Pmp chap 11 - project risk management v0.1

By: Anand Bobade (nmbobade@gmail.com)
Learn Project Management & prepare for PMP exam:
• Learn visually
• Detailed coverage of all PMP concepts
• Sample Questions
PMBOK Chapter 11 :
Project Risk Management (Part 1)
Monitor & Control Risk
Monitoring
& Control
Planning
Plan Risk
management
Identify Risk
Perform Qualitative
Risk Analysis
Perform Quantitative
Risk Analysis
Plan Risk Response

Chap 11: Project Risk Management
L : Lesson
What is a Risk?
Story to understand Risk/Response.
Why Risk Management
Risk Management knowledge area Definition
Risk Management Processes
Processes in detail
Review
Self Assessment
Additional Resources
P1 P2 P3 P4 P5 P6

Risk is an uncertain event or condition that if occurs, has
a positive or negative effect on one or more project
objectives, such as scope, cost & quality.
Uncertain event
or condition
Effect Project objectives
Chap 11: Project Risk Management -> What is a Risk?

Family going on a Vacation; Hit by a risk, how they will
respond in absence of risk planning or with plan in
hand.
Family going
on Vacation
Car without
fuel
Tire Puncture
Chap 11: Project Risk Management ->Risk management Story

By: Anand Bobade (nmbobade@gmail.com)By: Anand Bobade (nmbobade@gmail.com)
Chap 11: Project Risk Management->Risk management Story
Risk planning:
• Family to discuss risks
& plan it
Identify Risk:
• Car Breakdown
• Lost key
• Accident
• Change in weather -
Rain
• Out of Fuel
Next
Slide

Analyze – Qualitative:
• Review identified Risks
• Access the probability
• Access the impact
• Combine Probability &
impact to derive score
• Prioritize risk
Analyze – Quantitative:
• Review prioritized risk
• Assign value (Cost/Delay
etc)
• Make alternative plans to
reduce risk & uncertainty
Next
Slide

Respond:
Risk Response Owner
Car breakdown Prepare Garage list Father
Out of Fuel Prepare Gas-station list Mother
Rain Plan Indoor activities Son
Risk
Register

With Proper Risk planning & response in place,
family is enjoying vacation.
Goal of risk management is to be more proactive & less reactive
Family going on
Vacation
Out-of Fuel-
Get Fuel from nearby
Gas-Station
Car Breakdown -
Call garage & get Tire
Replaced

Chap 11: Project Risk Management-> Why Risk Management
A PM work should not focus on dealing with
problems; it should focus on preventing them.
How would it feel to say, “No problem; we
anticipated this, and we have a plan in place
that will resolve it”.
Performing risk management helps prevent
many problems & helps make other problems
less likely.
Failure of PM to asses project risks is a major
cause of Project failure.

Chap 11: Project Risk Management->What is a Risk? Cont..
If there is 100% chance of an event occurring,
this would be an issue, not a risk.
Risks with negative consequences are called
threats.
Risks with positive consequences are called
opportunities.
Yes, risk can be good! Stop thinking of risk as
bad, & start thinking in terms of opportunities!

Chap 11: Project Risk Management ->Risk Types
Pure Risk (hazard):
• Risk with potential loss only.
• Ex. Fire, theft, personal injury
Business Risk (speculative risk):
• Risk with potential loss or gain.
• Ex. A new hardware costs less (or more) than you
budgeted for!

Chap 11: Project Risk Management ->Risk Source
Customer
Last of Project
management
efforts
Inexperienced
PM
Suppliers
Resistance to
change
Cultural
differences
contracts

Includes the processes of conducting the Risk
Management planning, identification, analysis, response
planning, & controlling risk on a projects.
Risk
Manage
ment
Plan
Identify
AnalyzeRespond
Control
Chap 11: Project Risk Management-> Definition

Chap 11: Project Risk Management -> Processes
11.1 Plan Risk Management
• Define how to conduct risk management
activities
11.2 Identify Risks
• Determine & document which risks may
affect the project
11.3 Perform Qualitative Risk Analysis
• Prioritize risks by analyzing their probability
& impact.

