Plan risk management

Plan risk management

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  WELCOMEPMP Preparation Course[PMBOK V.6] Plan Risk Management Sherif Sabri, PMP® With Sherif Sabri, PMP®
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   Overview Plan RiskManagement  Plan Risk Management - Inputs  Plan Risk Management - Tools & Techniques  Plan Risk Management - Outputs Sherif Sabri, PMP®
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  OVERVIEW Risk Process No. (1) Planning ProcessNo. (18) performed ONCE or at predefined points in the project.
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  The process ofdefining how to conduct risk management activities for a project The key benefit of this process is that - It ensures that the degree, type, and visibility of risk management are proportionate to both risks and the importance of the project to the organization and other stakeholders. PLAN RISK MANAGEMENT Inputs Tools & Techniques Outputs .1 Project charter .2 Project management plan • All components .3 Project documents • Stakeholder register .4 EEF .5 OPA .1 Expert judgment .2 Data analysis • Stakeholder analysis .3 Meetings 1-Risk management plan OVERVIEW
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   documents thehigh-level project description and boundaries, high-level requirements, and risks. 2-PROJECT MANAGEMENT PLAN  All approved subsidiary management plans should be taken into consideration in order to make the risk management plan consistent with them. 1-PROJECT CHARTER 3-PROJECT DOCUMENTS  The stakeholder register: contains details of the project’s stakeholders and provides an overview of their project roles and their attitude toward risk on this project. Plan Risk Management - Inputs
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  4- EEF  overallrisk thresholds set by the organization or key stakeholders 5- OPA  Organizational risk policy;  Risk categories, possibly organized into a risk breakdown structure;  Common definitions of risk concepts and terms;  Risk statement formats;  Templates for the risk management plan, risk register, and risk report;  Roles and responsibilities;  Authority levels for decision making; and  Lessons learned repository from previous similar projects. Plan Risk Management - Inputs
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  1-EXPERT JUDGMENT For thisprocess, expertise should be considered from individuals or groups with specialized knowledge of or training in the following topics:  Familiarity with the organization’s approach to managing risk, including enterprise risk management where this is performed;  Tailoring risk management to the specific needs of a project;  Types of risk that are likely to be encountered on projects in the same area. Plan Risk Management - Tools & Techniques
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  2-DATA ANALYSIS  stakeholderanalysis: to determine the risk appetite of project stakeholders. 3-MEETINGS Attendees may include the project manager, selected project team members, key stakeholders, or team members who are responsible to manage the risk management process on the project. Others outside the organization may also be invited, as needed, including customers, sellers, and regulators. Plan Risk Management - Tools & Techniques
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  1-Risk MANAGEMENT PLAN isa component of the project management plan that describes how risk management activities will be structured and performed. 1) Risk strategy: Describes the general approach to managing risk on this project. 2) Methodology: Defines the specific approaches, tools, and data sources that will be used to perform risk management on the project. 3) Roles and responsibilities: Defines the lead, support, and risk management team members for each type of activity described in the risk management plan, and clarifies their responsibilities. 4) Funding: Identifies the funds needed to perform activities related to Project Risk Management. Establishes protocols for the application of contingency and management reserves. 5) Timing: Defines when and how often the Project Risk Management processes will be performed throughout the project life cycle, and establishes risk management activities for inclusion into the project schedule. 6) Risk categories: Provide a means for grouping individual project risks.  A common way to structure risk categories is with:  A risk breakdown structure (RBS), which is a hierarchical representation of potential sources of risk  RBS Importance o Helps the project team consider the full range of sources from which individual project risks may arise. o This can be useful when identifying risks or when categorizing identified risks.  Risk categorization framework o If RBS is not used, an organization may use a custom risk categorization framework, which may take the form of a simple list of categories or a structure based on project objectives. Risk management plan include: Plan Risk Management - Outputs
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  1-Risk MANAGEMENT PLAN RiskBreakdown Structure (RBS)  Risk categories: Plan Risk Management - Outputs
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  1-Risk MANAGEMENT PLAN 7)Stakeholder risk appetite: It should be expressed as measurable risk thresholds around each project objective. These thresholds will determine the acceptable level of overall project risk exposure, and they are also used to inform the definitions of probability and impacts to be used when assessing and prioritizing individual project risks. 8) Definitions of risk probability and impacts: Definitions of risk probability and impact levels are specific to the project context and reflect the risk appetite and thresholds of the organization and key stakeholders Risk management plan include: Definitions for Probability and Impacts Plan Risk Management - Outputs
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  1-Risk MANAGEMENT PLAN 9)Probability and impact matrix:  Prioritization rules may be specified by the organization in advance of the project and be included in organizational process assets, or they may be tailored to the specific project.  Opportunities and threats are represented in a common probability and impact matrix using positive definitions of impact for opportunities and negative impact definitions for threats.  Descriptive terms (such as very high, high, medium, low, and very low) or numeric values can be used for probability and impact. Risk management plan include: Probability and Impact Matrix with Scoring Scheme Plan Risk Management - Outputs
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  1-Risk MANAGEMENT PLAN 10)Reporting formats:  Define how the outcomes of the Project Risk Management process will be documented, analyzed, and communicated.  Describes the content and format of the risk register and the risk report, as well as any other required outputs from the Project Risk Management processes. 11) Tracking:  Tracking documents how risk activities will be recorded and how risk management processes will be audited. Risk management plan include: Plan Risk Management - Outputs
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  T H AN K S F O R W A T C H I N G Together We will get it done Sherif Sabri, PMP®