BSBPMG415 Learner Workbook V1.4 2

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BSBPMG415
Apply project risk
management techniques
Learner Workbook
BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

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Table of Contents
Table of Contents 2
Candidate Details 2
Assessment – BSBPMG415: Apply project risk management techniques 3
Competency Record to be completed by Assessor 4
Activity 1A 6
Activity 1B 8
Activity 1C 9
Activity 2A 10
Activity 2B 13
Activity 2C 14
Activity 2D 16
Activity 2E 18
Activity 2F 20
Activity 2G 22
Activity 3A 23
Activity 3B 25

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Candidate Details
Assessment – BSBPMG415: Apply project risk management techniques
Please complete the following activities and hand in to your trainer for marking. This forms part of
your assessment for BSBPMG415: Apply project risk management techniques.
Name: Byambadorj Delgersaikhan
Address: 15 Allen street Waterloo NSW 2017
Email: byamba12.d@gmail.com
Declaration
I declare that no part of this assessment has been copied from another person’s work with the
exception of where I have listed or referenced documents or work and that no part of this
assessment has been written for me by another person.
Signed: ____________________________________________________________
Date: ____________________________________________________________
If activities have been completed as part of a small group or in pairs, details of the learners
involved should be provided below:
This activity workbook has been completed by the following persons and we acknowledge that it was
a fair team effort where everyone contributed equally to the work completed. We declare that no
part of this assessment has been copied from another person’s work with the exception of where we
have listed or referenced documents or work and that no part of this assessment has been written
for us by another person.
Learner 1: ____________________________________________________________
Signed: ____________________________________________________________
Learner 2: ____________________________________________________________
Signed: ____________________________________________________________
Learner 3: ____________________________________________________________
Signed: ____________________________________________________________

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Competency Record to be completed by Assessor

Learner Name: _______________________________________________________
Date of Assessment: _______________________________________________________
The learner has been assessed as competent in the elements and performance criteria and the
evidence has been presented as:
Assessor Initials
Authentic
Valid
Reliable
Current
Sufficient
Learner is deemed: COMPETENT NOT YET COMPETENT (Please circle)
If not yet competent, date for re-assessment: ____________________________________
Comments from Trainer / Assessor:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Assessor Signature: ________________________________________________________

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Observation/Demonstration
Throughout this unit, you will be expected to show your competency of the elements through
observations or demonstrations. Your instructor will have a list of demonstrations you must complete
or tasks to be observed. The observations and demonstrations will be completed as well as the
activities found in this workbook. An explanation of demonstrations and observations:
Demonstration is off-the-job
A demonstration will require:
➢ Performing a skill or task that is asked of you
➢ Undertaking a simulation exercise
Observation is on-the-job
The observation will usually require:
➢ Performing a work based skill or task
➢ Interaction with colleagues and/or customers
Your instructor will inform you of which one of the above they would like you to do. The
demonstration/observation will cover one of the unit’s elements.
The observation/demonstration will take place either in the workplace or the training
environment, depending on the task to be undertaken and whether it is an
observation or demonstration. Your instructor will ensure you are provided with the
correct equipment and/or materials to complete the task. They will also inform you
of how long you have to complete the task.

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You should be able to demonstrate you can:
➢ Assist with risk analysis and planning
➢ Perform risk-control activities
➢ Contribute to assessing risk management outcomes
You should also demonstrate the following skills:
➢ Reading
➢ Writing
➢ Oral communication
➢ Navigate the world of work
➢ Interact with others
➢ Get the work done
Activities
Activity 1A
Estimated Time 40 Minutes

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Objective
To provide you with an opportunity to contribute to identifying and prioritising

potential risks throughout the project life cycle, using established risk-analysis
methods, techniques and tools.
Activity
Outline the following, noting their uses:
➢ Risk categorisation
Risk categorisation sorts types of risks into specified categories, so they

can be reported and dealt with accordingly, according to protocols for a
certain risk category. In other words, it provides a frame of reference for
which individual risk instances can be put into different groups and more
easily dealt with. The normal way to organise identified risks is using the
Risk Breakdown Structure (RBS) – this allows you to see which areas of a
particular project pose the most risk. Some of the risk categories include:
communications, compliance, consultative, environmental, finance etc.
➢ Risk data quality assessment
This is to ensure that the information we use for the risk analysis is

