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Rita Mulcahy- Risk Management - Ebook download as PDF File .pdf), Text File . txt) or read book online. risk. Download Ebook Risk Management Tricks of the Trade for Project Managers and Pmi-rmp Exam Prep Guide [FREE] Registrer - By Rita Mulcahy. If you want to make a big difference on projects, risk management is it. This practical and easy-to-use Course in a Book by Rita Mulcahy, author of the best.

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Rita Risk Management Ebook

Rita Mulcahy's Risk Management Tricks of the Trade for Project Managers by Rita Mulcahy, , available at Book Depository with. Home / Project Management / PMP / PMP Rita Mulcahy Book – % Resources Management; Communications Management; Risk Management + Pages PMP eBook PDF in your email right after your download!. Risk Management: Tricks of the Trade for Project Managers: A Course in a Book . I think Rita has written too many boring PMP exam prep books. This one is as .

Containi As the recipient of the Professional Development Product of the Year Award from the Project Management Institute PMI , this practical and easy-to-use Course in a Book is based on years of project experience and teaching risk management to IT, IS, construction, new product development, aerospace, manufacturing, e-business, pharmaceutical and utility professionals. Containing Tricks of the Trade from over worldwide contributors, this book offers templates, checklists and practical real-world examples that you can use to make an immediate impact in your current project. The book also contains over 1, sample risks and risk categories, as well as new topics and risk-related innovations never before in print. Highlights of Risk Management, Tricks of the Trade for Project Managers, include: Tricks of the Trade from worldwide contributors and international risk management researchers; A proven methodology that prevents many of the problems faced on projects and shows how to manage risks--not simply what to do; Over one thousand sample risks and risk categories that will help you identify risks that you have not previously thought about; Practical templates that you can adapt to your projects RIGHT NOW; Exams, games and exercises that utilize adult and accelerated learning theory to increase your knowledge in fast and fun ways; Information to help you prepare for the Risk Management portion of the PMP and CAMP exams; and Risk-related subjects and innovative tricks never before in print! Very different than anything else available, this book is a MUST HAVE as the primary text for Risk Management courses and for project managers looking for a clear and effective way to apply Risk Management to their projects.

Nominal group technique. The process of determining how well a risk is understood is called: Qyalitative risk analysis. Data quality analysis. Earned value analysis. Assumptions testing. Monte Carlo simulation is: A method of identifYing risks.. A response to risks not identified in the planning process.

A way to calculate expected monetary value of risks. A method of analyzing the probability of completing the project within a range of time or cost. Referring to historical records ofpast, similar projects. Utilizing the Delphi technique.

Network diagram analysis.. Interviewing experts. Which of the following is a risk response strategy for both threats and opportunities? Transfer B. Accept C. Mitigate D. A secondary risk is a risk that: Has occurred twice during the project. Is generated by a response to another risk. Is not identified before it occurs. Is addressed by a fallback plan. Contingency reserves can be used: To deal with unplanned risks that occur. Only with management's approval.

To deal with specific risks as planned. By the project team as needed. A risk trigger is: An individual assigned to manage a specific risk. An indication that a specific risk has occurred or is about to'occur.

An impact of a risk that is greater than expected. A risk that is planned for, but does not occur, during the project. A risk review: Looks forward in time to ensure existing risk response plans are adequate. Evaluates the effectiveness of the team's risk management efforts. Indicates that an identified risk is about to occur. Is an evaluation by the project manager of the work done by risk owners. Project scope statement. A work breakdown structure is used to help identifY the work to be done and therefore allows risks to be identified by work package, a more detailed level than only identifYing risks by project.

The Perform Qrantitative Risk Analysis process is a more detailed, numerical method of analyzing risks. Depending on the size and priority of the project, the time and effort required to complete this process may not be worthwhile or necessary.