Chap 11: Project Risk Management -> Processes
11.4 Perform Quantitative Risk Analysis
• Numerically analyze the effect of identified
risks.
11.5 Plan Risk Responses
• How to respond to enhance opportunities &
to reduce threats
11.6 Control Risk
• Track risk, monitor residual risks, identify new
risks, & evaluate effectiveness of risk planning.

Chap 11: Project Risk Management -> Review
Risk Planning is iterative process
It should be initiated early in the project
lifecycle
Risk can be positive or Negative
PM has to constantly monitor risks &
responds it.
Its group activity
Risk may change during course of project
lifecycle

• Learn visually

Plan Risk Management - Definition
Why Risk management planning is important?
Plan Risk Management Processes: ITTO
What Risk Management Plan contains?
The Risk Breakdown Structure
Data flow diagram
Review
Sample Exam questions
11.1 I T&T O

The process of defining how to conduct risk
management activities for a project.
Ensures the degree, type & visibility of risk manag’t
commensurate with risks & importance of project.
11.1 Plan Risk Management -> Definition
11.1 I T&T O

Project Risk Management will help you:
Reduce crisis management.
Minimize project surprises.
Anticipate problems thereby making you proactive than reactive.
Increase likelihood of project success.
Enhance your company’s competitive position.
Become a better manager.
11.1 Plan Risk Management -> Why to plan?
11.1 I T&T O

• Match size &
importance of
Project
• High visibility -
Large Strategic
Project.
• Low visibility -
Small/Less
significant
projects.
Visibility
Define resources
required for Risk
Management.
Resources
Define
Documentation &
escalation
process.
Documentation
Define Risk
communication.
Communication
11.1 Plan Risk Management -> Degree of Risk management
Ensures the degree, type & visibility of risk manag’t
commensurate with risks & importance of project.
11.1 I T&T O

Inputs (5)
• PMP
• Project charter
• Stakeholder
register
• EEF
• OPA
Tools & Techniques(3)
• Analytical techniques
• Expert judgment
• Meetings
Outputs
• Risk
Management
Plan
11.1 Plan Risk Management->ITTO
11.1 I T&T O

PMP
Project
Charter
Stakeholder
register
EEF OPA
11.1 Plan Risk Management-> Input
11.1 I T&T O

Project
Management
Plan
All approved subsidiary plans & baselines.
PMP
All Baselines
Scope
Baseline
Cost Baseline
Schedule
baseline
Cost Manag.
Plan
Schedule
Manag. Plan
Communicati
on Manag.
plan
11.1 Plan Risk Management-> Input->PMP
11.1 I T&T O

Project Charter
11.1 Plan Risk Management-> Input->Project Charter
High Level inputs
Initial risks
Project Objective
Project Requirements
Project authorization document with high level details.
11.1 I T&T O

Stakeholder
Register
Provides stakeholder classification
Champion Supporter Resister
Helps to identify potential impact on Project
Power Roles Interest Resources
It provides critical information about project
stakeholders
11.1 Plan Risk Management->Input->Stakeholder Reg.
11.1 I T&T O

EEF
Risk Attitude:
Risk averse Risk Seeker Risk Neutral Risk tolerant
Risk Averse: Organization is not comfortable with
digesting risks. Not supportive towards risks.
Risk Seeker: organization likes to seek risks if they
see any opportunity. Young startup/dynamic
companies
Risk Neutral: Are neutral to risks. They deal with
risks objectively. Use EMV & decision tree analysis
to analyse risk.
Risk Tolerant: very comfortable with ignoring
risks. They don’t care and never pay any attention
to a risk until it becomes an issue.
11.1 Plan Risk Management-> Input->EEF

EEF
Risk Attitude will drive:
Risk Appetite Risk Tolerance Risk Threshold
Risk Appetite:
Degree of uncertainty an organization is willing to
take on in anticipation of a reward.
E.g., High, medium, low etc
Risk Tolerance:
Degree, amount, or volume of the risk that an
organization or individual will withstand. E.g., Allow
schedule slippage by 5–10% or cost slippage by 7–15%.
Risk threshold:
Amount of risk that an organisation is willing to
accept. is the limit beyond which your
organization will not tolerate the risk. E.g., For a
project cost overrun is allowed till 100,000.