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objective and credible in order to give us an accurate result. Importance is

to consider the following aspects of the data:
 Accuracy
 Quality
 Integrity
 Reliability
➢ Risk likelihood and consequence ranking
 Risk likelihood refers to the chance of something happening- the

likelihood of a risk can be determined through qualitative or
quantitative risk analysis. For example: schedule simulation,
decision analysis, contingency planning, alternative strategy
development.
 Consequence ranking is to do with the impact a particular risk will
have on project- it is measured in terms of severity. Severity of
consequence could be rated on a scale, from catastrophic to
negligible.
➢ Risk urgency assessment.

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Risks must be dealt with in terms of immediacy – those which may

materialise in the immediate future must be dealt with first. The
information to from risk urgency analysis can be combined with risk
ranking from a probability and impact matrix to create a final risk severity
rating.
Activity 1B
Objective
To provide you with an opportunity to contribute to developing risk

management strategies and risk management plans according to established
guidelines.
Activity
Explain the following risk management strategies:
➢ Acceptance

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The acceptance strategy is used when the risk is unavoidable, and the risk
level is low. By this can adjust to accommodate the risk without too much
effort or cost. However, it still requires planning in order to estimate when
risks will occur.
➢ Avoidance
For the strategy, fist, you must identify the risk. You can use experience
and previous data to determine how to avoid a risk. Then you analyse the
risks that are most likely to occur before beginning the project and then
set a path to avoid them from the outset. The risks you choose to avoid
will be made depending on the impact of the risks, relative to the
achievement of your objectives.
➢ Mitigation
This is when a risk is stopped before it makes an impact and controls it at

an acceptable level. It is usually part of a contingency plan.
➢ Transfer

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This had the effect of lessening the impact of a risk, or even completely
remove it. The risk transferred over to third party- this can be via a
contract, insurance or leasing. This has the effect of meaning the project
does not bear the full burden of any negative consequences, should they
occur.
You have been tasked with creating a risk management plan for an upcoming
project. What are the stages of the plan you will need to execute?
 Define you project- Defining project goals and considering risk and
impacts of them
 Brainstorm- By gathering all people involved in the project gather ideas
about what could happen, prevention measures and contingencies.
 Risk consequences- Linking specific consequences to individual risk- the
consequences need to be as detailed as possible.
 Eliminate negligible/ uncontrollable risks- There are some risks that will
have so little impact on your project that you needn't plan against them,
as the cost-benefit ratio won't add up. There are other risks that, while
potentially catastrophic, are out of your hands – think in terms of nuclear
wars or a plague. Nothing you can do will lessen their impact, even though
they could be devastating, so don't waste time worrying about them.
 List risk and assign probability of occurrence for each one - this will help to
prioritise risks which are most likely to occur
 Determine impact of risks- The need to decide the severity of the impact
of each risk, should it occur- these are generally classed as high, medium
and low
 Rank the risks- This will allow you to determine which risks to tackle first
i.e. though with high probability and impact combinations and see which
risks are not worth the time and money to eradicate.

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 Calculate total risk- Using the ranking risks can be translated into
numbers.
 Create mitigation strategies- This is done for the medium and high risks to
reduce the probability that they will occur.
 Create contingency plans- These reduce the impact of a risk does
materialise – again, this is done mostly for high and medium risks.
 Reanalyse the risks – After risk management strategies in place need to
analyse the risk and its plan.
 Monitor the risks- As you proceed through your project, you will need to
keep track of risks and determine whether they ever become an issue and
whether contingencies need to be activated. This is done by identifying
risk cues for all of your high and medium risk elements.
Activity 1C
Objective
To provide you with an opportunity to contribute to developing and

implementing risk-reporting mechanisms.
Activity
Imagine you are part of a project to manufacture an updated model of your

company's flagship MP3 player.

