Managing Project Risk

Description

Risk Management is a process which enables the analysis and management of the risks associated with a project. Properly undertaken, it will increase the likelihood of successful completion of a project to cost, time and performance objectives. Risk management saves time and money on a project. Risk Management put you in control of the project and not have the project controlling you. 

Prerequisites

None.
This course is suitable to both project managers, project engineers and senior managers. In fact anyone involved in a project or operation would benefit from taking this course. It is also a very practical course with participants practicing and implementing the learning after each section. We can use individual projects that are taken directly from their businesses so that they get real value add to their business in the training.

 

Learning Objectives:

Upon completion of this course; the participant will

• Be competent in managing project risk
• Apply approved Project Risk Management principles to their work.
• Have a risk register template ready to deploy
• Have identified actual risks and mitigation/contingency plans that they can directly deploy in their projects

Section 1: Introduction to Risk
What are the benefits of Risk Management
The Risk Management Process
Company position on Risk
Terminology: Primary, Secondary & Residual Risk
Mitigation and contingency

Section 2: Risk Management Plan
• Methodology: defines approach , tools, data sources
• Roles & Responsibilities
• Budgeting: cost to be included in cost baseline
• Timing: defines when and how often the risk mgmt process will be performed and defines risk mgmt activities for project schedule
• Definitions of risk probability & impact
• Reporting and Tracking
Exercise: Create a risk management plan
Exercise: Create probablility and impact matrix


Section 3: Risk Identification
Who to involve? Where to look?
Tools and techniques:
• Document Reviews
• Planning Meetings and Analysis
• Information gathering techniques

Brainstorming
Delphi technique

Interviewing
Root cause Identification
SWOT analysis
Checklist analysis
Assumption analysis

What is a Risk Register
How to use a Risk Register
When to a Risk Register
Using a Risk Breakdown Structure

Estimation: A big source of risk!
• What to watch out for in estimation
Exercise: Identify 10 risks on your project

Section 4: Qualitative Risk Analysis
Define & Use Qualitative Risk Analysis
• Produce a list of prioritized risks
• Determine which risks needs responses
• Determine risk probability and impact
• Determine the risk ranking for the project
• Determine which risks to assess further
Exercise: For the 10 identified risks; perform qualitative risk analysis


Section 5: Qualitative Risk Analysis
Define & Use Quantitative Risk analysis.
Getting senior management attention!
Tools & Techniques

• 3-point estimation and PERT.
• Sensitivity Analysis
• Expected Monetary Value
• Decision Trees

Communication with senior managers and Project stakeholders.

Section 6: Plan Risk Response
Brainstorming session and discussion – What can you do to change Probability and/or Impact of a risk.
How does the choice of response impact cost, time and other project parameters?
What about secondary and residual risks?

Strategies for negative risk or threat
• Avoid, Transfer, Mitigate, Accept
Strategies for positive risk or opportunity
• Exploit, Share, Enhance
Contingency Planning
Exercise: Create risk response plans for all identified risks.
Exercise: Risk responses.

Section 7: Monitor and Control Risks
What is involved

• Risk Reassessment
• Risk Audits
• Variance and Trend Analysis
• Technical Performance Measurement
• Reserve Analysis:
• Status Meetings

Closing

Discussion: What is the next step in making Risk Management Process part of your company process?
 

Class Length

1-2 Days



PMBOK, PMP, PgMP, CAPM, PMI-SP and PMI-RMP are registered marks of the Project Management Institute, Inc.