Notice that choice D includes addressing threats AND opportunities. It is more inclusive than choice A, and therefore more accurate. Subjective evaluations of risk are done during the Perform Qralitative Risk Analysis process. The purpose of the Perform Qualitative Risk Analysis process is to take the long list of risks created in the IdentifY Risks process and determine which Ones warrant further analysis. These risks comprise the short list. The process of risk management removes many of the things that can go wrong on a project and finds ways to save time and cost.

Therefore, the project can generally be completed faster and cheaper. All stakeholders should be involved in the risk management process, including the identification of risks. It is important to have input on risk identification from a variety of sources, to ensure that all possible risks are identified.

Constraints choice B are facts, not risks. Risks are opportunities or threats that might affect the project for better or worse choice A and not problems that have already occurred choice C. Risk resolution generally does not require the involvement of the sponsor choice D. Choice A is the only choice that describes items needed before you can do risk management.

Calculations choice D are not required. This is the definition of assumptions choice B. Assumptions must be investigated and their validity determined, as incorrect assumptions can negatively impact the entire risk management process. Choices A, B, and C are incorrect statements regarding historical records. Historical records are best used as a starting point, and adapted by the project manager. Policies and procedures choice B are parts of organizational process assets, and not specifically historical records.

Choice D is the correct answer and describes the value of reviewing historical records from past projects. All of the choices except choice B are possible ways the PMO may be involved in a project. The project charter is authorized by the project sponsor. The definition of risk averse is "unwilling to accept risk. These are all tools the project manager can use with the team and stakeholders in the IdentifY Risks process.

Facts are addressed in other parts of project planning. The Delphi technique involves getting opinions from multiple experts, compiling the results and then sending the feedback back to the experts until consensus is reached. This technique identifies risks that require further investigation. Although th"'.! All of the other choices may be used for that purpose. Transfer choice A and mitigate choice C are response strategies for threats.

Exploit choice D is a response strategy for opportunities. Secondary risks must be identified in the Plan Risk Responses process, and response strategies must be created Q llting'Ol1cY..!! A risk trigger is an indication that a risk has occurred or is about to occur. The individual assigned to each risk is the risk owner. This person is responsible for watching for triggers and carrying out the risk response if the risk occurs.

Choice A is the correct definition of a risk review. T wored risk. Risk management involves minimizing the consequences of adverse events as well as maximizing the results of positive events.

Therefore, risks can be good or bad events, referred to in this book as opportunities or threats.

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It is essential that potential good events opportunities are included in risk management. Such identification allows the team to take advantage of opportunities presented by the project. The things that go right cheaper parts, an activity completed faster than scheduled are what give you an edge over the things that go wrong. Risk management is a part of the project management process, and consistently following that process is important for getting results. It allows you to take control of the project, rather than letting the project conttol you.

If the early steps of the project management process are not followed, the benefits of the later steps will not be realized. The six individual risk management processes are outlined next. They will be described in detw in the following chapters. Plan Risk Management This process focuses on determining how risk management will be done on the project, who will be involved, and the procedures to be used.

Identify Risks In this process, the stakeholders are involved in making a long, comprehensive list of specific risks threats and opportunities.

This does not mean five items, but hundreds of items. Risks to the entire project are identified, but risks are also identified at a lower level-by work package or by activity. Perform Qualitative Risk Analysis This process includes subjectively analyzing the risks obtained in the Identify.

Perform Quantitative Risk Analysis If it is necessary for the project, this process is performed.! Ql1ulnerically analyzetJ: Monitor and Control Risks In this process, the risk response plans are implemented as risks occur throughout the course of the project. It includes looking for risk triggers, identifying new risks, and evaluating the effectiveness of risk responses.

It is repeated throughout the life of the project. Therefore, risk identification starts in initiating. It is heavily addressed during project planning and continues during project executing and monitoring and controlling,.

Each of the individual risk management processes should be done as completely as possible and then fine-tuned through iterations. There are two types of risk: Business risk: Arisk ofa gain or loss e. Pure insurable risk: In any case, a risk is something that is less than percent certain-if it is afact, it is not a risk!

