Life and Spiritual Coaching

June 7, 2008

PMP Notes for Risk Management

Filed under: PMP — by Donna Ritter @ 12:19 pm
  • Risk – uncertainty; good or bad
  • Project risk meetings should be an agenda item at each status team meeting
  • Risk Management – strategically fit; progressively monitored and controlled
  • Risks grouped, sorted and treated by experts
  • Risk management plan does to address responses to individual risks;
  • There is a separate Risk response plan for each risk
  • Risk identification – inputs from all areas; iterative
  • Risks evaluated and responses written and followed when needed
  • Brainstorming – most popular technique for identifying risk
  • Delphi technique – anonymous; facilitator required to analyze and categorize risks
  • The nominal group technique – participants self nominate and then have open discussion/clarification
  • Crawford slip – 10 times 10 different answers, less interactions
  • Checklist – quick and simple; danger of inconclusive and prejudgement
  • List of identified risks – progressively adjusted throughout project life cycle
  • Risk categories; technical, performance, management, organizational, external
  • Risk tolerance- willingness to accept risk; risk thresholds help to measure effectiveness of plan
  • Severity of risk – impact and probability; ranking; only to events
  • Risk scale – ordinal (L,M,H) or cardinal
  • Documenting the rationale of risk ranges is important component of risk interview
  • Data precision ranking – data about risk useful? Risk understanding, component of risk interview
  • Affinity diagramming – separate risks into groups treated by experts
  • Risk Response – avoidance, transfer (deflect), mitigation and acceptance take
  • Risk register – risk response plan – residual v. secondary risks
  • Risk avoidance – plan change; totally avoid by doing something; eliminate root cause; most preferable
  • Insurance and contracting are the methods of transferring (deflecting) risk. Splitting order is a method of risk mitigation.
  • Risk acceptance – setting up the risk tolerance first; within limit
  • Passive acceptance – do nothing, work around
  • Active acceptance – contingency plan, fullback plan, proactive, start early
  • Contingency planning is defining the steps to be taken if an identified risk event occurs
  • Risk mitigation – reduce the probability or impact; level to accept; change the conditions; planning for what to do in case the risk materializes – probability and impact; specific tasks dome regardless of whether a risk occurs
  • Risk taxonomy – identify risks, assess their probability and impact and understand the effectiveness of a particular mitigation strategy on a specific risk
  • Known risks- contingency budget or reserve set aside and approved by the project manager, reduced proportionally toward the end of the project
  • Unknown risks – management reserve
  • When a risk is identified, budget and schedule time are identified and put into the contingency reserve and added to the operating budget of the project
  • Corrective action – itself the output of all the controlling process; performing the workaround or the contingency plan in cost and risk control; performing expediting in schedule control
  • When the influence of standards and regulations is unknown or uncertain, they must be considered under Project Risk Management.

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