Risk Appetite: Risk Tolerance: Risk threshold:
Qualitative Quantitative Quantitative
• Organization has high level of Risk appetite.
Risk
Appetite:
• You are bidding for a project. The estimated cost of this project is
approximately 1Million. You are in the process of applying for this bid,
however, your management constraints you by stating that you can not bid
more than 10% of this amount. This 10% is your tolerance limit.
Risk
Tolerance:
• You are bidding for a project. The estimated cost of this project is
approximately 1Million. You are in the process of applying for this bid,
however, your management constraints you by stating that you can go
beyond additional 100,000 of this amount. This 100,000 is your threshold.
Risk
threshold:

OPA
OPA related to Risks:
Risk Categories
Common Definitions & terms
Risk statement format
Templates
Roles & responsibilities
Decision making authority levels
Lesson learned
11.1 Plan Risk Management-> Input->OPA
11.1 I T&T O

Analytical
Technique
Expert
Judgment
Meetings
11.1 Plan Risk Management-> T&T
11.1 I T&T O

Expert
Judgment
Expertize should be considered from groups or individuals
with specialized knowledge in the area of Risk management.
Senior Management
Project
Stakeholders
PM with similar
project experience
Subject Matter
expert
Consultants
Professional &
technical associates
11.1 Plan Risk Management->T&T->Expert Judgement
11.1 I T&T O
Help PM to
setup risk
management
context
Analyses
organizations
risk attitude.

Analytical
Technique
Stakeholder Risk
Attitude
Strategic Risk
exposure of
project
Risk
Management
context
Strategic Risk scoring sheets
• Asses risk exposure of the projects
Engage & map issues, commitment & ownership.
These assessments helps proper resource allocation.
Understand & define the overall Risk
management context.
11.1 Plan Risk Management->T&T->Analytical Technique
11.1 I T&T O

Meetings
11.1 Plan Risk Management->T&T->Meetings
11.1 I T&T O
Anyone responsible for risk management will be
part of the meetings:
Project
Manager
Sponsor
Selected team
members
Selected
stakeholders
Define high level plans
for conducting risk
management.
Review Risk contingency
reserve & assign
responsibility.
Analyse templates,
categories & tailor it.

Risk
Management
Plan
11.1 Plan Risk Management->Output
11.1 I T&T O

Risk
Management
Plan
RMP includes following:
Methodology (How?)
Roles & Responsibilities (who?)
Budgeting (Cost of Risk management)
Timing (Schedule)
Risk Categories (RBS)
Probability & Impact
Stakeholder Tolerances
Reporting Format
Tracking (Follow-up)
11.1 Plan Risk Management->Output->Risk Management Plan
11.1 I T&T O

Risk
Management
Plan
RBS for IT project
Business
Business
process
Market
changes
Change in
management
Technical
Hardware
Software
Network
Project
Management
Estimation
Planning
Resource
Communicatio
n
11.1 Plan Risk Manag.->Output->Risk Management Plan
11.1 I T&T O

11.1 Plan Risk Management->Output->Risk Management Plan
11.1 I T&T O

11.1 Plan Risk Management-> Process Flow
11.1 I T&T O

11.1 Plan Risk Management-> Review
L : Lesson
How much efforts need to be spent on risk
management.
How risk management helps on project?
Risk Attitude(Risk averse, Risk Seeker, Risk Neutral & Risk
tolerant)
What Risk Management Plan contains?
The Risk Breakdown Structure
11.1 I T&T O

By: Anand Bobade (nmbobade@gmail.com) 11.1 I T&T O
• Learn visually

11.2 Identify Risks
Identify Risks - Definition
Who is involved in Risk identification?
Identify Risks : ITTO
What is Delphi technique?
What is Risk register?
Data flow diagram
Review
11.2 I T&T O

