PMP, Introduction to Project Risk Management

Process Group PMBOK Knowledge Area Process Why? (inputs) How? (tools and techniques) What? (outputs)
　 　 　 　 　 　
Planning 11.1 Risk Management Planning
  • Project Charter
  • Stakeholder Risk Tolerances
  • Work Breakdown Structure (WBS)
  • Planning meetings
  • Risk Management Plan
Planning 11.2 Risk Identification
  • Risk Management Plan
  • Risk Categories
  • Checklists...
  • Risks
Planning 11.3 quaLitative Risk Analysis
  • Identified risks
  • Scales of probability and impact
  • Probability/impact risk rating matrix
  • List of prioritized risks
Planning 11.4 quaNtitative Risk Analysis
  • List of risks for additional analysis and management
  • Decision tree analysis
  • Probability of achieving the cost and time objectives
Planning 11.5 Risk Response Planning
  • Risk owners
  • 　
  • 　
  • 　
  • Avoidance
  • Transference
  • Mitigation
  • Acceptance
  • Risk Response Plan
  • Secondary risks
Controlling 11.6 Risk Monitoring and Control
  • Risk response plan
  • Project communication
  • Earned value analysis
  • 　
  • 　
  • Workaround plans
  • Corrective action
  • Project change requests
  • Updates to risk identification checklists

　

 

10.                 Retention = Assume

 

11.                 Deflect = Transfer

 

12.                 Risk¨s 3 factors = probability, impact, and the event itself.

 

13.                 BCR(benefit cost ration) = NPV of revenue divided by NPV of cost ´ if = to 1 or more, do the project.

 

14.                 Risk management = identify, analyze, and respond to risk factors and document.

 

15.                 Risk Event Status = probability of occurrence + severity of consequence.

 

16.                 Response planning = mitigation deflection, and contingency planning.

 

17.                 Method of reducing risk is to hold functional managers accountable for time/cost estimates.  Hire and expert to product better estimates of the future costs.  Perform statistical analysis to improve quality of forecasts.

 

18.                 A project manager¨s objective when sub-contracting is to shift as much of the risk possible to the sub while maintaining some degree of incentive for improving efficiency and economic performance.

 

19.                 When entering a contract whit a buyer, a project manager should try to shift as much of the risk tot he buyer as possible.

 

20.                 During what phase is the risk the highest? Conceptual

 

21.                 During what phase is the amount at stake the highest? Termination

 

22.                 Uncertainty = the complete absence of information.

 

23.                 Certainty = all information for making the right decision is available.

 

24.                 Know how to calculate a decision tree¨s cumulative probability.

 

25.                 PV = amount of payment in N years divided by (1 + interest)n

 

26.                 IRR = that rate of discount at which the sum of the positive present values is equal to the sum of the negative present values.   OR cost equal revenue and project is a break even.