Risk management involves determining the following risk factors: The likelihood that a risk threat or opportunity will occur Impact consequence: The effect on the project if the risk threat or opportunity occurs Expected timing: When during the life of the project the risk threat or opportunity might occur Frequency ofthe event: How many times the risk threat or opportunity might occur during the life of the project.

Risks are identified early in the project, but most do not impact the project until later see the following diagram. Therefore, the risk management process helps prevent future problems from occurring. The following chart shows the entire risk management process that is described in this book.

Use this chart to help make sure you understand how each part of the process fits together. Risk management should be used on all projects. Risk management is an iterative process that recurs throughout the life of the project. Key J Jrd. Risk management process i "-J 1O. Plan Risk Responses process ",-,- ;.

Rita Mulcahy- Risk Management

Uncertainties rt Monitor and Control Risks process 3. Risks Iterative Business risk y 5. Opportunities Plan Risk Management process 'I- Risk factors c 7.

Identify Risks process Perform Qyalitative Risk Analysis Impact f process. Perform Qyantitative Risk Analysis process. Definition A. Repeated throughout the life of the project E.

Numerically analyzing the risks obtained in the Identify Risks process and analyzing the B. A systematic and proactive approach to extent of overall project risk taking control of projects by understanding or decreasing the uncertainties F. Determining how risk management will be done on the project, who will be involved, C. Determining specific risks by project and by and procedures to be used activity G.

A risk of a gain Or loss D. Implementing the risk response plans L. Possible events that may positively or as risks OCCUI, looking for risk triggers, negatively impact a project identifying new risks, and evaluating the effectiveness of risk responses M. The likelihood that a risk threat or opportunity will occur I. Possible events that may positively impact a project N. A risk Ofl Determining what can be done to reduce o.

Probability, impact, expected timing, the overall risk of the project by decreasing frequency of the event the probability and impact of the threats and increasing the probability and impact of P. The effect on the activity or the project if the opportunities risk threat or opportunity occurs. Subjectively analyzing the risks obtained Q.

Possible events that may negatively impact a in the Identify Risks process and deciding project which risks warrant a response; creating a "short list" of risks. How do you currently manage risks on your real-world projects?

Why is following a process so important for achieving successful results? Why should risk management include an analysis of things that could go right in addition to things that can go wrong? Why should a company require that any risk that is 80 percent or more probable be considered a fact and included as a constraint in the project management plan?

An input is something that must be done or information that must already have been collected before you can adequately complete the next process. This is important! If risk management is going to be fast and effective, certain other items must be available before you begin. Inputs are listed here because they are used throughout the risk management process.

If you do not understand these after reviewing the following introduction and exercise, I suggest you spend a little more time understanding project management before you delve into risk management.

Exercise Test yourself! Explain why each of the following inputs to risk management are needed before you can adequately complete the risk management process. Stakeholder register Stakeholders from within your performing organization Stakeholders from outside of the performing organization Project scope statement.

Project constraints Outputs from project planning for your project. Outputs from project planning Communications for yOUT project management plan. Risk management policies, procedures, templates. Historical records from previous projects. Lessons learned from Organizational previous projects process assets. Answer The following is a detailed summary of these inputs. Spend more time on this if you have not had recent training in project management. Read carefully, and look for tricks to add to your list in the next few pages!

The Project Management Process In order to complete projects faster, cheaper and with the highest quality, effective risk management must occur within a properly executed project management process. The project management process begins with initiating, where the project charter is created and the stakeholders are identified. Project planning then involves creating a project management plan that is bought-into, approved, realistic, and formal.

Executing involves completing the project to the plan and coordinating and facilitating the project team in completing the project work. Monitoring and controlling involves measuring progress against the project management plan.

Executing and monitoring and controlling often overlap in time during the project management process. In closing, fmal acceptance is achieved and lessons learned and other historical records are created. Risk management fits into the project management process as shown in the following chart.