Introduction – Risk Management Processes
activities
11.2 Identify Risks
affect the project
& impact.
11.2 I T&T O

risks.
to reduce threats
11.6 Control Risk
11.2 I T&T O

Determine which risks may affect the project &
document their characteristics
Focuses on documentation of existing risks. It provides
Knowledge & ability to project team, to anticipate
events.
Project
Risk1
Risk2
Risk3
Risk4Risk5
Risk6
Risk7
Document
Risk
Charaterstics1
Charaterstics2
Charaterstics3
Determine Risks Documenting their characteristics
11.2 Identify Risk -> Definition
11.2 I T&T O

Risk Identification is an iterative process.
Consistent format should be used to ensure each risk is
understood clearly & unambiguously.
Ownership & Responsibility - Project team should be
involved in the process.
The more participants involved in the process will help to
identify more risks.
11.2 Identify Risk -> Introduction
11.2 I T&T O

Project Manager Project team
Risk Management
team
Customers & end
users
SME Project stakeholders
Industry
representatives
Consultants
Fellow Project
Managers
Risk Management
experts
Quality experts HR experts
11.2 Identify Risk -> Stakeholders involved
11.2 I T&T O

Inputs (13)
• Risk management plan
• Cost management plan
• Schedule management plan
• Quality management plan
• HR management plan
• Scope baseline
• Activity cost estimates
• Activity duration estimates
• Stakeholder register
• Project documents
• Procurement documents
• EEF
• OPA
Tools & Techniques(7)
• Documentation reviews
• Information gathering
techniques
• Checklist analysis
• Assumptions analysis
• Diagramming techniques
• SWOT analysis
• Expert judgment
Outputs
• Risk Register
11.2 Identify Risk ->ITTO
11.2 I T&T O

Risk Management
Plan
Scope Baseline
Schedule
Management Plan
Activity Duration
Estimates
Cost Management
Plan
Activity Cost
Estimates
HR Management
Plan
Quality
Management Plan
11.2 Identify Risk ->Inputs
11.2 I T&T O

Procurement
Documents
Stakeholder
register
Project
documents
EEF OPA
11.2 I T&T O

Roles & Responsibilities,
Budget & Schedule for Risk Management activities
Risk Categories / RBS.
Uncertainty in assumptions should be evaluated.
WBS – Potential risk at micro & macro level.
Risk–link to Summary, control account or work package
Time/schedule objectives & expectation which may be
impacted by Risk (Known or unknown)
Identify risk related to time allowances for the activities or
entire project.
11.2 I T&T O

Processes & controls used to help identify cost
related risk across the project.
Provides quantitative assessment of likely cost to
complete scheduled activities. Help to identify
projections are sufficient or not.
How Human resources should be defined, staffed,
managed & released. Roles Responsibilities,
Project Organization chart, staffing plan etc.
Baseline of quality measures & metrics.
11.2 I T&T O

Complexity & detailing should be consistent
with value of & Risk associated with
procurement
Key stakeholders are interviewed or
participated in the Risk identification meetings.
Project Charter, schedule, network diagram,
issue log, quality checklists etc
11.2 I T&T O

Commercial DB, academic studies, published checklists,
Benchmarking, Industry studies, Risk attitudes
Project files, templates, Risk statement format, Lessons
learned.
11.2 Identify Risk ->Inputs-> EEF & OPA
11.2 I T&T O

Documentation
Reviews
Information
gathering
Techniques
Checklist Analysis
Assumption
Analysis
Diagramming
Techniques
SWOT
Analysis
Expert Judgment
11.2 Identify Risk ->Tools & Techniques
11.2 I T&T O

Documentation
Reviews
Understand the content
of all relevant documents
Focus on Scope, cost, time
& quality
Question Assumption,
Constraints
Quality of doc -
completeness, consistency
11.2 Identify Risk ->T&T->Documentation Review
11.2 I T&T O

Information
gathering
Techniques Brainstorming Delphi Technique
Interviewing Root cause Analysis
11.2 Identify Risks->T&T->Information gathering Techniques
11.2 I T&T O

