Chap 11.2 Identify Risks

By: Anand Bobade (nmbobade@gmail.com)
Chapter 11 –
Project Risk Management
PMP
Trainer: Anand BobadePMBOK 6th Edition, 2019, All rights reserved.
Identify Risk
SIXTH EDITION

PMBOK 6 - All rights reserved; By: Anand Bobade (nmbobade@gmail.com)
11.2 Identify Risks
Identify Risks - Definition
Who is involved in Risk identification?
Identify Risks : ITTO
What is Delphi technique?
What is Risk register?
Review

Project Risk Management Processes
Plan Risk
management
Identify Risk
Perform Qualitative
Risk Analysis
Perform Quantitative
Risk Analysis
Plan Risk Response Implement Risk Monitor Risk
P
MC
P P P
P E

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
Identify Risk -> Definition
Determine Risks Documenting their characteristics
Document
Risk
Charaterstics1
Charaterstics2
Charaterstics3

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.
Identify Risk -> Introduction

Project
Manager /
Project team
Risk
Management
Experts
Customers &
end users
SME /
Consultants
Project
stakeholders
Industry
representatives
Quality/ HR
experts
Identify Risk -> Stakeholders involved

Identify Risk ->ITTO
Expert Judgment
Data Gathering
Data analysis
Interpersonal and team skills
Prompt lists
Meetings
Project Management Plan
Project documents
Agreements
Procurement Documents
Enterprise environmental factors
Organizational process assets
Risk Register
Risk Report
Project document updates
Inputs Tools & Techniques Outputs

Project Management
Plan
Project documents Agreements
Procurement
Documents
Enterprise
environmental factors
Organizational process
assets
Identify Risk ->Inputs

Project
Management Plan
Requirements
Manag. Plan
Schedule
Manag. plan
Cost Manag.
Plan
Quality Manag.
Plan
Resource
Manag. Plan
Risk Manag.
Plan
Identify Risk ->Inputs -> PMP
Scope baseline
Schedule
baseline
Cost baseline
Baselines

Project documents Assumption log
Lessons learned
register
Requirements
documentation
Risk Register
Stakeholder
Register
Issue log
Cost estimates Duration Estimates
Identify Risk ->Inputs -> Project documents

Expert Judgment Data Gathering Data Analysis Prompt lists
Meeting
Interpersonal &
team skills
Identify Risk ->Tools & Techniques

Data Gathering Checklist Brainstorming Interviews
Identify Risk ->T&T-> Data Gathering

Data Gathering Checklist
Identify Risk ->T&T-> Data Gathering
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.

Data Analysis
Root cause
analysis
Assumptions &
Constraints
analysis
SWOT analysis
Document
analysis
Identify Risk ->T&T -> Data Analysis

Data Analysis
SWOT analysis
• It is a framework for analyzing organization's strengths &
weaknesses, & the opportunities and threats that you face.

Data Analysis
Assumptions & Constraints 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.
Document analysis:
•Understand the content of all relevant
documents
•Focus on Scope, cost, time & quality
•Question Assumption, Constraints
•Quality of doc - completeness, consistency

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
Identify Risks->T&T->Expert Judgement
Help PM to do
SWOT analysis
Use Delphi
technique to
identify risks.

Prompt lists
Prompt lists are predetermined list of categories.
The lowest level of RBS is used as prompt list.
strategic frameworks to identifying overall project risks - PESTLE, TECOP, VUCA
Identify Risks->T&T-> Prompt lists
Complexity
Multiple key decision
factors
Volatility
Rate of change
Ambiguity
Lack of clarity about
meaning of an event
Uncertainty
Unclear about the
present
VUCA
Howwellcanyoupredictthe
outcomeofyouractions?
How much do you know about the situation?
+
+- -

Prompt lists
Identify Risks->T&T-> Prompt lists
PESTLE
Political Economic Social Technological Legal Environmental.
TECOP
Technical Economical Commercial Organizational Political.

Risk Register Risk Report Project doc. updates
Identify Risks->Output->Risk Register

Risk Register
The output is, initial entries into the risk register, which includes:
Risk Register:
List of risk
List of initial
POTENTIAL
responses
Potential risk
owners
Root causes of risks
Updated risk
categories
Impact
I
D
Risk Statement Probability Scope Quality Schedule Cost Potential Response
Potential
Owner
1
Project owner on the client
side is replaced.
Low Medium Orient new project owner.
Project
Manager
2
Senior programmer is taken
from the project.
Medium High High
Find replacement
programmer.
Project
Manager
3
External system A is not ready
in time to implement feature
B.
High Low Medium Low
Discuss with stakeholders and
make adjustments as agreed.
Project
Manager

Risk
Register
Risk Statement:
Context Risk Statement
Source Condition Consequences
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.

Project doc. updates Assumption log Issue log
Lessons learned
register
Identify Risks->Output-> Project doc. updates

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.
Identify Risks -> Review

By: Anand Bobade (nmbobade@gmail.com)

Chap 11.2 Identify Risks

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Chap 11.2 Identify Risks