact, probability, and cause. 

Course project (optional)

In the second course you're going to learn what inputs you need to look at in order to identify risks.

Identify Risks: Inputs, Tools & Techniques, and Outputs

Identify Risks: Data Flow Diagram

After completing this topic, you should be able to identify the inputs to the Identify Risks process.

After completing this topic, you should be able to identify activities that should be part of a document analysis to identify project risks

After completing this topic, you should be able to identify guidelines for conducting a brainstorming session to identify project risks.

After completing this topic, you should be able to recognize when interviewing is a good method for gathering risk information

After completing this topic, you should be able to match types of causes of project risk with examples.

After completing this topic, you should be able to categorize items that would be used to perform a SWOT analysis