Information
gathering
Techniques
Brainstorming:
• One idea generates another:
Facilitator (Risk Management
expert) manages & assist the team.
RBS used as main framework to
guide discussions.
Goal is to creates list of Risks.
Involve Project team & other
experts.
It can be Free-form or can be mass
interview .
11.2 I T&T O

Information
gathering
Techniques
Delphi Technique:
• Help reduce bias in the collected risk data &
prevent influence each others.
• Expert participate anonymously.
• Facilitator use questionnaire.
• Consensus may be reached in a few rounds.
Prepare
Questionnaire
(Imp. Risks)
Expert
Responds
anonymously
Response
Summarized
Results are re-
circulated
Expert
comment
11.2 I T&T O

Information
gathering
Techniques
Interviewing:
• Interviewing experts, stakeholders,
experienced PM.
Root cause analysis:
• Reorganizing the identified risk by
their root cause may help identify
more risks.
11.2 I T&T O

Checklist
Analysis
Risk identification checklists.
Lowest level of RBS can be used as checklist.
Best if Developed based on prior projects.
It is impossible to build exhaustive checklist.
Over reliance over checklist should be avoided.
11.2 Identify Risks->T&T->Checklist Analysis
11.2 I T&T O

Assumption
Analysis
It explores the validity of assumptions as they applied
to the project.
All project assumptions should be verified.
Changes to assumptions or new assumptions should be
identified.
Focus on the assumptions that impacts multiple
project objectives.
11.2 Identify Risks->T&T->Assumption Analysis
11.2 I T&T O

Diagramming
Techniques Cause and effect diagrams
(fish-bone diagram)
System or process flow
charts.
Influence diagrams
11.2 Identify Risks->T&T->Diagramming Techniques
11.2 I T&T O

Diagramming
Techniques
Cause-and-Effect Diagram
• Also known as Fishbone or Ishikawa diagrams
• It help you find causes of the risks.
11.2 I T&T O

Diagramming
Techniques
System or process flow charts:
Shows how various elements of a system
interrelate.
11.2 I T&T O

Diagramming
Techniques
Influence diagrams:
• Shows casual influences among project
variables & timing of events.
• Shows relationships among other project
variables & their outcomes.
11.2 I T&T O

SWOT
Analysis
11.2 Identify Risks->T&T->SWOT Analysis
11.2 I T&T O
It is a simple but useful framework for analyzing
your organization's strengths & weaknesses, & the
opportunities and threats that you face.
It helps you focus on your strengths, minimize
threats, and take the greatest possible advantage
of opportunities available to you.

Expert
Judgment
Senior Management
Project
Stakeholders
PM with similar
project experience
Subject Matter
expert
Consultants
Professional &
11.2 Identify Risks->T&T->Expert Judgement
Help PM to do
SWOT analsysis
Use Delphi
technique to
identify risks.
11.2 I T&T O

11.2 Identify Risks->Output->Risk Register
Risk
Register
11.2 I T&T O

Risk
Register
Risk Register:
List of risk
List of initial POTENTIAL responses
Root causes of risks
Updated risk categories
The output is, initial entries into the risk register,
which includes:
# Risk Probabil
ity
Impact Urgenc
y
Category Risk
Level
Risk Response
1 Continually changing
requirements
Scope
2 Project involves the use
of new technology
Solution
11.2 I T&T O

Risk
Register
Risk Statement:
Source Condition Consequences
Context Risk Statement
If (event) occurs due to (driver), the consequences could
result in (impact).
Significant delays in retrieving records due to current tools
for data storage and retrieval practices may leave the
department unable to adequately respond to Access to
Information requests.
11.2 I T&T O

11.2 Identify Risks-> Process Flow
11.2 I T&T O

11.2 Identify Risks -> Review
Who is involved in Risk identification?
What is Delphi technique?
What is assumption analysis?
What is SWOT analysis.
What is Risk register?
What is risk statement.
11.2 I T&T O