Select project manager II Determine company culture and existing Complete procurement systems I.. Produce product scope closure. Collect processes, I Finalize requirements II.

Request changes Gain formal acceptance procedures, and of me product historical information Create project scope.. Implement only statement approved changes Complete final Divide large projects performance reporting into phases Determine what to..

Ensure common download understanding ". Index and archive ".

Risk Management Tricks of the Trade for Project Managers + PMI-RMP Exam Prep Guide by Rita Mulcahy

Understand the business records 'Me I ". Determine team.. Use the work authorization system ". Update lessons learned ". Continuously improve ". Hand off completed Create measurable Create activity list II. Follow processes product. Release resources. Develop st: Acquire final team Manage people ". Inform stakeholders of ".

Develop schedule.. Evaluate team aud approved changes. Develop budget.. Hold team-building Manage configuration. Determine quality activities standards, processes, and metrics.. Give recognition and ". Gain acceptance of rewards interim deliverables from ". Create process the customer improvement plan I".

Use issue logs II". Perform quality control.. Facilitate conHlct resolution ". Report on project performance I ". Plan communications ". Send and receive information I: Hold meetings I ". Select sellers ". Administer procurements. Gain formal approval of the plan. Hold kickoff meeting RMC Publications, inc. Project Background Information Information such as correspondence from before the project was approved, articles written about similar projects, and other such information will help identifY more risks.

Though there are many steps in risk management, it does not need to be a lengthy process. To shorten the time, it is important to locate all relevant information before beginning the planning component; otherwise mistaken assumptions and miscalculations will affect your risk management efforts.

Depending on the size ofyour project, you might consider collecting such information as: Corporate objectives Corporate risk management policies or procedures Priority of this project compared to all others Answers from management and the customer to as many of your questions about the project as possible so that you are clear about the project charter, constraints, and issues related to the project Supporting data for management's time or cost objectives if available Experts Who are they?

How can they assist the project team with the customer, the project scope of work, and project management? Articles or publications on risk Cultural issues and suggested protocol, language barriers, and social customs Review of documentation relevant to the project: All e-mails and meeting minutes from before the project was approved, including those from the customer Technical and project management literature or articles Copies of contracts, standards, or regulations related to the project Technical drawings and specifications Organizational charts Resumes ofpotential team members Marketing or sales reports.

The following are questions about project background information to consider when identifYing risks: What would e-mails tell you? Have you ever read the contracts related to your projects? Gom W'Mo'J. Effectively Begin Risk Management a How does your project relate to the strategic plan of your organization? What is the level of management support for your project? How do you know you have a clear understanding of the requirements and expectations of management and the customer?

A project charter should be issued by management for every project. It should be nomoie ihantWosides ofa page ;S, and contain the following information:. The following are questions about the project charter to consider when identifYing risks: What is included in the project charter?

What is not included? How clear are the information and directions? Are the project objectives achievable? What is the degree of difficulty in completing the work described in the project charter?

What is the level of the project manager's authority? Stakeholders are individuals and organizations who are actively involved in the project or may affect or be affected by the project. The names, skills, abilities, and needs of the individual stakeholders are determined early in the project and documented in a stakeholder register. This document is updated throughout the project, as more information about the stakeholders and their preferences becomes known.

Since stakeholders will be affected by the project, they have an important role in risk management. Stakeholders outside of the team will be able to see risks that the team cannot. They can assist in each step of risk management and may even be assigned as the owners of some risks. Thus, they have specific roles and responsibilities. Documented information about stakeholders, their communication styles, and preferences will be an asset during the Identiry Risks process and throughout the project.

It is important to understand the roles of all stakeholders, who is assigned to each risk, and what level of authority the project manager and others have on the project. The following are questions about stakeholders to consider when identifYing risks: To perform risk management, it is important to have a finalized project scope statement that describes the complexity of the project.

