Performance Reports

Risk Management
 Status Report: states where the project stands now. Can
use earned value analysis as preparation for these
reports.
 Progress Report: states what has been accomplished. CPI
and SPI can be used here as well as showing task /
activity accomplishments
 Forecasting Report: predicts future status and progress.
CV, ETC, and EAC computations can be used

Definitions

 Risk management planning is the process of deciding how to deal with and plan for project risks
 Stakeholder risk tolerances, WBS and the project charter are several inputs to Risk Management Planning
 It is a way to measure a person’s risk tolerance: utility function
 Delphi Technique: it is a technique to solicit expert opinion anonymously. Several experts in the desired area are sent a
questionnaire, report or similar matter. Each one sends back their opinions. The opinions are collected.
 Risk identification should be performed as early as possible during all project phases especially during the project planning
phase. Risk identification is an iterative process
 A risk event is an occurrence that can affect the project for better (opportunity) or worse (threat)
 Outputs from risk identification are a list of possible risks and triggers
 Risk identification will examine the impact of risks on the triple constraint: time (schedule), resources and scope, while
assuring a high level of quality

Risk Analysis

 Qualify the identified risks by assessing the impact and likelihood of occurrence
 Use scales of probability and impact to create a risk rating matrix. Prioritize the risks.
 Quantify the risks by assessing numerically the probability of each risk and the impact it will have. This analysis can lead to
both time and cost contingencies
 Expected monetary value for each risk event (EMV) = PROBABILITY * IMPACT = EMV. EMV can help define budget reserve
requirements
 Monte Carlo simulations can determine riskiness and probability of impact overtime. The results are often shown as an S
Curve

Risk Response Planning

 The risk response plan will include specific actions to take if critical risk events occur, time and cost contingency budgets,
and assessment of project termination liabilities
 It is important to monitor non critical risks for symptoms
 Avoidance is the type of response used to find a different approach so as to avoid the risk
 Mitigation is the type of response used to revise scope, cost, schedule or quality without impact on the project, in order to
reduce uncertainty on the project
 Acceptance is the type of response used when the risks may be acceptable (low impact / probability)
 To develop a contingency plan should the risk occur is called active acceptance
 To deal with the risk as they occur is called passive acceptance
 Transference or deflection is the type of response where you buy an insurance or contract to someone more experienced in
order for them to assume the risk
 Monitoring and Control
Risk Management
 Execute and update the risk response plan as well as
making sure that the project assumptions are still valid
 The earned value analysis is a major tool for monitoring
overall project performance
 Type of risk that remains after avoidance, mitigation and
transfer responses have happened: Residual
 Type of risk that happen as a direct result of
implementing a risk response: Secondary