• Learn visually

Perform Qualitative Risk Analysis - Definition
What is Qualitative & Quantitative Risk Analysis?
Why to do Qualitative Risk Analysis
Perform Qualitative Risk Analysis: ITTO
What is probability impact matrix?
What is Risk score?
Data flow diagram
Review
11.3 I T&T O

activities
11.2 Identify Risks
affect the project
& impact.
11.3 I T&T O

risks.
to reduce threats
11.6 Control Risk
11.3 I T&T O

It is a process of prioritizing risks for further analysis
by assessing & combining their probability of
occurrence & impact.
It enables PM to reduce the level of uncertainty and to
focus on high-priority risks
Identified Risks Qualitative Analysis Prioritized Risk
Prioritizing
Occurrence Impact.
11.3 Perform Qualitative Risk Analysis-> Definition
11.3 I T&T O

• Prioritize Risks as High,
Medium & Low.
• Based on relative
probability & likelihood of
occurrence.
Perform Qualitative Risk
Analysis
Identify the numerical values
in terms of cost, timeline for
each Risk.
Perform Quantitative Risk
Analysis
11.3 Perform Qualitative Risk Analysis-> Difference
11.3 I T&T O

Identify most important Risks.
Prioritize Risks.
Rapid & cost effective.
Help PM to focus resources & energy on priority Risks.
Decision to perform qualitative analysis depends on Risk
response timeframe.
11.3 Perform Qualitative Risk Analysis-> Why?
11.3 I T&T O

Inputs (5)
• Risk management
plan
• Scope baseline
• Risk register
• EEF
• OPA
Tools &
Techniques(6)
• Risk probability and
impact assessment
• Probability and
impact matrix
• Risk data quality
assessment
• Risk categorization
• Risk urgency
assessment
• Expert judgment
Outputs
• Project
document
updates
11.3 Perform Qualitative Risk Analysis->ITTO
11.3 I T&T O

Risk
Management
Plan
Scope
Baseline
Risk Register
EEF OPA
11.3 Perform Qualitative Risk Analysis->Inputs
11.3 I T&T O

Risk
Management
Plan
Key Elements of RMP
Roles & Responsibilities
Budget
Schedule Activities
Risk Category
Definition of Probability & Impact Matrix
Revised Stakeholder tolerances
11.3 Perform Qualitative Risk Analysis->Inputs->RMP
11.3 I T&T O

Scope
Baseline
Examining scope baseline helps to evaluate risks
Highly complex projects (State of the art technology or
first of its kind) tend to have more uncertainty.
Review scope related assumptions & dependencies.
11.3 Perform Qualitative RA->Inputs->Scope Baseline
11.3 I T&T O

Risk Register
Contains information that will be used to assess &
prioritize the Risks.
List of Identified Risk.
Description (Source, Category, impact etc)
Initial risk response. (If available)
11.3 Perform Qualitative RA->Inputs->Risk Register
11.3 I T&T O
# Risk Probabil
ity
Impact Urgenc
y
Category Risk
Level
Risk Response
requirements
Scope
of new technology
Solution

EEF
Industry studies
Risk Databases
OPA
Information about prior similar completed
projects.
11.3 Perform Qualitative Risk Analysis->Inputs
11.3 I T&T O

Risk Probability &
Impact Assessment
Probability and
Impact Matrix
Risk Data Quality
Assessment
Risk
Categorization
Risk urgency
Assessment
Expert
Judgment
11.3 Perform Qualitative Risk Analysis->T&T
11.3 I T&T O

Risk Probability
& Impact
Assessment
• Likelihood of each Risk
Risk
Probability
assessment
• Potential effect on project
objectives (Schedule, Cost,
Quality & Performance)
Risk impact
Assessment
11.3 Perform Qualitative RA->T&T->Risk Probability & IA
11.3 I T&T O

Risk Probability
& Impact
Assessment
Probability & Impact are assessed for individual Risk
Discuss with Project team, Customer, Sponsor, Expert -
Interview/ Meetings
Find Experience Risk Manager - Facilitator
Ratings are done according to definition in RMP.
Underlying rational for rating is included.
0 1 2 3 4 5
Probability & Impact Scale
11.3 I T&T O