The following are questions about the project scope statement to consider when identifYing risks: Project Constraints '! Examples include: Complete the project by June Complete all the work listed. There should be no more than three bugs per module.

The risk score for the project should be no more than 60 on a 0 to 80 scale. Effectively Begin Risk Management. Only three resources from the marketing department may be used. The customer satisfaction rating throughout the project should be at least 8. The following are questions about project constraints to consider when identifYing risks: After a high-level review, do any constraints on this project appear to be unrealistic? How does a constraint in one area affect other areas of the project?

Assumptions are things that are accepted as true, but that may not be true. Project assumptions may increase or decrease risks and help in determining risk impacts. Such beliefs or opinions about the project must be identified. The validity of the assumptions will be tested later in risk management, during the Perform Qyalitative Risk Analysis process. The following are questions about assumptions to consider when identifYing risks: What assumptions might prove to be incorrect later in the project?

How can you prevent problems by clarifYing assumptions early? A work breakdown structure WBS is one of the key outputs of project management planning. It is an input to other processes and is essential for all projects. The work breakdown structure decomposes the project into smaller, more manageable pieces, called work packages.

A work breakdown strucmre can be created using many tools, but is often created using sticky notes with the project team. Many project teams mistakenly believe that risk management is only a high-level evaluation of the risks of the project. Instead, risk management concentrates on identifYing the risks of the work packages and associated activities, as well as the overall risks of the project!

The following are questions about the work breakdown structure to consider when identifYing risks: Are there any particularly risky work packages? How difficult was it to complete the WBS and to gain agreement or download-in? Based on the WBS, are the time and cost requirements achievable? Is any part of the scope incomplete or not achievable? A netl'v2!

The network diagram shows the flow of activities to be completed from project beginning to end, based on the dependencies between the activities. This tool can be used to decrease project duration by organizing the activities into parallel activities activities that can be done concurrently.

A simple network diagram may look like the following:. Once dates are assigned to each activity, it becomes a time-scaled schedule network diagram. The time-scaled schedule network diagram helps determine the critical path and the probability of completing the project within the required time objectives for the project; thus, it is a tool to help determine risks.

Effectively Begin Risk Management a To evaluate risks, look at the network diagram for: Estimates that contain padding or other hidden uncertainties add risk to the project. Path convergence: Places on the network diagram where many paths lead into one activity. Such convergence makes the activi! The allocation ofresources and their skills: An inexperienced person assigned to an activity on the critical path adds risk to the project.

You may be able to move the resource to another activity that is not on the critical path to decrease that risk. Paralld activities: Parallel activities must be able to be completed at the same time in order to decrease risk. The critical path: The length of the critical path must be within the allocated time for the project. The number ofnear-critical paths: A near-critical path is close to the critical path in duration. Near-critical paths add risk to the project. Dependencies should be appropriate and logical to minimize risk.

Estimates for Time and Cost In order to minimize risk to the project and to improve accuracy, estimates are created by the people doing the work, whenever feasible, and are based on the work packages identified in the work breakdown structure or the activities within those work packages. Many project managers make the mistake of determining with the team one time estimate for each activity.

Studies have shown that a schedule based on one time estimate per activity is only 5 to 15 percent likely to succeed!

Rita Mulcahy's risk management tricks of the trade for project managers

Time and cost estimates should be based on three estimatesoptimistic, most likely, and pessimistic. The result is an indication of the risk involved in the estimate. This tells you that there are more risks to be identified, and then eliminated or decreased.

To take this process a step further, let's say you need to shorten the activity or project time estimate. Why make the mistake of encouraging padding in future estimates and angering team members by telling them that they will have to complete the activity in a shorter period of time? Instead, identifYing, eliminating, or decreasing the risks in the estimate will decrease the time estimate s and provide the project and the team members with a win-win situation.

The most professionally responsible way to shorten or decrease estimates is through identifYing and eliminating risks by following the risk management process. The process of risk management can actually shorten the project schedule and decrease project cost! The following are questions about time and cost estimates to consider when identifYing risks: Who created the estimate? What is the estimator's knowledge of what they estimated?