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However, you discover that a vital chip essential for the manufacture of the
product will be delivered 4 weeks later than planned.
Complete risk log for the project, taking this into consideration.
Ris Impact on Impact on

Risk Risk ranking
k ID budget schedule
MR Late from Medium By increasing the Getting behind

001 scheduled time duration of the of schedule
project, budget
could be over
used.
MR Product High Budget could be Manufacturing

002 deliveries late over used due to will be late for 4
waiting time weeks. Missing
the deadlines.
Risk description
These is a risk that project could not be completed in scheduled timeframe
because of delivery product. Originally the delivery products should be
delivered in 2-3 business days. But the delivery company is in unforeseen
trouble. Thus, is delayed.
Risk status (current/closed; location)

Current
Areas affected
Affected areas will be project timeline, goal of the project.

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Causes of risk
Unforeseen trouble of delivery company
Not checking throughout for the delivery time
Activity 2A
Objective
To provide you with an opportunity to monitor risks according to agreed project

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and risk management plans and advise project manager of changing

circumstances.
Activity
Outline the following:
➢ Recommended corrective actions- These aim to alter a situation once a

risk has manifested, in order to mitigate or remove it. These are identified
in a contingency plan; they may also be part of a workaround (an
unplanned response to a risk)
➢ Recommended preventative actions- These are the actions that aim to
prevent a risk from manifesting in the first place.
➢ Requested changes- When actioning contingency plans, you may need to
change the project plan overall. This involves issuing a change request.
➢ Reserve analysis – This compares the available reserves to the amount if
risk remaining at the time, to determine whether there are sufficient
resources to complete the project.
➢ Risk audits - These examine and document the effectiveness of risk
responses, with regards to controlling them and the effectiveness of
current measures.
➢ Risk reassessment – Risks are not necessarily a static entity, they change
all the time. Risk reassessment should occur at all team meetings and
major milestone of the project- if necessary, further qualitative and
quantitative risk analysis may be required.
➢ Risk register and updates – The risk register should be regularly updated
to include outcomes of: Risk reassessments, audits, risk reviews,
outcomes of risks and risk responses. These updated can be used to
change risk probability, ranking, impact and responses for current and
future projects.
➢ Status meetings - If risk management is addressed regularly in team
meetings, any issues can be identified and dealt with early on.

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➢ Technical performance information- If risk management is addressed

regularly in team meetings, any issues can be identified and dealt with
early on.
➢ Variance and trend analysis.- If risk management is addressed regularly in
team meetings, any issues can be identified and dealt with early on. If
there is a significant deviation from the expected trend, risk analysis and
identification should be redone.

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Activity 2B
Objective
To provide you with an opportunity to regularly review current and proposed

activities to identify potential and actual risks and opportunities.
Activity
Think of a project you have been involved with and list the risks and potential
consequences in the table below:
Risk Consequence if not dealt with
Team meeting not frequent Identified problems are not discussed and
shared on a regular basis and dealt with early
on.
No risk mitigation plan The project members will not act according to
organisational procedure

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Project team unidentified risks The project team will not act according to
and potential problems organisational procedure.
Risk issue lists not accessible Team will not be able to identify risk and take
actions to mitigate them.
Documentation limited Not being able to know if the risk is current,

past or potential

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Activity 2C
Objective
To provide you with an opportunity to contribute to implementing agreed risk

management approaches and amending plans to reflect the changing
environment.
Activity
What is enterprise risk management?
Enterprise risk management is when you plan, organise, lead and control an
organisation’s activities, in order to limit the effect of risk on capital and profit. The
types are: Financial, Strategic, Operational, Accidental loss. ERM provides a
structured approach to risk management and involves everyone involved in a
project. This means that risk management can remain constant when people
switch roles and people leave the organisation, as those remaining are aware of
the required strategy.
ERM creates a risk framework, reporting process and risk tolerance levels,
basically integrating it into all other procedures, so people do it automatically
rather than think of it as a separate entity. You will need a risk management
system in place that gives ownership of risk to multiple personnel – they are
responsible for managing their own area and reporting findings to management or
a risk committee, to identify those serious issues that need to be dealt with.
Outline the measures of likelihood and consequence used in risk quantification.
Measures of likelihood

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 Rare- will only occur in the rarest circumstance