Risk Probability
& Impact
Assessment
Risk Prioritization
# Risk Probability Impact
requirements
3 4
of new technology
2 3
3 Inexperience team
members
2 4
4 Unstable organizational
environment
1 5
5 Product gets High
Market response
4 5
11.3 I T&T O

Probability &
Impact Matrix
Specifics combination of Probability & Impact that
leads to rating the Risk as High, Moderate or Low.
Separate Matrix (Cost, Scope, Schedule & Quality)
Depends on How Risk need to be weighted
Opportunities & threats can be handled in same
Matrix
We can quickly see priority of risks & determine
response
11.3 Perform Qualitative RA->T&T->Prob. & Impact Matrix
11.3 I T&T O

Probability
5
4
3
2
1
0 1 2 3 4 5
Impact
Probability &
Impact Matrix
Probability & Impact matrix
Risk Level
Low
Moderate
High
1
2
# Category Risk Description Prob. Impact Risk Level
1 Cost Changing Approval requirement will cost
more & delay project
5 5 High
2 Quality Reducing Quality check will impact
deliverable quality
4 3 Moderate
11.3 I T&T O

Probability &
Impact Matrix
Probability & Impact matrix
• Helps guide Risk response.Risk Score
11.3 I T&T O

Risk Data
Quality
Assessment
Evaluate the degree to which the data is useful to
Risk Management
Examine the accuracy, Quality, reliability & Integrity
of Risk Data
If the Risk data quality is poor, additional data need
to be collected
Risk related data collection can consume more time
& resources
11.3 Perform Qualitative RA->T&T->Risk Data Quality Asses.
11.3 I T&T O

Risk
Categorization
Risk can be categorized by source/Root cause etc
Useful in developing Risk Response
Categorized by Source-RBS, Area of Project – WBS or
by Project Phase
# Risk Category No.
1 Quality 10
2 Scope 20
3 Schedule 30
11.3 Perform Qualitative RA->T&T->Risk Categorization
11.3 I T&T O

Risk urgency
Assessment
Nearing risks will need immediate response
In some cases Risk urgency is combined with Risk Ranking
to give final severity rating
Priority Indicators
Probability of detecting Risk
Response Time
Symptoms & warning signs
Risk Rating
11.3 Perform Qualitative RA->T&T->Risk urgency Assessment
11.3 I T&T O

Expert
Judgment
Senior Management
Project
Stakeholders
PM with similar
project experience
Subject Matter
expert
Consultants
Professional &
11.3 Perform Qualitative RA->T&T-> Expert Judgement
Provide inputs
on probability &
impact of risks
Help PM in risk
prioritization
11.3 I T&T O

Project
Document
Update
11.3 Perform Qualitative RA->Output
11.3 I T&T O

Project
Document
Update
Risk Register Assumption Log
Risk Register Updates
Relative ranking or priority list of project risks
Risks grouped by categories
Causes of risk or project areas requiring particular attention
List of risks requiring response in the near-term
List of risks for additional analysis and response
Watch lists of low-priority risks
Trends in qualitative risk analysis results
11.3 Perform Qualitative RA->Output->Project Doc. Update
11.3 I T&T O

Project
Document
Update
Risk Register Assumption Log
11.3 Perform Qualitative RA->Output->Project Doc. Update
11.3 I T&T O
# Risk Probability Imp
act
Urgenc
y
Category Risk
Level
Risk Response
requirements
3 4 Low Scope High
of new technology
2 3 Normal Solution Medium
3 Inexperience team
members
2 4 Immedi
ate
Resource Medium
4 Unstable organizational
environment
1 5 Immedi
ate
EEF Medium

11.2 Perform Qualitative RA-> Process Flow
11.3 I T&T O

11.2 Perform Qualitative RA-> Review
What is Qualitative & Quantitative Risk
Analysis?
Why to do Qualitative Risk Analysis
What is probability impact matrix?
What is Risk score?
11.1 I T&T O

• Learn visually

Pmp chap 11 - project risk management v0.1

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Pmp chap 11 - project risk management v0.1