What is the estimator's confidence level regarding the estimate? Is the estimate based on detailed activities or work packsges? Is the estimator generally overly-optimistic? What method was used for estimating? Does the estimate include padding? The human resource plan is a formal plan identifYing when and how the team and other stakeholders will be involved in the project, and what roles they will perform.

The following are questions about the human resource plan to consider when identifYing risks: Does such a plan exist? Are there any troublesome stakeholders involved? Are there any high-in-demand stakeholders involved?

Remember that in a matrix environment team members may not be exclusively assigned to one project. The project manager will have to negotiate and communicate with functional managers to get, and keep, the people they need for the project. What is the knowledge level and skill set of the stakeholders? Will they need additional training?

Communication is a critical part of successful risk management. The communications management plan is created by the project manager and becomes p;;;: The creation of a communications management plan involves an. The plan may include the following information: What information needs to be collected and when Who will receive the information The method that will be used to gather and store information Limits, if any, on who may give direction to whom Reporting relationships Stakeholders' contact information The schedule for distribution of each type of communication Preferred methods of communication.

The information in the communications management plan should include the communication of risks and risk management activities, and results of formal communication should be documented and reported throughout the risk management process.

Specific communication checkpoints include: When the charter is finalized When the work breakdown structure is created When risks are qualified and a risk score is determined When risk response plans are created Throughout completion of the project When creating the montWy report When creating team meeting agendas and meeting minutes.

The following are questions about the communications management plan to consider when identifYing risks: Do you have people on your team who are poor communicators? What areas need specific and careful management of communications? Where are you most likely to have communications problems? How do you know your methods of communication are most effective for the stakeholder and the situation? Procurement Management Plan A procurement management plan is a formal or informal plan for a project that describes what part s of the project will be downloadd under contract or download order.

It also includes a plan for managing the sellers on a project. Procurements can be used to transfer risk, but they can add risk if the contracts were not created based on the needs of the project and with input from the project manager. The following are questions about the procurement management plan to consider when identifying risks: Were you involved in creating the contract before it was signed? Was risk management done before the contract was signed?

What is your level of expertise in managing contracts? Have you worked with the sellers before? What are the particular terms and conditions of the contract? What are the deliverables and performance periods? Organizational Process Assets Risk Management Policies, Procedures, and Templates A company should already have in place company policies, procedures, and templates for risk management. These guidelines address such topics as procedures for risk management, forms to be used, processes to be followed, and a definition of standard roles and responsibilities.

Such procedures and templates should be high-level in nature and should be adapted by the project manager to the needs and nature of each particular project. Common templates and procedures include: People are constantly looking for templates, as if the right template will make a great project manager. Doing risk management well takes cognitive skills.

Though some templates are provided in this book and can be helpful tools, remember that templates can. Historical Records from Previous Projects Only a small percentage of project managers have historical records.

It follows, then, that most projects start from scratch. What a waste of time! Can you imagine ifyou could have access to the brains and experience of everyone in your company? How helpful would it be to have a list of risks from all the recent projects your company or department has completed or is in the midst of? This is the value of historical records. Historical records may include the following information from previous, similar projects: Historical context of past projects and project phases e.

Lessons Learned from Previous Projects Historical records also include lessons learned, which document what went right, what went wrong, or what would have been done differently by past project teams if they could execute their projects again. Lessons learned can help identifY and manage risks on your project. Such information helps prevent rework on projects and helps ensure that the same mistakes are not made by other project teams.

It can also provide a sanity check on the project's risk efforts and shorten the time it takes to perform risk management on the project.

Like other historical records, lessons learned will also help make risk efforts on future projects easier, more complete, and more effective. The following are questions about organizational process assets to consider when identifYing risks: Has a project similar to yours been successfully completed in your organization?