 Unlikely- Could occur at some point
 Possible- Might occur at some point
 Likely- Will usually occur
 Almost certain- Will nearly always occur
Measures of consequence
 Insignificant- Low financial loss/no injuries

 Minor- Medium financial loss/ immediately contained
 Moderate- High Financial loss/ medical treatment/ contained using third
party assistance.
 Major- Major financial loss/ widespread injuries/ off-site release and
containment/ loss of productivity
 Catastrophic- Huge financial loss/death/toxic release with huge detriment
to business and environment.
Activity 2D

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Objective
To provide you with an opportunity to contribute to corrective action on risks

according to risk management plan and delegated authority.
Activity
What may be the causes of risks in a project?
 Human error
 Equipment malfunction
 Lack of communication
 Organisational errors
When coming up with a solution for corrective action, what things do you need
to consider?
 How to implement solution

 Who is responsible for it
 Which solution are most viable
 Risk associated with solutions
 Changes to the risk management plan needed
 Planning processes

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Activity 2E
Objective
To provide you with an opportunity to contribute to review of contingency plans

on an ongoing basis and, where required, ensure tasks allocated to individuals
and/or team are clarified with the project manager before implementation.
Activity
What factors need to considered when reviewing a contingency plan?
 Trigger factors/actions for a contingency

 What areas of the risk management plan require review/change
 What resources are available for contingency plans
 The procedures for carrying out the contingency plans
 The time span of the contingency
 The effect on the project during the contingency
 Who is responsible for the contingency.

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Create a brief outline of a risk contingency plan for an upcoming project in your
company.
Possible risks Actions to be undertaken

Bad weather conditions for Reschedule to later date. If possible
construction move some equipment inside and
build some of the playground parts
Workers become ill or unavailable Look at drafting of backup workers
and ask them to work
Equipment damage Look for the reason and change if have
warranty.
Resource deliveries getting late Reschedule needed actions and do
works that does not involve those
resources

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Activity 2F
Estimated Time Minutes
Objective
To provide you with an opportunity to apply and monitor risk-contingency

measures according to risk management plan.
Activity
What do you need to be aware of, with regards to the following:
➢ Time periods
What kind of activities needs to be completed by the certain deadline?
➢ Triggers
What will be the cause of activating contingency plan?

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➢ The outline of the plan
Who is responsible for what? What are the specific instructions?
➢ Restrictions?
How this will affect your project?
Outline the procedures for monitoring risk contingency measures.
Contingency measures must be kept relevant to the project they concern through
careful monitoring and readjustment. This monitoring and readjustment must be
documented and stored for later referral – they can be updated in the future to
reflect changes. This will also help you better plan for the future. Any changes in
risk contingencies must be clearly communicated to all applicable team members
and stakeholders. Ensure that the correct training is being issued and revised plans
are properly distributed at appropriate timelines.

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Activity 2G
Objective
To provide you with an opportunity to identify and report opportunities in the

same way as risks.
Activity
Briefly explain the procedure of identifying and reporting opportunities in

projects.
Same as reporting risks, project manager must report opportunities as well.

Opportunities could be:
 Better means of achieving a result

 Changes in the project or broader environment that offer scope for
rescheduling activities to better effect
 Efficiencies or methods to work more effectively, such as ways of
shortening an activity etc.
Opportunity reporting mechanisms are: electronic, verbal, writing. The process is

below:
 Select the reporting format

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 Establish the reporting policy

 Relate the reporting policy to the treatment.
When identifying opportunities one could use qualitative or quantitative research

or it could happen unexpectedly. Opportunities could be ways to increase
productivity and profits and ways to reduce risks.
What questions might you need to include in a SWOT analysis?
Strengths:
 Are the necessary skills available?

 Is the budget enough?
 Will any new equipment be required?
 What level experience is on the team?
 What are the project objectives?

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Weakness:
 What impact will risks have on costs?

 How much will contingencies cost?
 Will any outsourcing be required?
 Is the schedule reasonable?
Opportunities:
 Can the project be applied nationally/internationally?

 Do your competitors have weaknesses?
 Industry trends?
 What new developments have occurred?
Threads:
 Is your competition well established?

