2016 © Alin Veronika Plan Risk Management

2016 © Alin Veronika Plan Risk Management

The process of deciding how to approach and plan

risk management activities in the project

INPUTS TOOLS & TECHNIQUES OUTPUTS

•  Project Management •  Analytical Techniques •  Risk Management Plan

Plan •  Expert Judgement
•  Project Charter •  Meetings
•  Stakeholder Register
•  Enterprise
Environmental Factors
•  Organizational Process
Assets
2016 © Alin Veronika Plan Risk Management

Risk planning should begin

during the earliest stages of
project initiation and should
be completed early in the
project planning process

2016 © Alin Veronika Plan Risk Management

Project Management Plan

•  The risk management plan is also a component of the project management
plan. The project management plan provides baseline or current state of risk-
affected areas including scope, schedule, and cost that are needed to create
integrated risk management plan.
Project Charter
•  The project charter can provide various inputs such as high-level risks, high-
level project descriptions, and high-level requirements. In this document, you
can also find the assumptions that have to be understood and validated by
project manager in order to successfully manage risk.
Stakeholder Register
•  The stakeholder register, which contains all details related to the project’s
stakeholders, provides an overview of their roles, interests and powers that
play significant roles in influencing project objectives.
2016 © Alin Veronika Plan Risk Management

Condi&ons, not under the immediate control of the team that

influence, constraint, or direct the project, program or
por8olio
Stakeholder risk Organiza6onal culture,
tolerances structure, and governance

Poli6cal climate Government or

industry standards

EEF

Marketplace Infrastructure
condi6on

Exis6ng human resources

2016 © Alin Veronika Plan Risk Management

Get the templates, risk

categories, common OPA’s categories
definitions, risk statement
formats, roles and
responsibilities, lesson
learned, etc.

Processes and Procedures Corporate Knowledge Base

§  Guidelines & criteria for standard processes &
§  Configura6on management knowledgebase
procedures §  Financial databases
§  Policies, product & project life cycles, and §  Historical informa6on & lesson learned
quality polices & procedures
knowledge bases
§  Templates §  Issue & defect management databases
§  Procedures in execu6ng, monitoring &
§  Process management databases
controlling process, i.e. change control, §  Project files from previous projects
financial, issue & defect, communica6on, risks,
etc.
§  Project closure guidelines or requirements
2016 © Alin Veronika Plan Risk Management

•  Analytical Technique
–  Use to understand and define the stakeholder risk
attitudes and the strategic risk exposure of the project.
–  The project team can allocate appropriate resources
and focus on the risk management activities
2016 © Alin Veronika Plan Risk Management

•  Expert Judgment
–  Expert Judgment is powerful tools to be used in almost
every process.
–  Experts can be: Senior management, project
stakeholders, Project managers who have worked on
projects in the same area (directly or through lessons
learned), Subject matter experts (SMEs) in business or
project area, Industry groups and consultants, and
Professional and technical associations.
2016 © Alin Veronika Plan Risk Management

•  Use for discussions and

brainstorming.
•  Discussions at the initial
planning meeting may
i n c l u d e r i s k
responsibilities, definitions
o f m e t h o d o l o g y,
clarification of definitions
and terms, and the
impact of risks on project
objectives.
2016 © Alin Veronika Plan Risk Management

•  Is a roadmap to the other five risk management process

•  Defines:
–  What level of risk will be considered tolerable for the project
–  How risk will managed
–  Who will be responsible for risk activities
–  The amount of time and cost that will allocated to risk activities
–  How risk findings will be communicated
•  A description of how risk will be categorized
•  Direction on how Project Risk Management will be
integrated with all other project management processes
•  Key thresholds that will guide subsequent risk
management activities
2016 © Alin Veronika Plan Risk Management

Component Description
Methodology Defines the approaches, tools, and data sources that will be
used to perform risk management on the project
R o l e s a n d Defines who will do what. Example who will identify project
responsibilities risks, and evaluate them.
Budgeting How will the cost of risk be incorporated in the cost baseline?
How will Contingency Planning occur?
Timing Defines when you are going to perform risk management
process (identification, assessment, response and control and
how often those processes will be performed
Risk Categories Sources of risks are usually organized in a Risk Breakdown
Structure (RBS). The RBS is a hierarchical representation of
risks according to their risk categories, i.e. assigning risk by
time, scope, cost, and/or quality.
2016 © Alin Veronika Plan Risk Management

Component Description
Definitions of riskProbability means the chances a risk even will occur, whilst impact is
p ro b a b i l i t y a n d
the consequences of the risk event to the project objective, i.e. cost,
impact time, scope, and quality.
P ro b a b i l i t y a n d
Use a grid for mapping the probability of each risk occurrence and its
impact matrix impact on the project’s objectives to prioritize risks. The specific
combinations of probability and impact that lead to a risk being rated as
“high,” “moderate,” or “low” importance is usually set by the
organization.
Revised From Enterprise Environmental Factors (EEF), you will find stakeholders’
stakeholders’ tolerances and thresholds. However, you need to revise the tolerance
tolerances for the specific project at hand.
Reporting formats What reports, templates, documents are use to record risk? How the
outcomes of risk management process will be documented, analyzed
and communicated?
Tracking How risk activities will be recorded for the benefit of the current project?
How risk management processes will be audited? How will lessons
learned be captured and shared?
2016 © Alin Veronika Plan Risk Management

•  A group of potential cause for risk, which can be grouped into categories such as
technical, political, external, project, environmental, and others
•  In order to systematically identify risks to a consistent level of detail, use the form
of a simple list of categories or a risk breakdown structure (RBS)

Schedule risks

Cost risks
Scope risks

Quality risks
Risks Failure to Failure to Failure to
associated with complete tasks complete tasks complete tasks
changes of to the required within the within the
scope, or the level of estimated time estimated
subsequent technical or limits, or risks budget
need for "fixes" quality associated with allowances
to achieve the performance dependency
required network logic
technical
deliverables
2016 © Alin Veronika Plan Risk Management

Project Risk

Proejct
Management Technical External Organizational

Communication Requirement Political Logistical

Change in Project
Planning Technology Suppliers Dependecies

Performance and
Executing Reliability Enviormnmental Prioritization

ROI Complexity Goverment Funding

Market Shift Resources

Regulatory
2016 © Alin Veronika Plan Risk Management

I.  Project summary and description

II.  Approach to Risk Management
III.  Application
IV.  Other Relevant Plans
V.  Conclusions and Recommendations
VI.  Approvals
2016 © Alin Veronika Plan Risk Management

1.1. Project Summary

1.1.1. Project & Organizational Objectives
1.1.2. Operational & Technical Characteristics
1.1.3. Key Functions
1.2. Project Descriptions
1.2.1. Requirements
1.2.2. Schedule
1.2.3. Special Contractual Requirements
2016 © Alin Veronika Plan Risk Management

2.1. Definitions
2.1.1. Technical Risk
2.1.2. Scope Risk
2.1.3. Cost Risk
2.1.4. Schedule Risk
2.1.5. Quality Risk
2.1.6. Supportability Risk
2.2. Risk Assessment Methods Review
2.2.1. Techniques Applied
2.2.2. Implementation Results
2016 © Alin Veronika Plan Risk Management

3.1. Risk Assessment

3.1.1. Risk Identification
3.1.2. Risk Quantification
3.1.3. Risk Prioritization
3.2. Risk Response Development
3.3. Risk Response Control
3.3.1. Control Evaluation
3.3.2. Risk Documentation