What risks did past, similar projects experience? What policies and procedures are to be used that no one follows, or that could be misunderstood? How can existing policies and procedures help prevent problems on your project? What opportunities might your project have to improve organizational policies and procedures?

Risk Tolerance Areas. It is important to determine in what areas the company and key stakeholders are willing to accept risk. Other risk tolerances, such as the number of injuries, downtime, complaints, and more should also be determined in advance.

Risk tolerances are reviewed after risks are identified. II I I I 0 Identify Risks Process Stakeholders, project constraints, and project requirements are identified earlier in the project management process. This information will be used to help determine the impact of risks and the risk responses, The project manager may save time by collecting details on risk tolerance areas and thresholds at the same time that stakeholders and their project requirements are identified, See the following chart.

The risk tolerance and thresholds are prioritized on eac.: Key Concepts Inputs are things that must be done or information that must already have been collected before you can adequately complete risk management. Without the necessary inputs, some risks will remain unidentified. Effective risk management must occur within a properly executed project management process. Key Terms Inputs to risk management Procurement management plan. Project management process Organizational process assets.

Inputs to risk management Procurement management plan. Project management process Stakeholder register. Project background information Historical records.

Project team. Lessons learned I Expectations 6. Project charter. Project scope statement o Organizational process assets. Project constraints c 8. Work breakdown structure Assumptions E 9. Network diagram Estimates for time and cost Human resource plan Risk thresholds X Communications management plan Definition A.

A document that describes the approved C. A diagram that shows the decomposition of product and project requirements the project into smaller1 more manageable pieces B.

Those who will be executing the project management plan. A formal plan for when and how resources o. Company policies, procedures, templates, will be involved-in the project, and what and historical information roles they will perform P.

Things that are accepted as true, but may not E. A dependency-sequenced organization of the be true project's activities Q. Information from past, similar projects J F. Anything that limits the team's options, e. High-level directive from the sponsor customer satisfaction outlining the overall objectives of the project; it authorizes the existence of a. Things that must be done or information project that must be collected before you can adequately complete risk managel1 ent s.

Information about individuals and organizations who are actively involved in H. A formal or informal plan that describes the project or who may affect or be affected what partes of the project will be downloadd by the project under contract or download order; it includes a plan for managing the sellers T. The individual or group who authorizes the project and provides the financial resources I.

Amounts of risk the company and key stakeholders are willing to accept J. Information'from before the project was 1 approved, articles written about similar v. Stakeholders' needs or intents that may projects, and other such information be unstated, but are motivators or non- ' motivators for working on the project K. Initiating, planning, executing, monitoring and controlling, closing w. Areas in which the company and key stakeholders are willing to accept risk L. A formal plan documenting how and in what could execute their projects again form communications will be handled on the project M.

Unwilling to accept risk. Effectively Begin Risk Management a 1. Which of the inputs to risk management do you not have for your real-world projects? How will you go about getting or creating them? What inputs do you not understand? How will you refresh your project management knowledge before reading more about risk management? Why do you need a project scope statement, communications management plan, and procurement management plan before you can identify risks?

It involves deciding how to proceed, who should be involved, when risk management activities should be done during the project life cycle, and how frequently they should be done. Create a plan for handling risk management for the project Adapt any policies and procedures for risk to the needs of the project Tailor risk management activities to the needs of the project to make sure the level, type, and visibility of the activities are commensurate with: The type and size of the project The experience of the project team The perceived level of project risk The importance of the project to the organization.

The number of unidentified risks that occ";;: Plan Risk Management. The Importance of This Process In my research, I have found that many project managers have difficulty convincing management and the team of the value of this planning process. People involved in the project may be more interested in beginning what they consider to be the "real" work of the project.

However, in order for the risk management process to flow smoothly and produce a clear picture of the project risks, it is important to think about how the process will be completed BEFORE getting started. Therefore, the Plan Risk Management process allows the work, when it is done, to be completed faster, easier, and more effectively. With proper planning, you are less likely to miss something important! So do not skip risk management planning.