 Will experienced staff leave your organisation?
 Are new methods/technologies fully tested?
 How will external factors affect your project?

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Activity 3A
Objective
To provide you with an opportunity to contribute to ongoing review of project

outcomes to determine effectiveness of risk management activities by accessing
project risk records and other available information.
Activity
What types of risk records might exist?
 Lists of potential risk events

 Project and/or organisation files and records
 Risk analysis and reappraisal
 Risk diaries, risk registers, incident logs, occurrence reports and other
such documentation
 Risk management lessons learned
 Risk management plan.
What questions might you ask to determine the effectiveness of outcomes?

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 What was achieved?

 What the short-term and long-term outcomes?
 What were the difficulties in achieving them?
 What changes were made throughout the project?
 What risk management plans adjustments had to be made?

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Activity 3B
Objective
To provide you with an opportunity to report risk management issues and

responses to others for lessons learned or application to future projects.
Activity
What questions might you need to ask when reporting risk management issues
and responses?
 What were the issues?

 Who did they affect?
 What aspects of the project did they affect?
 What were the causes of the risks?
 Were the risks controllable?
 Did the impact ratings change?
 What contingencies were activated?
 Were there any unplanned changes?
 How did you react to these?
 Were the objectives achieved?
 Were the objectives realistic within the timeframe?

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What steps might you need to take when reporting issues and responses to
others?
 Be concise in your reporting and only include the relevant information.

Focus on the major issues and outcomes, as these will have the most
impact in the future.
 Involve the stakeholders, team members and external consultants when
sharing information and confirm what processes you used to assess the
risk management issues, so they can relate your information to these
methods.
 Create a project inventory that allows you to include the current risk plan
and highlight the best practices.
 From your assessment, create a reviewed risk assessment plan for
consideration for future activities and projects. Identify how this new plan
relates to the objectives and the benefits it creates/problems it solves.
 Try and make the lessons learned and analysis as applicable to other
future projects as possible – this will ensure the process is efficient and
can be used across a multitude of projects.

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BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

Assessment – BSBPMG415: Apply project risk management techniques 3

Competency Record to be completed by Assessor 4

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

Name: Byambadorj Delgersaikhan

Address: 15 Allen street Waterloo NSW 2017

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

Competency Record to be completed by Assessor

Date of Assessment: _______________________________________________________

Learner is deemed: COMPETENT NOT YET COMPETENT (Please circle)

If not yet competent, date for re-assessment: ____________________________________

Comments from Trainer / Assessor:

Assessor Signature: ________________________________________________________

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

A demonstration will require:

➢ Performing a skill or task that is asked of you

➢ Undertaking a simulation exercise

The observation will usually require:

➢ Performing a work based skill or task

➢ Interaction with colleagues and/or customers

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

You should be able to demonstrate you can:

➢ Assist with risk analysis and planning

➢ Perform risk-control activities

➢ Contribute to assessing risk management outcomes

You should also demonstrate the following skills:

➢ Navigate the world of work

➢ Interact with others

➢ Get the work done

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

To provide you with an opportunity to contribute to identifying and prioritising

Outline the following, noting their uses:

Risk categorisation sorts types of risks into specified categories, so they

➢ Risk data quality assessment

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

objective and credible in order to give us an accurate result. Importance is

➢ Risk likelihood and consequence ranking

 Risk likelihood refers to the chance of something happening- the

➢ Risk urgency assessment.

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

Risks must be dealt with in terms of immediacy – those which may

To provide you with an opportunity to contribute to developing risk

Explain the following risk management strategies:

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

This is when a risk is stopped before it makes an impact and controls it at

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

To provide you with an opportunity to contribute to developing and

Imagine you are part of a project to manufacture an updated model of your

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

Ris Impact on Impact on

MR Late from Medium By increasing the Getting behind

MR Product High Budget could be Manufacturing

Risk status (current/closed; location)

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

To provide you with an opportunity to monitor risks according to agreed project

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018

and risk management plans and advise project manager of changing

Outline the following:

➢ Recommended corrective actions- These aim to alter a situation once a

BSB41515/Module C/Apply project risk management techniques/version 1.4/April 2018