If you do, the project-and particularly quality-will be negatively affected. The 9! Elan, do,.. Who Is Involved To effectively perform risk management, the project team as well as the stakeholders should be involved. The project manager directs the risk management planning process and may seek input from the sponsor, management, the project team, other stakeholders, and the project management office or a governance body, if one exists in the organization.

Project Management Office The project management office, also referred to as the PM0, is a department that supports project management within an organization.

For risk management, the project management office may provide the following: Activity estimating forms Procedures regarding who needs to approve risk response plans Procedures regarding the involvement of stakeholders in risk management Standard probability and impact scales. Rules for contracting and including risk management in the procurement process Direction on when risk audits should be done and who should be involved Structure for the collection and dissemination oflessons learned Processes to incorporate the results of risk audits and lessons learned into the company Oversight assistance for measuring the effectiveness of corrective action Metrics to measure the effectiveness of the risk process.

Risk Management Department In some organizations, there is a separate risk management department to address project risk, not other kinds of risk management. It may supply policies and provide assistance with project risk management efforts. This department generally performs functions similar to those of the project management office in the management of large projects.

It mentors and coaches project managers on the use of risk management and ensures that risk management is done properly and given the appropriate level of attention throughout all projects in the organization. Governance Body Organizations that are more evolved in terms of risk management may even have some form of governance body that would be responsible for any or all of the items attributed to the PMO and risk management department in the previous sections.

Risk Team On a large project, the project manager may require the help of others in managing risk. This group is called the risk team. It may include project team members, but not exclusively. For example, some stakeholders, the sponsor, and others could be on the risk team, depending on the needs of the project. The risk team solicits and considers everyone's ideas. II I I You may want to draw from your project team and any other stakeholders to form a team that will manage the potential range of risks on your project.

A I well-chosen risk team is one of the keys to identifYing and addressing risks throughout the project. Don't forget to consider the sponsor and the customer. II I I I Create a chart of responsibilities for individuals and groups working with the project manager on project risk activities. Such a chart with common responsibilities might look like the following:.

A Risk Management Plan Here is a creative way to understand risk management plans. Imagine your project at its end. List the risk management activities that will help get you there. Next to each one,. Now you have the beginning of a risk management plan.

The risk management plan may include: This section defines how you will perform risk management for the particular project. Remember to adapt to the needs of each project. Low-priority projects will likely warrant less risk management effort than high-priority projects.

Roles and responsibilities: Who will do what? Did you realize that non-team members may have roles and responsibilities regarding risk management? This section talks about when to do risk management for the project.

He replied to me and agreed to accept me as his first international student and sent me the study material. The training material consisted of one reference book, one drill book, one question bank, and a CD containing many audio recordings.

I had to go through these audio clips, books, and questions and then I sent him several assignments. It took around one month to complete the training program.

I was studying for four to five hours weekly. At that point, I started studying for two to three hours per day. I focused more on concepts instead of practice questions. The quality of questions for this simulator was outstanding and they were similar to the real exam. My preparation was going on in full swing, and the exam date was fast approaching. A day before the exam I called the Prometric center to find out the location, and I went there to ensure I had no problem finding the place.

They had changed their location since passing my PMP exam. I reached the exam center forty minutes earlier on the exam day, completed all the paperwork, and then started my test. The questions were more straightforward than the PMP certification exam, and most of them were from the risk management knowledge aspect. A few questions were about time management especially PEART , procurement, human resources, communications, and quality management. I took two breaks during the exam; I took the first break after I completed one hundred questions and I had the second break when I finished all the questions.

I used two and a half hours to complete the test. I spent the rest of the time reviewing questions and answers. I submitted the answers, after checking everything. A short survey followed the submission and then I was shown my result.

I left the examination hall, collect the report from the Prometric staff, and let out a sigh of relief. I strongly recommend you download a good PMP exam reference book and read it thoroughly from cover to cover if you are not a PMP.